PPMP 20011 Commercial Project Negotiation for Project Managers Practical Assessment 1: Projects Negotiation and Conflict Report Prepared by: Richard Egelstaff PMP, Ph.D (c), MBA (Adv), BA Discipline Leader for Project Management, School of Engineering & Technology Higher Education Division CQUniversity RockhamptonTopics • Qld Health Payroll • Practical Assessment 1: Projects Negotiation and Conflict Report 2. The Projects; 3. The Participants; 4. The Negotiation Interaction Process; 5. The Negotiation Methods; 6. The Outcome. 2QLD Health Payroll • YouTube: – QH Payroll Disaster Case Study - News Roll-up from 2010 to 2013 • Case Study Files for Practical Assessments: – 2012-05-31 • KPMG QLD Health Payroll Implementation Review – 2012-11-01 • Secret Cabinet documents emerge - Courier Mail – 2013-07-31 • Queensland Health Payroll System Commission of Inquiry Report – 2014-01-23 • Grosser M 2014 Legal lessons - Government News – 2014-12-14 • Eden Sedera 2013 The Largest Admitted IT Project Failure in the Southern Hemisphere 3Practical Assessment 1: Projects Negotiation and Conflict Report • Dates: – Posted template in week 6 – Due in week 8 • Purpose: – The Projects Negotiation and Conflict Report is a communication tool that is used as the basis for managing negotiation, identifying conflict areas and stakeholder engagement. • Sources: – KPMG 2012 Review of the Queensland Health Payroll System; – Peña-Mora F., and Tamaki T. 2001. Effect of Delivery Systems on Collaborative Negotiations for Large -Scale Infrastructure Projects; – Alfredson T., & Cungu A. 2008. Negotiation Theory and Practice; – Walker and Walker 2015 Collaborative Project Procurement Arrangements; – Kerzner Project Management: A Systems Approach to Planning, Scheduling and Controlling (2013); – Directing plus Managing Successful Projects with PRINCE2 (2009); – A Guide to the Project Management Body of Knowledge (PMBOK Guide) 5th Edition (2013). 4Practical Assessment 1: Projects Negotiation and Conflict Report • KPMG 2012 Review of the Queensland Health Payroll System – Recommendations (p. 9 & 36-38): – Project: 1. Forward strategy for payroll system; 2. Governance and decision-making; 3. People and change; 4. Funding. – Template Structure: 1. Program Information; 2. The Projects; 3. The Participants; 4. The Negotiation Interaction Process; 5. The Negotiation Methods; 6. The Outcome. 5Practical Assessment 1: Projects Negotiation and Conflict Report 2. The Projects – Walker & Walker (2015) Collaborative Project Procurement Arrangements Chapter 2: • The Shenhar et al. Diamond Perspective: NCTP (p. 7); • The Turner and Cochrane Four-quadrant Perspective (p. 9); • Projects from an Organizational Learning Process Perspective (p. 9); • Projects from an Identity Perspective (p. 10); • Projects from a Complex Product-Services Perspective (p. 12); – Your Task for each Project: • What are the project characteristics? • What are your justifications for these characteristics? 6Practical Assessment 1: Projects Negotiation and Conflict Report 3. The Participants – Peña-Mora and Tamaki (2001) state (p. 107-108) that: • project participants’ roles, responsibilities, and relationships are used to identify their interests, positions, and attitudes… …and the potential conflicts in those relationships. – Peña-Mora and Tamaki also identify that there are three participants: • Owner, Designers, Contractors – Your Task for each Project: • The negotiating position of the Owner, Designers, and Contractors • The potential conflicts in relationships that the Owner, Designers, and Contractors may have. 7Practical Assessment 1: Projects Negotiation and Conflict Report 4. The Negotiation Interaction Process – Alfredson & Cungu (2008) state (p. 107-108) that there are five possible approaches to negotiation: • approaches in negotiation (p. 9-18): • a structural approach; • a strategic approach; • a behavioural approach; • a concessional exchange approach; • an integrative approach. – Your Task for each Project: • Our recommended negotiating position. 8Practical Assessment 1: Projects Negotiation and Conflict Report 5. The Negotiation Methods – Alfredson & Cungu (2008) (p. 18) provide summaries of their approaches; – Kerzner (2013) (p. 1164) also provides negotiation methods; – Your Task for each Project: • Your recommended negotiating position – words or JPG mindmap. 9Practical Assessment 1: Projects Negotiation and Conflict Report 6. The Outcome – Walker and Walker (2015) identify three broad procurement approaches (p. 16-37): • 1A Design Bid Build (DBB) (p. 17); • 1B Cost reimbursement (Cost-Plus) (p. 18); • 2A Design and Construct (D&C) (p. 19); • 2B integrated Supply Chain Management (SCM) (p. 20+); • 2C Management Contracting (MC) (p. 21); • 2D consortia of Joint Venture (JV) contractors (p. 21+); • 2E the Build-Own-Operate-Transfer (BOOT) family (p. 23+); • 3A partnering philosophies (p. 25+); • 3B integrated solutions; including Competitive Dialogue (CD), Integrated Project Delivery (IDP) and delivery consortia/partner philosophies (p. 27+); • 3C alliancing including Project Alliances (PA), Design Alliances (DA) and program Service Alliances (SA) (p. 29+); • 4 Early Contractor Involvement (ECI) (p. 35); • 5 Framework agreements (p. 36). – Your Task for each Project: • Your preferred form of procurement as an outcome from the negotiation process. 10Summary • Qld Health Payroll • Practical Assessment 1: Projects Negotiation and Conflict Report 2. The Projects; 3. The Participants; 4. The Negotiation Interaction Process; 5. The Negotiation Methods; 6. The Outcome. 11