Dealing with conflict in project management
- 1. Dealing with Conflicts in Project Management Presented by : • Ie Ignatius Eric Cahya Saputra • Jessica Gunawan
- 2. Agenda • Introduction • Problem Issues • Environmental Scanning • Alternatives Course of Actions • Key Success Factors • Selection of Best Alternatives • Recommendation
- 4. Introduction • “Project Management is premised on performance, cost, and time as its main goals wherein the focus is to meet customers’ expectation, deliver projects within budget and complete projects on time” (Muigua, 2011) • “Conflict is a situation that exist when persons pursue goals that are incompatible and end up compromising or contradicting the interest of another” (Odhiambo, 2003)
- 5. PROBLEM ISSUE - Jessica Gunawan -
- 6. Problem Issue • Conflicts & disputes are inevitable from a project : • Additional cost, fees, penalties, and other charges • Disputes disrupt teamwork • Challenges in facing conflicts management in Kenya : • Doesn’t have comprehensive and integrated legal framework • Mediation resolution is adopted from international law • Rigid Legal Framework (Arbitration and Litigation) • Ineffectiveness of dispute settlement process – Litigation • Implies on Kenyan characteristics and willingness to solve disputes in the more effective ways • Leads to high court fees, complexity of rules and procedures, years dispute settlements
- 7. ENVIRONMENTAL SCANNING - Jessica Gunawan -
- 8. Environmental Scanning DISPUTE SETTLEMENT OPTIONS 1 Negotiations • Between involved parties 2 Mediation • Neutral third party is required to reach the negotiated solution 3 Conciliation • Third party can propose a solution 4 Med – Arb • Combination of Mediation and Arbitration • Failing in settling the disputes leads to arbitration 5 Arb – Med • Starting with Arbitration and solve the disputes through mediation 6 Dispute Review Board • An external party that assist in resolving disagreement arise in the course of contract and make recommendation regarding disputes resolution decisions
- 9. Environmental Scanning DISPUTE SETTLEMENT OPTIONS 7 Early Neutral Evaluation • Private and non binding • Third party provide opinions as a basis for settlement discussions 8 Expert Determination • Parties submit disputes to an expert for determination 9 Mini Trial • Executive Tribunal • Voluntary non binding in which parties present cases to a panel supported by neutral third party 10 Adjudication • Informal disputes resolution mechanisms where third party neutral (adjudicator) is needed in decisions making process 11 Arbitration • Third party neutral is selected by the parties or authority to give a final and binding awards
- 10. Environmental Scanning DISPUTE SETTLEMENT OPTIONS 12 Litigation • The judges or magistrate provide a final judgment which is binding on the parties subject to rights of appeal 13 Conflict Avoidance • Clear wording contract • Monitoring for early detection of problems • Contract expiring management
- 11. ALTERNATIVES COURSE OF ACTIONS - Ie Ignatius Eric Cahya Saputra -
- 12. Alternatives Course of Actions SUGGESTED COURSE OF ACTION NEGOTIATION MEDIATION ADJUDICATION • Most efficient conflict management • Techniques being used : • Concessions • Compromise • Coercion • Confrontation • Voluntary • Non binding • Requires a neutral third party to reach negotiated solution • Requires third party to become adjudicator • Suitable for very tight time scales • Reached within 28 days • Flexible and inexpensive
- 13. KEY SUCCESS FACTORS - Ie Ignatius Eric Cahya Saputra -
- 14. Key Success Factors DISPUTE SETTLEMENT OPTIONS NEGOTIATION MEDIATION ADJUDICATION • Requires goodwill of the parties • Fast, cost saving, confidential, preserve relationship, provide range of possible solutions • Involvement of neutral third party affect the effectiveness of the dispute settlement process • Alternatives of slow progress dispute resolution process • Third party should make a fair, rapid, and inexpensive decisions • Able to deal with power imbalance between contractors and sub contractors • Adjudicator characteristics : • Not involved in implementation or administration of the contract • Knowledgeable • Experience
- 15. SELECTION OF THE BEST ALTERNATIVES - Ie Ignatius Eric Cahya Saputra -
- 16. Selection of the Best Alternatives The most efficient conflict resolution mechanism in term of • Time management, • Cost • Preservation of relationship is NEGOTIATION
- 17. Selection of the Best Alternatives • Considering Kenya : • Applies a very rigid legal framework since years ago • Is categorized as developing country HOWEVER • We foreseen that the most suitable ways for dispute resolution in Kenya is : ADJUDICATION • WHY?? • Flexible, fast, expeditious, cost effective and informal. • Used adjudicators to deal with power imbalance
- 18. RECOMMENDATIONS - Ie Ignatius Eric Cahya Saputra -
- 19. Recommendations RECOMMENDED SOLUTIONS 1 Constructing Dispute Clause • Allows more effective and efficient process 2 Improving the Legal and Institutional Framework for Managing Conflicts in Project Management • Kenya does not have an act dealing with Construction Adjudication • Kenya is able to restore speed, flexibility, and public confidence 3 Working as Team to Achieve Project • Transparency and open communication
- 20. Recommendations RECOMMENDED SOLUTIONS 4 Need for Conflict Avoidance • Risk management technique : • Ensure the risks are identified, analyzed, and managed • Good Procurement Strategy : • Ensure risks are appropriately allocated 5 Use of Scientific Technology for Certainty • Critical Path (Gantt Chart) • Help and predict the project completion on track • Ensure deliverables ready on time
Editor's Notes
- #7: Ineffectiveness of mediation process in Kenya – Page 11 bottom part (Litigation) & The needs to expand to scope of the civil procedure act and support adjudication as mean of dispute resolution
- #20: Constructing Dispute Resolution Clause By including the alternative dispute resolution clause in the contract allows more effective and efficient process Improving the Legal and Institutional Framework for Managing Conflicts in Project Management Kenya does not yet have an act dealing with Construction Adjudication thus by improving the legal framework, Kenya will be able restore speed, flexibility, and public confidence in existing legal and institutional mechanisms. Working as Team to Achieve Project Goals Need transparency and open communication to facilitate early disputes resolution and avoidance of disputes. Need for Conflict Avoidance Risk management techniques is needed to ensure the risks are identified, analyzed, and managed. Good procurement strategy : to ensure that risks are appropriately allocated. Use of Scientific Technology for Certainty The used of critical path analysis (gantt chart) able to help and predict whether the project completion is on track and ensure that deliverables are ready on time.
- #21: Constructing Dispute Resolution Clause By including the alternative dispute resolution clause in the contract allows more effective and efficient process Improving the Legal and Institutional Framework for Managing Conflicts in Project Management Kenya does not yet have an act dealing with Construction Adjudication thus by improving the legal framework, Kenya will be able restore speed, flexibility, and public confidence in existing legal and institutional mechanisms. Working as Team to Achieve Project Goals Need transparency and open communication to facilitate early disputes resolution and avoidance of disputes. Need for Conflict Avoidance Risk management techniques is needed to ensure the risks are identified, analyzed, and managed. Good procurement strategy : to ensure that risks are appropriately allocated. Use of Scientific Technology for Certainty The used of critical path analysis (gantt chart) able to help and predict whether the project completion is on track and ensure that deliverables are ready on time.