The technique for solving project conflict is negotiation. Negotiation maintain the differences. It brings agreement. Most project conflicts tend to be related to rights, contractual obligations and environmental factors.

A project manager must have negotiating skills in order to settle the dispute and conflict in project. Negotiation is needed in the following conditions
  • Subcontractors are used in the project.
  • Functional departments are involved in the project through matrix structure.
  • Management of variations are needed after the project is underway.
Models of Negotiation
  1. Partnering: Projects enter partnering agreements through negotiation for outsourcing parts of project. This avoid litigation and promotes cooperation.
  2. Chartering: A project charter is used as a written agreement between the project manager and functional manager. It details the project outputs, budget, schedule and human resource requirements.
  3. Scope change: Agreement is reached for change in the scope of the project through negotiation.
Key principles of Negotiation
  • Separate the people from the problem: Tackle substantive problems. The project's objectives should not be harmed.
  • Allow honesty between the negotiators.
  • Aim for win-win solution. Invent options for mutual gain.
  • Insist on using objective criteria for negotiation.

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