Negotiation

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.