case analysis of 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

3. INTRODUCTION
- Jessica Gunawan -

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