Conflict Prevention in Project Management (eBook)

Dr. Wolfgang Spiess, Engineering Degree (Dipl.-Ing.) at Technical University Berlin, Germany, Doctor´s Degree in Systems Engineering, Lecturer at Technical University Berlin for Planning and Management Systems. CEO of Trapp Systems Engineering, developing computerized planning systems and simultaneously Head of Organisational Division of F.C.Trapp Construction Company. Head of International Division of RWTÜV one of the leading companies for quality and safety supervision. Senior Executive VP of SGS (Société Générale de Surveillance) world leader in quality and safety inspection. Major experience in arbitration for the ICC (Paris). Finn Felding holds a Master Degree in Economics at University of Copenhagen. Post Graduate studies at Technical University of Denmark. He has 30 years experience in international engineering contracting in line positions from Assistant Project Manager to Managing Director in FLSmidth A/S, Copenhagen, APV Danish Turnkey Dairies Ltd., Aarhus, Denmark and the Christiani & Nielsen owned M&E Contractor in Thailand. He has managed or appraised projects in Asia, Europe, Americas and Austral Asia from a value of EUR 100.000 to 300 millions. Since 1997 he has operated as independent Project Advisor with assignments for international engineering and contracting companies. Furthermore he has developed and implemented international project management courses at Maersk Training Center etc.    

Preface 5
Contents 7
1 Introduction 11
2 Parties, Roles and Interests in International Projects 15
The Parties 15
Distribution of Responsibilities Between Contracting Parties 17
Analysis of Contracting Parties and Their Interests 19
Conflict Contingency Plan 19
Laws, Regulations, Decrees and Standards Governing the Contract 19
The Authorities of the Project Country 21
Other Players 22
Conclusion 22
References 23
3 Engineering, Supply and Construction Contracts 25
Contract Types andTheir Elements 26
Material Obligations and the Drafting Process 27
Regulatory Obligations 32
Financial Obligations 33
Taxes 36
Project Organisation Provisions 37
Dispute Resolution Provisions 37
Contract Drafting in Europe, Asia and America 38
Conclusion 48
Questions on Chapter 3 49
References 50
4 Preventing Conflicts by Application of Psychology 51
Case Study: The Fertilizer Plant 51
Understanding the Dynamics of Con.icts 53
Dimensions of Con.icts on Project Level 56
Understanding One’s Own and the Other Party’s Reactions to Con . icts 59
Fostering Constructive Responses to Conflicts 64
Understanding Organizational Differences 67
Suggestions About How toWork out a Psychological Contract 68
Conclusion to Chapter 4 69
Questions on Chapter 4 70
References 70
5 Negotiations Leading to Conflict Resolution 73
Introduction 73
Conflict Causes and Sources 74
Why Commercial Negotiation is the PreferredMethod of Conflict Prevention 78
How Can the Rate of Success in Commercial Negotiations Be Improved? 81
The Contract Parties and Their Situation 83
Preparation of Negotiations 83
Suggestions on How to Start Settlement Negotiations 87
Negotiations Leading to Settlement 88
Making the Agreement for a Settlement 90
Handling Break-down of Negotiations 92
Negotiations Parallel with Litigation 93
Executing the Settlement Agreement 93
Negotiation of Delays and Extension of Time 94
Regional Differences 97
Case Studies 98
Conclusion to Chapter 5 106
Questions on Chapter 5 107
References 108
6 Litigation, Arbitration and Mediation Contributing to Conflict Settlement 109
Project Manager and Monitor of Litigation 109
Considerations Concerning the Strategy for Litigation 112
Pre- Arbitral and Soft Resolution Methods 116
Arbitration and Litigation 119
Case Studies and Questions 129
Conclusion to Chapter 6 132
Questions on Chapter 6 132
References 133
7 Expertise Contributing to Conflict Solutions 135
The Appointment of the Expert by the Court 136
The Appointment of the Expert by One or Both Parties 139
Execution of the Expertise 140
Can an Expert Be Rejected? 142
Cost of an Expertise 143
Case Studies 145
Conclusions to Chapter 7 148
Questions on Chapter 7 149
References 149
8 Project Management Tools to Help Avoid Conflicts 151
The Detailed Project Plan 152
The Personnel for the Project 170
Case Studies and Questions 174
Conclusions to Chapter 8 176
Questions on Chapter 8 177
References 178
9 Conclusions and Recommendations 179
Glossary 183
Index 193