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Commercial negotiation between private and the government firms

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  • " PROJECT MANAGEMENT There is a difference between both the Government and private organizations. Thedifferences are listed below:1) When compared with the private organizations the Government organizations aremore powerful as they have all the autho..

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  • " PROJECT MANAGEMENT There is a difference between both the Government and private organizations. Thedifferences are listed below:1) When compared with the private organizations the Government organizations aremore powerful as they have all the authority and the government is under them.2) The private organization are clear that they have to achieve a specific target and theywork based on their set goals.3) Both the firms are concerned to find ways in managing certain services, ICT and thethus the agreement is decided.4) The Government organizations take few steps to work and achieve their targets.5) The government firms are aware of the laws and the rules that are applied by thegovernment and they act on the rules and regulations to carry out their workeffectively.6) The private firms face problems in creating and in launching the new product. Thereason is that they lack policy knowledge with respect to the laws and the rulesfollowed by the government.7) The manager of the private firm have a perception that they face more difficulties ingetting the legal terms and conditions than the government firms.8) As, the private firms follows any project as per the set target, it is easy for them tocomplete their project functionalities.9) The government firms consists of certain civil services, which provides effectiveperformance.10) At present day, almost all prefer to be a part of the private organization as they have aset of benefits which are not available in the Government. 11) But, earlier all preferred to be a part of the Government organization as thegovernment organization offered some extra benefits of power.1 The Commercial negotiation is common and hardly there is any difference in both theprivate and the government firms.The private firms are always money oriented and ensure toget more profit from their return.They take extra care to secure their firm's confidentialdata.The also take care to have a periodic check of the functioning of their organization. But,this is not available in the government firms. As the government changes they will have newchanges and till then no changes will be implemented.Though, the government takes care toimplement changes it becomes difficult due to the corruption in these organizations.Theprivate firms take the suggestions of their team members and comes to an appropriatestrategy, but in case of the government firms they don’t consider the view point of themembers, instead the orders will be followed by the higher authority.The commercialnegotiation undertakes the terms and conditions in supply and purchase of the product.Thegovernment has to take care that they offer less price for the same supply and purchase of theproducts.And this is the major difference between the government and the private firms. Thecommercial negotiation varies in terms of cost at the time of negotiation.The difference between the other parties like the contractors and the designers is listedbelow:The Contractors The DesignersThe contractors makes sure that the work is The designer works strategically and in acarried out strategically and in a fixed order fixed order.as mentioned in the plan.The contractors are responsible to plan, The designers are responsible for designingimplement and have a follow up of the the project plan. This is carried out byprojects from his team. gathering complete information of theThe contractors selects the best plan from The designers finds various solutions to thevarious plans provided by the designer. problems and the best one will be choosed.They only plan the environmental setup. The designer checks the plan’s feasibility2 and its constraints.They get the plan ready from the designer. The designer follows the following order:And, then they divide the tasks equally and a) Gathers information.work on it. b) Designs the scenarios.They must meet the given time to complete c) Develops the program.the tasks. d) Documents the project report.e) Finally the overall work of thedesigner is provide to theprogrammer.But, the contractors have no technology to The designers makes use of the technology.implement the plan, instead they make useof the technology in the management of allthe tasks to keep a follow up of all the tasks.The contractor must instruct their team The designer will design and implement andclearly about the plan. then clearly mentions all the usage of thedesigned program.There is a need to be always in touch with There is no need to be in always in touchthe stake holders. with the stake holders.The RQ1and RQ2 are answered by following the features to merge RBPWittgenstein’sFamily Resemblance Model. They are as follows:a) Project Alliances:The RBP forms differ as per the location of the place. The RBPforms followed the project alliance and other approaches to manage the negotiation ofthe project, managing the conflicts and the way the stakeholders contribute andconcentrate in the projects which has varying technologystandards and assetlifecycles.b) Partnership:The partnering is followed since a long time and is a tradition methodfollowed by the organizations.The partnership agreement is helpful inreconcilinginconsistent and conflicting objectives and drivers for the development of the3 organization and the project, then for maintaining and managing the relationshipswiththe partners and the stakeholders.c) SCM (Supply Chain Management): The Supply Chain Management attempts todecrease the number of subcontractors as it will benefit the financial condition andtheintegrated use of SCM and the primarily used techniques helped the organizations inJapan to gain the business cross shareholdings and their relationships in the business.Therefore, the organizations faced development. Here, the subcontractors are linkedclosely with the stakeholders to followthe approaches of SCM.As mentioned earlier,the decreasing of the subcontractors has a main reason i.e., it more number ofsubcontractors will make the bond less strong, when the subcontractors are discardedthen the closeness with the business stakeholders will be more close and strong.d) Framework Agreement:The framework agreement follows the strategic partneringmethod. These agreements are mostly implemented by the designers in the designservices, in construction and in project delivery services. Moreover, they are alsoimplemented in the maintenance management.The Walker & Walker follows a set of Collaboration and yes, we have come acrossthese types of collaboration. This is a part of the early contractor's involvement and itcontains four orders of collaboration. They are listed below:a) First Order Collaboration: The initial collaboration mainly works on the efficiency.Further, b) Second Order Collaboration:This collaboration works on the fair and appropriateprocess and on the common purposes of the project.c) Third Order Collaboration:This type of collaboration works on extra care for thecommonly used platforms.d) Fourth Order Collaboration:This type of collaboration works on extra care on thecommitted relationships.All these collaborations are adopted to increase the extent of the collaboration, to share all theresources as well as the profits and loss that occurs in all the organizations. This also helps ingaining motivating and increases the way the owners involve in the project.4 All the relationships are based on a negotiation which is a traditionally usedphenomenon in the business relationships.The relationship have various sections anddepartments to deal with and some of them are listed below:a) Management Contracting (MC) based Relationship:The project owner and thecontractor will have negotiation here.b) Integrated Supply Chain Management (SCM) based Relationship:The ProjectOwner and the delivery team will a talk on the terms and conditions in theirnegotiation.c) Strategic Partnering based Relationship:d) Joint Venturebased Relationship (JV):Owner of the Project and the delivery teammembers will have a relations so they discuss their terms and conditions.e) The (D&C) Design and Construct based Relationship:It takes place between thedesigners, their team and the delivery team.f) Boot Family:This is a relationship between the owner of the Project and the deliveryteam.The conclusions on the negotiation of the different relationships is that it makes an effectiveand a structured method to be followed during the interaction and the completion of the tasks.Thus, it benefits all in the process.The relationships are partially effective and it will be easy when compared to thetraditionally used relationships. Because, all the relationships have the same approaches asused in the traditional methods. In the Design and Contract relationship, they are integratedwith a single contract. It is already applied by the traditional method. Then, this relationshiphave very poor relation between the Project Owner and the delivery team. Within the deliveryteam,they have some relationship variations between the team members. The Integrated SCMrelationship also provides the poor relationship between the project owner and the deliveryteam. All the relationshipscontains some conflicts with the team. So, this is not fully easier5 with the other methods. Strategic partnering, Integrated Project Delivery (IDP) and IntegratedSolutions relationships give a smooth handling of the relationships between the participants.It avoids the negotiation with the project members. Framework agreements, Alliancing andearly contractor involvement are the relationship that give the very high relationship betweenall themembers of project team and the project manager. If the agreement is not signed by theparticular party, negotiation takes place at the time of delivery of the system. This signingapproach is only good in this relationship of RBP form. If the negotiation process takes placebetween the participants, it will give efficientdelivery. This RBP forms is very useful whilesigning the agreement. But, it is not involved in the process of checking the product quality.This generally gives the idea about the relationship among the participants who are involvedin the project.Government commercial negotiation has a major impact on the organization. Thisnegotiation will control the process of any organization. This negotiation particularly controlsthe financial status of the project. This mainly focus on reducing the cost of the purchasingproducts. This reduction is made by the negotiation with the supplier of the project. It willleads to purchase the good product at low cost. This is efficient in the project managementprocess. Sometimes it gives a negative impact on the negotiation process. That means, thatthe purchasing product may be poor. Because of bargaining with the supplier. Sometimes, itgives the positive impact in the organization. That is, the purchase product is good and also atlow cost. This will reduce the overall budget cost of the project. Before the negotiationprocess, the project manager should make the agreement with the suppliers. This agreementmust have the terms and conditions based on the product. The government sector mainly focus on the commercial planning of the project. Itcontains some rules and regulations to make the budget. These rules are given to thecontractor of the project. When the contractor makes the decision as commercial, theyremember the rules to give the payment to the other party. The commercial negotiation onlygives the clear cut solution to this problem. Also the contractor should make the agreementbetween the organization and the supplier. The agreement must have the rules and regulation6 about the payment. This agreement should be signed by both the parties such as suppliers,designers or delivery team members.The "RBP Wittgenstein’s Family Resemblance Model" gives the components that arenot available in the RBP forms. Platform foundational facilities are explained in this topic.This topic describes the following activities:? Behavioural factors? Platform facilities? Process drivers.The Platform Foundational Facilities of this model are as follows:? Joint governance structure? Motivation and context? Integrated risk mitigation strategy? Substantially co-located? Joint communication strategyThe Behavioural Factors of this model are as follows:? Commitment to be innovative? Trust-control balance? No balance culture? Common best-for-project mind-set and cultureThe Processes, Routines and Means of this model are as follows:? Incentive agreements? Consensus decision? Routines and practices, Open Book and Transparency processes.? Accountability and mutual dependence? Pragmatic learning-in-action? Continuous improvement and Focus on learning.7 These models, gives the outcome for the negotiation process. These activities areaccomplished before the tender stage. This framework activity is same as the strategicpartnering. It gives the services like building, designing, maintain and delivering the projectto the users of the project.This model gives the interaction among the design team members,POR and other participants on the project. To make a project delivery decision, the CDnegotiations are used through the tender of the project.This model is used to join the twoparties in partnership. So, the tasks are finished by both the member. It takes some time tofinish the tasks. This model also helps to reduce the cost of the project and increases theproductivity and uses the framework agreement form to give the performance improvement. The project delay can be controlled by partnership agreement. This partnershipagreement is helpful to reduce the conflicts in the project. There are two relationships that areavailable to understand the strengths and weakness of organization. They are IntegratedSolutions and Management contract. This relationship is used to develop the solution tocontrol the process. By using this relationship the resources are shared and routine works areshared. This sharing makes the relationship storing in the joint venture. Before thepartnership of both relationships the negotiation is necessary to maintain a smoothrelationship. The strategic partnering and the framework agreements are similar. Theframework agreement is used to manage the overall project implementation and it handles thebelow activities to manage the project:? Designing of the project? Building the project? Delivering the project ? Maintaining the management facilitiesThere are many agreements that are available to reduce the conflicts that occur in theth project management schedule and it increases the productivity. 10 week assignment mainlyfocuses on the partnership agreement. This partnership agreement gives many possibleimpacts on the organization. Because, if any participant takes action against the organization,as per the agreement the organization will take any actions on that participants. So, theparticipant is very careful and avoids these situations.8 th This commercial project negotiation lecturing of 10 week is helpful for structuringthe ideas to build the project based on the financial status. The main idea of this commercialnegotiation gives the bargaining with the participants of the project. The negotiation of theproject will reduce the overall budget of the implementation of the project. The collaborationtopic in the chapter 6 provides the detailed information of ambiguity, uncertainty and riskinvolved in the planning and problem solving process of the project. These are availableamong the participants such as designer, client and contractor. The RBP form provides therelationship strengths between the participants. This leads to commercial negotiation betweenthe project owner and the delivery team. If negotiation takes place between the projectmanager and the supplier, it will reduce the cost of the product. This negotiation gives theright product at low cost. The private organization has more focus on the commercialnegotiation. They work for the project more for profit. They negotiated for reduction of costwith anyone who involved in the project.Last week assignment focus on the below topics:? Relational KSAE? Technical KSAE? Business Solution KSAE? Project Management KSAE These topics are related to the strategies like Integrated Risk Mitigation strategy, Co- location Strategy, Joint Venture, motivation and Join Communication Strategy. Last weekassignment focus on some strategies that are related to financial status of the organization.That assignment did not focus on the conflicts with the team members.But this week assignment mainly focus on the conflicts that arise between the projectmanager and the team members. The RBP form characteristics and approaches provides theefficiency of the project. Also the RBP form defines many relationship. This relationshipimproves the communication of the participants and team members. Also gives the9 commercial negotiation and reduces the overall budget of the project.The delivery of theproject must meet particular needs of the project. The project will be design based on therequirement of the project. This is done by using the KSAE model.The RBP application isonly used to enhance the KSAE model. The characteristics of RBP form D&C, JV and MCare used in co-ordination of manage interfaces. It helps to optimize the plan. The RBP formcharacteristics partnering, FA, Alliancing, IPD and SCM are used to enhance the interactionat planning, routines and learning process. It helps to project participants to understand theirroles and responsibilities.Many of the projects failed due to the poor business knowledge ofthe project member. This KSAE gives the solution to that problem. In Food and Agriculture Organization of United Nations, the thought of Alfredsonand Cungu mainly focus on the conflicts that occur in the commercial planning of the project.Also this idea is used to identify the conflicts and take the action for reduce it. It examines theexact action to reduce the conflicts that occur in the organization. This gives the commercialnegotiation to reduce the cost for food. This commercial negotiation helps to negotiate andtoreduce the conflicts when the conflict is identified. Thus, it is helpful for all the organizationsand their teams. It is also helpful to platform foundation facilities. It avoids the conflicts andhelps to smoothen the relationship between the project team members or the participants. Theideas are same but it differs in the different applications. This week’s lecture also follows thatidealogy for the commercial negotiation. Here, the negotiation is done by using the approachof making the agreement. Also it helps to increase the productivity by this agreement.Therefore, their idea is very useful in reduction of the conflicts in the organization. This ideais used to negotiate with the food committee people to reduce the cost for the food withoutharming the quality and gives many advantages to the organization. Mainly, this idea is usedto increase the productivity of organization and reduce the cost.10 "

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