One of the most common problems in formal negotiations is finding a mutually acceptable price for a service or product. Understanding the market value of a product or service provides a package for developing a trading strategy. The price paid for the latest or similar projects provides information about market value. Seeking expert advice from sources who know the market is another source of information. Based on this information, the project manager can then develop an expected range in the current market, from the lowest price to the highest price. This is a more complex situation with personal obligations to each party to the conflict and consequences for the project. The project manager needs a conflict resolution approach that increases the likelihood of a mutually acceptable solution to the project. A conflict resolution approach is to assess the situation, develop a common understanding of the problem, develop alternative solutions, and jointly choose a solution. Assessing the situation usually involves data collection. In our example of a change order conflict, data collection would involve an examination of the initial scope of work and perhaps people`s understanding, which could go beyond the written framework. The second step in developing a solution to the conflict is to reformulate, paraphrase and rethink the problem behind the conflict in order to develop a common understanding of the problem. In our example, the general understanding may look at the change management process and determine that the current change management process may not achieve the client`s goal of minimizing project changes.
This phase is often the most difficult and can take an investment of time and energy to develop a common understanding of the problem. Conflicts in a project are to be expected due to the level of stress, lack of information in the early stages of the project, personal differences, role conflicts and limited resources. While good planning, communication and team spirit can reduce the amount of conflict, conflict will persist. The way the project manager handles the conflict makes the conflict destructive or an opportunity to create energy, creativity, and innovation. Active listening was important to create a common understanding from which to develop an effective project plan. Performance period The performance period defines the period during which the work is performed. It is important to determine this in advance, as time can be an important factor in the final cost of a project. The duration of performance can be measured in one of the following ways: A project usually starts with a charter or contract. .