Conclusions and Recommendations
In this book we have tried to answer the question: “What can be done to prevent, resolve or reduce conflicts in major international projects?” in order to minimize the inefficiencies, the trouble, the loss of money and other mischief they cause.
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In this book we have tried to answer the question: “What can be done to prevent, resolve or reduce conflicts in major international projects?” in order to minimize the inefficiencies, the trouble, the loss of money and other mischief they cause. The main conclusions and recommendations to achieve the reduction of conflicts are the following: •
The Contracts of the projects need to be improved with regards to the following aspects: . Clarification of the obligations due to the degree of turn-key responsibility and the “fit for the purpose” principle . Definition of Owner’s supplies, services, battery limits and interfaces with the contractor’s responsibilities . Split of responsibility for regulatory aspects of plant design, construction and operation . Improved technical specifications leading to fewer interpretation disagreements . Contract provisions for pre-litigation mediation between the parties by a third party mediator
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Conflict prevention and handling can be improved by proper application of Psychology as follows: . Behind every project conflict lie psychological issues, they have to be analyzed and handled . Project Management needs to apply the psychological tools presented in Chap. . Understanding of conflict development stages, dimensions, and different personality types are essential . The benefits of employing a psychological approach in project management are better working relationships and reduction of conflicts
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Negotiations to resolve conflicts can be improved by: . More emphasis on building good relations between the contract parties . Early detection and professional handling of disagreements before developing into a conflict . Better and deeper understanding of the background leading to a conflict . Careful preparation of conflict resolution / settlement negotiations . Improved creativity and professionalism in negotiations to reach a settlement
Conclusions and Recommendations
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Litigation can be made more efficient by the following measures: . Nomination of a Monitor of Litigation, who is not the Project Manager . Development of a sound strategy to be followed during litigation . Resolving conflicts through mediation or other “soft” resolution methods instead of court trials . Analysing the claims thoroughly, remembering that “a bad compromise is better than a good judgement” . Avoiding the high cost of a trial through careful cost analysis of legal proceedings before going to trial
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Handling of technical expertise (prior to litigation or as part of litigation) can be improved by observing the following recommendations: . Choosing the right expert as from the beginning . Giving the expert the opportunity to mediate between the parties . Analysing and choosing the right strategy to obtain a favourable expertise . Trying to reject an unfavourable expertise through rejection of the expert
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Conflicts can be avoided or resolved by employing the following essential project management tools: . Establishing a detailed project plan before implementation of the project, includ
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