Conflicts and disputes on commercial projects Essay

Conflicts and disputes on commercial projects - Essay Example The business deal is characterised by a choice to close the deal or walk away from it and on the other side a contractual agreement is entered into out of shear necessity. Contractual agreements have no option of walking away from hence senior managers should be aware of this fact before appending their signatures on the dotted lines. Even if a project and its distribution of work is better defined and the parties are better prepared and even if the contract is better drafted there still will be changes that give rise to disagreements between parties. In any commercial project, there will be unforeseeable changes that will require to be handled by the parties in a commercial manner. Hence there is need for an effective way of handling such disagreements for the project to be completed on time and with satisfactory results for the parties involved (Altfeld, 2010, p. 3-7). The presence of attitudes and aspects such as confrontation, problem solving, compromising, smoothing and withdraw al could all be applied by a strong facilitator to solve conflicts between team members. Leaders need to understand that most conflicts, in fact, contribute enormously to the experience and well performance of a team and for that reason must be regarded as constructive elements of multi-framework as long as the conflict is managed properly and channelled by a facilitator. Facilitation helps others to voice their views comfortably and avoid power and personality conflicts, (Spiess & Felding, 2008, p.407) According to Lowe and Leiringer, (2006, p.264) disputes and conflicts on projects or contracts are unpleasant and unavoidable at the same time as they divert valuable resources from the overall aim, which must be completion on time, on budget and to the quality specified to other unnecessary tasks such as dispute or conflict negotiations. In addition, they generally cost money and take time to solve, and they can destroy relationships which may have taken years to develop. Conflict i n part of western societies and idioms; to use the academic jargon, there is a western dialect argument idiom. Conflict can be said to be a part of dynamic capitalism and an integral part of commercialism conflict in the current commercial world. It can as well be seen as the functional and necessary part and its management is seen where the emphasis is on the axiom that it must be in the interest of all the parties to avoid disputes by managing conflict in such a way that disputes do not arise as this is sometimes described as dispute avoidance. The understanding of a dispute on the other hand it is important as it can be said to only develop when conflict is not or cannot be managed. A dispute can be described as the unnecessary or dysfunctional element that brings about a diversion of resources from the real goal in terms of settling unnecessary scores. During dispute resolution, there must be occasions where the parties have legitimate disputes and that the techniques of dispute resolution are employed to bring about the conclusion or resolution of the dispute. Commercial management needs to recognise both conflict management and dispute resolution and hence have a different approach in addressing each of them. There has been strong evidence for the ability of commercial banks to signal their strong conflicts through their organisational structure. Contrary to the impression in the congressional hearings, the potential for conflict of interest was not something that was discovered among commercial banks the day after the 1929 crash of the stock market. Some bankers were well aware of the problem even in the middle decade, before the market heated up. The farmers’