PCC Conflict Resolution & Negotiation 3 — Questions and Answers
Question 1: A project faces a dispute over liquidated damages after a delay. The contractor argues force majeure; the owner argues poor planning. Which process BEST resolves this without litigation?
- The owner unilaterally deducts LDs from payment
- A Dispute Review Board (DRB) reviews contemporaneous records and issues a recommendation (Correct answer)
- The contractor halts work until the dispute is settled
- Both parties ignore the clause and negotiate a final settlement verbally
Correct answer: A Dispute Review Board (DRB) reviews contemporaneous records and issues a recommendation
A DRB reviews contemporaneous project records while the project is still active, providing timely, expert recommendations that avoid costly litigation.
Question 2: In integrative negotiation, the goal is to:
- Maximize one party's gain at the other's expense
- Expand the value available so both parties improve their positions (Correct answer)
- Avoid reaching any binding agreement
- Split every disputed item exactly in half
Correct answer: Expand the value available so both parties improve their positions
Integrative negotiation seeks to create value by exploring interests beyond the stated positions, resulting in mutual gains.
Question 3: A contractor submits a claim 45 days after a change event, but the contract requires 7-day written notice. The owner rejects the claim on procedural grounds. From a project controls perspective, what should the contractor have done?
- Submitted the claim through the project manager's informal channels
- Issued written notice within the contract-specified window and documented the event contemporaneously (Correct answer)
- Waited for the project to close before submitting all claims together
- Filed a lien without prior notice
Correct answer: Issued written notice within the contract-specified window and documented the event contemporaneously
Contractual notice requirements are strict; timely written notice preserves the contractor's right to claim and demonstrates professional project controls discipline.
Question 4: When preparing for a schedule impact negotiation, a project controls specialist should PRIMARILY rely on:
- Verbal accounts from the superintendent
- A contemporaneous, as-built schedule compared against the approved baseline (Correct answer)
- The original bid schedule only
- Anecdotal productivity data from similar past projects
Correct answer: A contemporaneous, as-built schedule compared against the approved baseline
An as-built schedule compared against the approved baseline provides objective, time-stamped evidence of delays and their causes.
Question 5: A project controls lead uses active listening during a conflict negotiation. Which behavior BEST demonstrates active listening?
- Interrupting frequently to correct factual errors
- Paraphrasing the other party's statements to confirm understanding (Correct answer)
- Remaining silent and taking no notes
- Preparing counterarguments while the other party speaks
Correct answer: Paraphrasing the other party's statements to confirm understanding
Paraphrasing confirms understanding, signals respect, and helps prevent misinterpretation that can escalate conflict.
Question 6: A change order negotiation is stalled because both parties are anchored to their initial price positions. The BEST technique to break the impasse is to:
- Threaten contract termination
- Introduce objective benchmarks such as RS Means unit costs or industry productivity rates (Correct answer)
- Agree to arbitration immediately
- Stop all change order processing until the project ends
Correct answer: Introduce objective benchmarks such as RS Means unit costs or industry productivity rates
Introducing objective industry benchmarks depersonalizes the price dispute and provides a neutral reference both parties can evaluate against.
Question 7: A project controls manager identifies that a conflict between two department heads stems from ambiguous responsibility assignments in the WBS. The appropriate corrective action is to:
- Replace both department heads
- Clarify and update the RACI matrix and WBS dictionary to eliminate overlaps (Correct answer)
- Let the conflict resolve itself over time
- Assign all disputed tasks to a single department unilaterally
Correct answer: Clarify and update the RACI matrix and WBS dictionary to eliminate overlaps
Ambiguous responsibility in the WBS is a structural root cause; updating the RACI matrix and WBS dictionary provides lasting resolution.
A project faces a dispute over liquidated damages after a delay.
The contractor argues force majeure; the owner argues poor planning.
Which process BEST resolves this without litigation?