dispute with seller

Submitted by vijayavadrevu on Fri, 05/31/2013 - 10:56

You are a project manager and having dispute with your seller over certain changes. The seller claims it's a change request and you think it as a requirement of the product. The seller has formally disputed this. You have met once to discuss the dispute but no agreement could be reached. What should be the best way to resolve this?

A)Take this case to ADR (Alternative Dispute Resolution Team)

B)Continue to negotiate for few meetings and try to resilve the dispute

C) Involve the sponsor to settle this claim

D)Cancel the contract, as it is something wrong the seller is talking about

 

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sanskrit

Fri, 05/31/2013 - 11:56

 Option A ?

vijayavadrevu

Fri, 05/31/2013 - 12:45

I too have answered as option A, looking at the sentence, " You have met once to discuss the dispute but no agreement could be reached"

Whereas the answer is given as option B

ColettaRuiz's picture

ColettaRuiz

Tue, 03/11/2014 - 02:46

I'm also considering this option A. If its in my case, I'll ask for writing help regarding the transcriptions.

Jgrind07

Fri, 05/31/2013 - 14:44

Best way to settle disputes is Negotiation. PM tried the negotoation only once. So he has to try again for Negotion. He can go to ADR if contineous Negotiatoins are failed. Hence the option B is correct.

Thanks

Jai

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cnppmp

Fri, 05/31/2013 - 14:50

It has been formally disputed by seller, so it should be dealt by ADR.

No where it is mentioned as per the contract to cancel the contract or taking any such drastic action.. Since it ahs been formally disputed there is no chance of further negotiating at PM level. I do not think it is Spnosr responsibility, may be procurement manager would have in case mentioned in different context.

 

Regards

CN Patil

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ColettaRuiz

Tue, 08/13/2013 - 08:21

I've disclosed such scenario to some paper discovery expert from California and their best suggestion is option A. That could make business more professional.

antonyvd

Tue, 08/13/2013 - 08:31

 

Negotiation is the best way to settle claims with seller.Since the buyer has met only once with seller,he can make more negotiation to bring him to a amicable settlement.If the negotiation is fruitless,then he can go for ADR.So I think the best option is 'B'- Continue to negotiate for few meetings and try to resolve the dispute.

pmbrett

Tue, 08/13/2013 - 17:19

 1) negotiation

2) if that fails, then ADR

3) if that fails, then litigation

-brett, PMP/Professional Contract Manager

GSA

Mon, 08/26/2013 - 05:49

I also think B is correct. The seller has formally disputed after the misunderstanding occurred. They have just met once so I think, re-negotiation is a better option. I believe that PM should try as much as he/she could to negotiate before going to ADR and litigation.

So, for this situation:
1. Negotiate
2. Re-negotiate
3. ADR
4. Litigation

Thanks.

kmohan

Mon, 08/26/2013 - 07:37

Firstly, it depends on the contract terms and conditions on what action has to be taken.  So, the buyer may to have to refer it.  Secondly, here the seller has "formally" disputed.  This means that he must have sent a legal notice.  If that is the case, then the option is to take it to ADR.  As the buyer/seller already met once and no agreement could be reached, the buyer also has to reply formally.  Negotiations are usually out of the court settlements and hence I think the answer should be A.

karanmehta

Wed, 09/18/2013 - 07:42

The answer is A...PMBok 5 mentions this (pg: 384):

 

If the parties themselves do not resolve a claim, it may have to be handled in accordance with alternative dispute resolution (ADR) typically following procedures established in the contract.  Settlement of all claims and disputes through negotiation is the preferred method.

 

 

kevinkkyip

Tue, 03/11/2014 - 04:17

I agreed that 'A' is the best option.  As the Seller FORMALLY disputes it, the PM should also deal with it with ADR.  Being said that, it does not bar the negotiation to continue in parallel.  If that succeeds, the ADR can be dissolved.