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Role of negotiations in construction.

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ILLINOIS INSTITUTE OF TECHNOLODY Table of content: page # 1 Role of negotiations in construction .......................................2 2 Negotiation theories and principles ........................................2 3 Improving negotiation process .............................................4 4 Computer based improvements for negotiation process ................4 5 Conclusions....................................................................6 6 References.....................................................................7 Role of negotiations in construction Negotiation is a form of the decision-making process where two or more parties jointly search a space of possible solutions with the goal of reaching a consensus. In the construction industry, collaboration is an essential key for the success of projects. Since different participants from different organizations try to work together in projects, competitive stresses exist in their relationships and as a result, disputes or conflicts may inevitably occur; negotiation is preferred by project participants for the settlement of claims. Negotiation plays an important role in resolving claims, preventing disputes, and keeping a harmonious relationship between project participants. However, claims negotiations are commonly inefficient due to the diversity of intellectual background, many variables involved, complex interactions, and inadequate negotiation knowledge of project participants. ...read more.


The learning model is an important behavior model that views negotiation as a learning process. Negotiation strategies are contingent and contain errors, and expectations will change; this will lead in turn to a modification of each party's choice of strategy. What has occurred previously is used as a standard of assessment by which to choose what to aim for and what to do next. Negotiation theory represents the qualitative aspect of negotiations. Negotiation theory is the study of the exchanges between parties designed to reconcile their differences and produce a settlement. Negotiation theory aims to assist during the negotiation process so that the qualitative characteristics of a negotiation are taken into consideration. Improving negotiation process Research done by Feniosky Pe -Mora and Tadatsugu Tamaki show that the issue of the project structure and delivery system is an important driver of negotiation, because they define the temporary formal and informal relationships among the different parties in a project and subsequently, they define the framework of conflict negotiations within that project. ...read more.


He pointed out five major characteristics in the A/E/C industry that have to be considered in a negotiation: collaborative-competitive nature, domain dependent barrier, strategy-influenced outcome, project delivery system, and globalization trend. SpaceSolver is an Internet-based software package that uses new algorithms developed at the Swiss Federal Institute of Technology (EPFL), Lausanne, for solving multidimensional nonlinear inequality constraints on continuous variables. Solution spaces are proposed, instead of single solutions only, to support collaborative tasks during design and construction. Currently, partners involved in construction projects typically assign single values for subsets of variables and then proceed, often after tedious negotiations with other partners, to integrate these partial solutions into more complete project descriptions. It also contains many features that are useful in collaboration, such as data management and protection tasks for shared and private data for collaborative projects. Conclusions Since building construction involves so many people from different fields, negotiation occurs very often and has a big influence on construction processes, like change in costs or deadlines. So it is important to try to improve commonly used techniques of negotiations. Both computer based software and more intensive analysis and records of past negotiations may dramatically improve and speed up negotiation process. ...read more.

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