Negotiatin in construction
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. Most project managers consider negotiation as the most time- and energy-consuming activity in claims management. To address the complex technical and human issues in negotiation, several important negotiation theories and principles have been developed,
By obtaining the interpretation of negotiation characteristics in architecture/ engineering/construction (A/E/C) industry, the methodology has integrated the concepts of game theory with the concept of negotiation theory to help guide negotiations toward sustainable outcomes. Economic theory seeks to develop dynamic models of process, involving offers and counteroffers and interdependent concession making. Therefore, it is expected that different delivery systems can be more or less effective in terms of dispute prevention or dispute resolution, depending on the project in which they are applied. However, it does not really solve the main problems of negotiation, like: different goals of participants and getting them to an agreement. Currently the main trend in improving negotiation processes is to develop an efficient computer based system that will speed up negotiation. Economic models analyze the processes through which the demands of the participants converge over time toward some specific point on thecontract curve. Much attention is given to the nature of changing expectations and negotiators' tactics, and to the significance of uncertainties of information, perception, and evaluation-all matters that tend to be ignored by game theory and economic theory (Zartman 1977). 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. 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. There are two types of negotiation support systems used or being developed: expert and decision analysis systems, and multiagent systems. which mainly include game theory, economic theory, behavior theory, and negotiation theory. 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. In 1998 Pe -Mora and Wang proposed a collaborative negotiation methodology and a computer agent named CONVINCER to facilitate/mediate the negotiation process in large-scale infrastructure projects. Their research indicates that keeping change-order record and index of negotiation effectiveness would provide information on the characteristics of the negotiation process, disadvantages of different delivery systems and help project participants to plan and form contracts in the future.
Common topics in this essay:
Tadatsugu Tamaki,
Bacharach Lawler,
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EPFL Lausanne,
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game theory,
SpaceSolver Internet-based,
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Feniosky Pe,
economic theory,
computer based,
classical game theory,
theory economic theory,
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behavior theory,
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