NEGOTIATIONS IN THE CONSTRUCTION INDUSTRY.

Negotiation is a very important discipline in this industry since it establishes the baseline for trust and professional responsibility of delegation.

Successful negotiations rely heavily on efficient communication since it applies in all phases of the project. Just to mention a few:

• Initiation - clients and consultants enter into negotiations during briefs as they settle on payments and the general scope of work. Clients and contractors must get to a contract agreement which clarifies on issues such as pricing of work, timelines and general quality standards.
• Execution - Charge orders may be issued whether as an omission, addition or substitution calls for negotiations and agreement in cost implications or schedule adjustments. Suppliers and contractors may also get into negotiations to agree on issues like quality of materials and mode of delivery.
• Handover - disputes may emerge as the project is about be complete. This may be due to missing out on scheduled deadlines or payments.

However, the delivery of this aspect calls for good mastery and expertise. Assuming that you are called to a dispute, how will you handle it? For the case of conflict management, assume you are dealing with an approach-avoidance conflict between the client and the contractor, what would be your ideal checklist?

An approach- avoidance conflict is whereby you are making a decision about a situation with both positive and negative ramifications. For instance, you are considering to apply for a job that has good salary and of high status but again have to deal with a great deal of pressure and long working hours.

To apply it in construction; is whereby clients create huge variations to meet their satisfaction and fail to factor in that they are actually inflating the budget at their own expense and must be separately compensate the contractor but become notorious. So, lets negotiate to bring both sides to agreement. Remember, making it a win win case is the most ideal.

Background information - gather relevant information on each party`s interests, needs and priorities to help you justify your stand. Do not take sides. If there is a contract, then all is clear.

• Build a rapport with both parties - establish a positive and respectful tone with no demands or ultimatums. Listen as they both speak, ask open-ended questions and clearly articulate your own stand. On listening, pay attention to what is not being said.
• Establish a common ground - identify shared interest and goals as you foster a collaborative environment. Open up to new perspectives as you start making concessions which are balanced and fair.
• Closing out and documentation - maintain a persuasive and composed demeanour as you deploy persuasion techniques. Once an agreement is reached, review and make sure it is put down in writing for easy reference.

Again, follow up on the agreement and how effective it is since negotiation is a dynamic process. Always maintain open lines of communication with the other party.

Remember, negotiation not a confrontation but an act of diplomacy.

Published by Rickfes Construction.

Your idea is our pride!