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The Roles of Negotiation in Construction Essay

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The Roles of Negotiation 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 …show more content…

Economic theory seeks to develop dynamic models of process, involving offers and counteroffers and interdependent concession making. In contrast to the classical game theory, there is no concern for the discovery of once-and-for-all strategies, but rather an

intention to examine how the bargainers should interact in terms of their expectations of each other (Young 1975). Economic models analyze the processes through which the demands of the participants converge over time toward some specific point on the

contract curve.

Behavior theory focuses on the complex human factors of negotiation. It attempts to analyze the negotiation processes in which negotiators influence each other's expectations, perceptions, assessments, and decisions during the search for an outcome,

thereby affecting the outcome. 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). The learning model is an important behavior model that views negotiation as a learning process. Negotiation strategies are

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