Negotiations assignment based on class meeting representing different parties involved in contract with dispute

1. I am acting as Client Representative in this exercise,produced for Class assignment
1.0 Negotiation
“Negotiation is an open processfor two parties to find an acceptable solution to a complicated conflict”
(Lombardo 2003). According to Fisher and Ury define negotiating as “Back and forth communication
where some interests are shared and some are opposed” (Watchel, 2005).
1.1 Preparation Stage and objective setting
Using PREPBAR (Oliver, 2010) strategy for planning meeting. It is vital to have pre meeting
preparation and set written goals. According to Richards-Gustafson, F. (2016) poor planning can
result in more concessions than initially planned. Conducting research was first step to ascertain
required goals. So initial summary sheet of knows information was developed to make points for
meeting. Information with other contractor,sub-contractor and Consulting engineer should be
sent at this stage about meeting timings and agenda. Strategy to achieve goals were devised prior
to meeting. Including setting Alternatives and developing of idea about other parties potential
priorities. (Planning and structuring effective meetings, 2011). Brainstorming all the issues to be
discussed in meeting. (Marsh,Belsey, 1999)
Type of Project Construction of Warehouse building and small
office
Location Glasgow Industrial Area
Area of construction 600 m2
Type of construction Pad Foundations, Reinforced Concrete Frame
and Precast Flooring Units and Flat roof
Timeframe of Project 44 Weeks
Figure 1 Pre Meeting Details and Summary of Project including dispute
Parties involved
Client, Contractor, Subcontractor and Consulting Engineer
Dispute
 Time Restraint, contractors are running two weeks behind the schedule
 Advance Stage change in design, resulting effecting Time and Profit of Contractors and sub-
contractors. Resulting 10 percent of work was directly affected.
 Client is reluctant to pay more than 20,000 for damagesor loss of profit due to change in design.
2.0 Objectives ofMeeting
 To address the concerns of all parties.
 To agree all parties on available budget
 To agree on finishing project including new added alterations recently added in design.

2. 2.1 Initial stages ofmeeting
I assumed to be taking role of Client Representative. It is clearly a form of Direct Negotiation
whereby continuous personal and direct contact between the involved parties exists. So both parties
also observe each other behaviour. (Zohar, 2015). Negotiations have a set sequence and during
different stages could be adopted according to situation accordingly.
In the beginning as agenda was distributed all positions and roles of all parties were well established.
So starting with generaldiscussion, question was posed about subcontractor, consultant and
Contractor general views about project in friendly manner. I wanted win- win initially before reading
about dispute however I would opt for Comprise Strategy option as I have some concessions 20,000
available (Oliver, 2011). This was time of listening and observation. As most powerful skill in
negotiating is listening. Consulting engineer explained his design changes and was concerned about
agreement.
Contractors were found concerned about changed design and subcontractor was concerned about
potential loss due to recent change in design and its effect on its supply chain. At this stage, I was
calm, kept emotions under control and some hint of offer of money was discussed. However a very
rigid policy about the completion of project was adopted. The developing of reactions is critical to art
of persuasion in negotiating (Zohar, 2015) therefore presentation of work progression PowerPoint file
was played which included all the facts.
2.2 Development of Meeting (Bargaining Phase)
As meeting progressed time management could have been issue had it not been properly planned. As
more the time pass, it could be added pressure on me to present solution.
At this stage I adopted role of Dominant (wachtel, 2005) as I have to assert my position as client
representative and show limitations in terms of time and budget, asfor me the results are more important
than any other priority.
Consulting Engineer as this stage brief about drawing and to my observation negotiated with
conscientious Style (Wachtel, 2005) as very focused on delivery of services, Subcontractor was more
concerned about losing time and profit and Contractor was concerned about supply chain and timely
completion of project.
At this time, I ask them questions with their consent,to know more about their thought, potential output
as they want? As this increases trust and keeps tension low.
At this point when I was clear of their viewpoint, Using BATNA (Wachtel,2005) as I was previously
briefed all parties about budget and time limitations, I showed flexibility, as I argued we can
compensate to some extent loss occurred due to change in design. At the same time I offered the
benefits of accepting this proposal, as out of nowhere they are now offered cash and extension of up
to two weeks. This would help them to complete their project and can bid for any other projects as it
will remove uncertainty.
Starting from only 10,000 pounds plus one week extension, I asked them if sub-contractors and
contractors are willing to discuss and give their feedback,
"To negotiate well, you do not need to be tricky. But it helps to be alert and prudent. The best
negotiators play it straight, ask a lot of questions, listen carefully, and concentrate on what they and
the other party are trying to accomplish at the bargaining table (14,2014).

3. Nonverbal communication, which is one of the most significant sources of information available to
negotiators, good negotiators tend to concentrate on what is being verbally communicated and also
should focus on nonverbal information. (Craver,2007).
At this stage, contractors showed subtle smile and bowed head, shows some sign of relief at other
ends, however they did not look completely satisfactory. Which means offers is near their settlement
range. I also noticed Consulting Engineer looking at Watch showing signs of Boredom as it seems
like it is time consuming, so involving him was essentialso I asked him if there is any future
modifications in drawings which he as happy to say no.
2.3 Conclusion ofMeeting
After seeing progress and mode change on other side, I made my final offer of 20,000 and two weeks
extension, Sub-contractors was seen leaning back with hand behind head a sign of confidence and
pleasure on developments, I also seen decreased movement in Contractor showing release of stress as
it also shows satisfaction on negotiations.
Contractor and Subcontractor asked me they are willing to accept offer,If I increase the final amount
to 30000 however since My budget did not allow it, I offered them final price of 20000 plus two
weeks extension to complete work in time. After some pause, they both agreed and signed the
contract.
2.4 Weakness and Strength
I have found we should have focused more on these issue in past meeting to avoid such present day
conflict and should have drafted a contract which could have carried risk to contractor including any
possible modifications of design. And our strength in this meeting was our preparations, time control
and negotiation skills which resulted in resolution of issue and work will continue as planned.
References
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