Collaborative Negotiation Behaviors in Thai Construction Projects

Abstract

When construction contractors encounter difficulties and changes from what was originally stated in contract documents, fair and equitable adjustments are required. Owners use construction management (CM) consultants to act as primary negotiators on their behalf. Throughout project execution, seamless negotiations take place that are intended to improve the relationships that are critical to successful project delivery. This study investigates the collaborative behaviors between CM consultants and contractors acting as negotiators in adverse situations. Characteristics of collaborative negotiations are identified as being rational, goal-oriented, reactive, cooperative, and adaptive. Four negotiable situations were investigated: change orders, errors in drawings and specifications, differing site conditions, and delayed progress payments. The research for this study used a questionnaire survey of 83 project managers from 51 CM consultants and 32 contractor companies focused on building construction in Thailand. The results show significant differences in collaborative behavior between CM consultants and contractors. Contractors were much more aware of the outcome of negotiations, which could lead them to be less collaborative. Both parties strongly regarded rationality as normal practice. Adaptability to new approaches proved difficult in negotiations. This study also proposes strategies and tactics for better collaboration to achieve win-win results in negotiations.