Construction Negotiation Online

Abstract

Disputes are common in construction projects and negotiating disputes are part of the daily routine of project managers and contract administrators. The recent wave of information technology (IT) has a tremendous impact on the way businesses function. The construction industry is also undergoing major structural changes due to the effects of IT. This paper discusses the application of IT in construction dispute negotiation. Making use of the current IT technology, a computerized construction dispute negotiation program namely CoNegO (construction negotiation online) is proposed. CoNegO utilizes the SmartSettle software technology. With the built-in facilities of SmartSettle, it is possible to conduct negotiations online, hence removing geographical barriers between negotiators. SmartSettle was developed based on the concept of “Even Swaps” in which negotiators are required to evaluate possible options available on the basis of their relative importance. As construction disputes are characterized by multiple factors and dimensions, the problem fits nicely with the “trade-off” methodology that underpins Even Swaps. The use of CoNegO is illustrated by a simulated negotiation.