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News & Press: 2018 News Items

Bargaining chips

Saturday, 24 February 2018  
Posted by: Bert vd Heever
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In the February/March 2018 issue of the RICS Construction Journal,  Chris Green explains why negotiation is vital to construction, and how to improve your skills while upholding ethical and professional standards.

He says that "...the valuation of variations, extensions of time and a project’s final account should all be matters of fact and entitlement, as in the amount of time or money calculated exactly in accordance with the contract change control mechanisms. However, it is commonplace in construction and infrastructure to have to negotiate agreements, particularly where the form of contract contains variation and extension of time mechanisms requiring one party or the other to make a fair and reasonable assessment of entitlement. In these circumstances, it is helpful to develop a clear negotiating strategy that will enable the parties to reach an amicable and equitable agreement."

He then describes the five positions that describe the level of disagreement and the appropriate intervention strategies for resolving them.

These are:
1. Proactive problem-solving
2. Disagreement
3. Contest
4. Fight
5. War
An amicable agreement will not be reached until the parties move to position 1

To find out which interventions will be required open the new Construction Journal and turn to page 20.