Thursday 18 June 2009

NEGOTIATION ISSUES, STYLES AND OUTCOMES IN BUIDING CONSTRUCTION PROJECTS IN THAILAND

In construction industry, conflicts are inevitable in any construction projects.
Construction projects require that every parties are related in term of negotiation such project managers, safety managers, clients, suppliers, designers, site engineers, and consultants. Negotiation is one potential consequence to succeed projects when comparing with other factors. Many negotiators need to understand their personal characteristics for bargaining.

For any given issues, problem or conflict encountered, the participant has a negotiating position. Different construction projects have different conflict styles and different departments try to work together.

Mr. Surapong Panja made a case study on “Negotiation Issues, Styles, And Outcomes: A Study of Building Construction Projects in Thailand”. He learned that construction industry always has conflicts that can be attributes to more factors such as change order, variation work, job safety, price adjustment (inflation or deflation), and time extension. These factors can produce many conflicts itself and may contribute germination and manifestation. Dispute is always negotiated by project participants, and the process of negotiation is the first task before considering other resolution methods. The project manager of contractor tends to use avoiding style. It is suggested that it is more important for negotiation outcome to understand the proper negotiation style on each negotiation outcome in order to make beyond benefit to negotiation outcome with satisfaction.


His abstract is copied and posted here.


ABSTRACT

Negotiation is one potential process to make construction projects to succeed or fail. The negotiation between project participants is the first step to do businesses even construction industry, and it can take place all stages of construction projects. In negotiation process, the characters of project participants can affect to their behavior which can lead to resolve conflicts and outcome with satisfaction. Thus, the ability of project participants for negotiating effectively is a one essential success or failure. Weakness of negotiation can also affect to a sizable loss not only negotiator’s needs but also affect to other sides involve. Notwithstanding, understanding both the behavior of negotiation style, negotiation issues, and outcomes are valuable for practices and academics.

This study also emphasized on five aspects: (1) to study negotiation styles regarding with the project manager of consultant and contractor in the way they use negotiation styles. (2) To study what are important negotiation issues between the project manager of consultant and contractor those are important to both parties (contractors and consultants) and issues that are possible for value exchange in bidding and construction stage. (3) To find out the relationship between negotiation styles and negotiation outcomes. The questionnaire survey involved in thirty high-rises building projects.

Based on the results, the finding can suggest that different negotiation styles will affect to different negotiation outcomes, and what the negotiation style are appropriate with each negotiation outcome. The suitable negotiation style on negotiation outcome may be helpful to increase negotiation outcome. The understanding the strongest negotiation style can provide more beneficial as well as weakness styles can also provide drawback. Furthermore, the significant responsibility of project manager is to identify the important issues for one’s side, and another side may be less important issues which can apply to possible value exchange concept.

6 comments:

Ron Kraybill, PhD, Riverhouse ePress said...

Thank you for posting this interesting research summary. I wonder if it would be possible to get a copy of the full paper? I'd particularly like to see which styles were used and what the results were for each.

I developed and now publish a conflict style inventory that is culturally flexible. It is based on the five-styles-of-conflict model of Mouton and Blake, (the same model that is also used by the Thomas-Kilmann conflict mode inventory). But we have added a feature that gives differing instructions to users depending on whether they come from collectivist or individualist cultural background.

We would welcome research to test the usefulness of this instrument in building capacity of construction managers to deal with managing conflicts in Thailand or anywhere in Asia. For example, researchers might work with a group of ten or twenty managers and give them a training workshop in negotiation styles. A second control group could also be identified and receive no training. A year later, data could be gathered comparing the outcomes of disputes for both groups to see whether the training had any impact. There are of course many other possible topics.

In order to encourage such research, we would be willing to provide free use of our conflict style inventory to a bona fide research project. You can learn more about our conflict style inventory, and in fact can request a free review copy by going to: conflictstylematters.com

Professional Project Management said...

Dear Ron

Pls give me your email address, we will send the electronic file of the thesis. And many thanks for your offer to use your conflict style inventory.

Regards
Hadikusumo

Bygningsentreprise said...

I am satisfied with your "NEGOTIATION ISSUES, STYLES AND OUTCOMES IN BUIDING CONSTRUCTION PROJECTS IN THAILAND". Its the best!

Unknown said...

I am working on an influencing/negotiation skill workshop for a construction company. May I have a copy of the full paper. Thanks.

Anas Shakeel said...

Hey Can I have a full copy of thesis? anshak02@gmail.com

Anonymous said...

May I have a copy too! pmitov2000@yahoo.com