Value-based analysis of the negotiation for the construction of a church dome

Mario Luis Chew Hernández; Leopoldo Viveros Rosas; Raúl Gómez  Gómez-Tagle

doi:10.59400/be.v2i1.1247

Value-based analysis of the negotiation for the construction of a church dome

Mario Luis Chew Hernández Department of Industrial Engineering, TeCNM: Tecnológico de Estudios Superiores de Coacalco, Coacalco de Berriozábal 55700, Mexico
Leopoldo Viveros Rosas Department of Industrial Engineering, TeCNM: Tecnológico de Estudios Superiores de Coacalco, Coacalco de Berriozábal 55700, Mexico
Raúl Gómez Gómez-Tagle Department of Industrial Engineering, TeCNM: Tecnológico de Estudios Superiores de Coacalco, Coacalco de Berriozábal 55700, Mexico

Ariticle ID: 1247

26 Views, 16 PDF Downloads

DOI: https://doi.org/10.59400/be.v2i1.1247

Keywords: negotiation; decision analysis; construction

Abstract

In the construction industry, the signing of contracts between contractors and clients is a common practice. The entities signing these contacts have vastly different objectives in the context of the project: the contractor is motivated by the achievement of profit, while the client has objectives that can be economic, aesthetic, related to completion time, etc. According to negotiation theory, the greater the difference between the objectives of the sides, the better the contracts that can be achieved in the negotiation. Therefore, the analysis of a contractor-client negotiation in the building industry should be based on a complete understanding on the objectives of the sides. Kenney’s Value-Focused Thinking (VFT) provides a framework on which such understanding can be achieved. This paper presents a VFT based methodology to analyze the contractor-client negotiations in the context of construction projects. The methodology is illustrated by analyzing, in retrospective, the negotiation between a construction company and a client, regarding the construction of a dome for a church. The results show the usefulness of analyzing the negotiation from the point of view of the sides’ objectives.

References

[1] Keeney RL. Value-Focused Thinking. USA: Harvard University Press; 1992.

[2] Verheij H, Augenbroe G. Collaborative planning of AEC projects and partnerships. Automation in Construction. 2006; 15(4): 428-437. doi: 10.1016/j.autcon.2005.06.011

[3] Murtoaro J, Kujala J. Project negotiation analysis. International Journal of Project Management. 2007; 25(7): 722-733. doi: 10.1016/j.ijproman.2007.03.002

[4] Branconi CV, Loch CH. Contracting for major projects: eight business levers for top management. International Journal of Project Management. 2004; 22(1): 119-130. doi: 10.1016/S0263-7863(03)00014-0

[5] Koskinen KU, Mäkinen S. Role of boundary objects in negotiations of project contracts. International Journal of Project Management. 2009; 27(1): 31-38. doi: 10.1016/j.ijproman.2007.10.006

[6] Oliveira RAF, Lopes J, Abreu MI. Insights from a project procurement strategy through an action research. Procedia Computer Science. 2021; 181: 1002-1010. doi: 10.1016/j.procs.2021.01.275

[7] Lippman SA, McCardle KF, Tang CS. Using Nash bargaining to design project management contracts under cost uncertainty. International Journal of Production Economics. 2013; 145(1): 199-207. doi: 10.1016/j.ijpe.2013.04.036

[8] Tosselli L, Bogado V, Martínez E. A repeated-negotiation game approach to distributed (re)scheduling of multiple projects using decoupled learning. Simulation Modelling Practice and Theory. 2020; 98: 101980. doi: 10.1016/j.simpat.2019.101980

[9] Ng ST, Li W. A parallel bargaining protocol for automated sourcing of construction suppliers. Automation in Construction. 2006; 15(3): 365-373. doi: 10.1016/j.autcon.2005.07.004

[10] Shang T, Zhang K, Liu P, et al. What to allocate and how to allocate?—Benefit allocation in Shared Savings Energy Performance Contracting Projects. Energy. 2015; 91: 60-71. doi: 10.1016/j.energy.2015.08.020

[11] Tang Y, Chen Y, Hua Y, et al. Impacts of risk allocation on conflict negotiation costs in construction projects: Does managerial control matter? International Journal of Project Management. 2020; 38(3): 188-199. doi: 10.1016/j.ijproman.2020.03.002

[12] Kang CC, Feng CM, Kuo CY. A royalty negotiation model for BOT (build-operate-transfer) projects: The operational revenue-based model. Mathematical and Computer Modelling. 2011; 54(9-10): 2338-2347. doi: 10.1016/j.mcm.2011.05.042

[13] Zhang X, Bao H, Wang H, et al. A model for determining the optimal project life span and concession period of BOT projects. International Journal of Project Management. 2016; 34(3): 523-532. doi: 10.1016/j.ijproman.2016.01.005

[14] Bao H, Peng Y, Ablanedo-Rosas JH, et al. An alternative incomplete information bargaining model for identifying the reasonable concession period of a BOT project. International Journal of Project Management. 2015; 33(5): 1151-1159. doi: 10.1016/j.ijproman.2014.12.004

[15] Song J, Jin L, Zhao Y, et al. Using bargaining-game model to negotiate compensation for the early termination of BOT highway projects. Transportation Research Part A: Policy and Practice. 2017; 105: 197-209. doi: 10.1016/j.tra.2017.06.017

[16] Chen YM, Wang SC. An evolutionary compensatory negotiation model for distributed dynamic scheduling. Applied Soft Computing. 2008; 8(2): 1093-1104. doi: 10.1016/j.asoc.2007.05.018

[17] Badenfelt U. Fixing the contract after the contract is fixed: A study of incomplete contracts in IT and construction projects. International Journal of Project Management. 2011; 29(5): 568-576. doi: 10.1016/j.ijproman.2010.04.003

[18] Miranda-Sarmento J, Renneboog L. Renegotiating public-private partnerships. Journal of Multinational Financial Management. 2021; 59: 100661. doi: 10.1016/j.mulfin.2020.100661

[19] Kumar R, Rangan US, Rufín C. Negotiating complexity and legitimacy in independent power project development. Journal of World Business. 2005; 40(3): 302-320. doi: 10.1016/j.jwb.2005.05.006

[20] Stapper EW. Contracting with citizens: How residents in Hamburg and New York negotiated development agreements. Land Use Policy. 2021; 111: 105743. doi: 10.1016/j.landusepol.2021.105743

[21] Adebayo E, Werker E. How much are benefit-sharing agreements worth to communities affected by mining? Resources Policy. 2021; 71: 101970. doi: 10.1016/j.resourpol.2020.101970

[22] Jalbert K, Dickinson KL, Baka J, et al. Influence in the right-of-way: Assessing landowners’ risk decision-making in negotiating oil and gas pipeline easements. The Extractive Industries and Society. 2023; 14: 101276. doi: 10.1016/j.exis.2023.101276

[23] Clemen RT. Making Hard Decisions: an introduction to Decision Analysis. USA: Duxury Press; 1996.

[24] Hammond JS, Keeney RL, Raiffa H. Smart Choices. USA: Harvard Business School Press; 1999.

[25] Edwards W, Miles RF, von Winterfeldt D. Advances in Decision Analysis. USA: Cambridge Univ. Press; 2007.

[26] Raiffa H. Negotiation analysis: the science and art of collaborative decision making. USA: Harvard University Press; 2007.

Published

2024-06-19

How to Cite

Chew Hernández, M. L., Viveros Rosas, L., & Gómez-Tagle, R. G. (2024). Value-based analysis of the negotiation for the construction of a church dome. Building Engineering, 2(1), 1247. https://doi.org/10.59400/be.v2i1.1247

Download Citation

Issue

Vol. 2 No. 1 (2024)

Section

Article

This work is licensed under a Creative Commons Attribution 4.0 International License.

Authors contributing to this journal agree to publish their articles under the Creative Commons Attribution 4.0 International License, allowing third parties to share their work (copy, distribute, transmit) and to adapt it for any purpose, even commercially, under the condition that the authors are given credit. With this license, authors hold the copyright.

Editor-in-Chief

Prof. Scholz Miklas
University of Johannesburg, South Africa

eISSN

3029-2670

Publication Frequency

Bi-annual

About the Publisher

Academic Publishing insists on taking academic exchange and publication as the main line, carrying out comprehensive management based on science and technology, and fully exploring excellent international publishing resources. Within 5 years, it will form a strategic framework and scale with science (S), technology (T), medicine (M), education (E), and humanities and arts (H) as the main publishing fields. Academic Publishing is headquartered in Singapore and based in Malaysia, with the United States and China providing the main scientific and academic resources. At the same time, it has established long-term good cooperative relations with other publishing companies, scientific research communities, and academic organizations in more than a dozen countries and regions. Academic Publishing uses English and Chinese as its main publishing languages, mainly publishing books, journals, and conference papers in print and online. The vast majority of publications follow the international open access policy, providing stable and long-term quality and professional publications. With the joint efforts of the expert team and our professional editorial team, our publications will gradually be indexed by international databases in stages to provide convenient and professional retrieval for various scholars. At the same time, manuscripts we accept will be subject to the peer review principle, and cutting-edge and innovative research articles will be preferentially accepted for peer reference and discussion. All kinds of our publications are welcome for peer to contribute, access, and download.

more

Volume Arrangement

2024

Vol 2, No 1 (2024)

2023

Vol 1, No 1 (2023)

Featured Articles

Comprehensive seismic loss model of Tehran, Iran in the case of Mosha fault seismic scenario using stochastic finite-fault method

This paper presents the results of a study caried out to assess probable seismic loss, in term of damage to the residential buildings and the number of fatalities, in the case of Mosha Fault seismic scenario in Tehran, Iran. Accordingly, seismic risk components (including seismic hazard, exposure model and fragility curves) are evaluated. The stochastic finite-fault method with dynamic corner frequency is applied for quantifying ground motion values. The results shows that PGA on the soil surface could range between 0.1 g to 0.45 g. Then, a reliable model of building exposure by analyzing census data from Tehran is compiled. This model included 19 different classes of buildings and is used to evaluate the potential damage to buildings from seismic scenario. The results indicate that the median of damage ratio from 100,000 iterations for the whole of the city is about 6% ± 1.54%. The study found that the central and eastern parts of Tehran are the most vulnerable areas, with an estimated 15,952 residents at risk of losing their lives in this scenario. This is equivalent to 0.2 percent of total population of Tehran. The finding from this study can be used by local authorities to provide appropriate emergency-response and preparedness plans in the case of Mosha Fault seismic scenario.

Considerations for the effective management of LANs in hospital buildings

According to a joint survey conducted by the Ministry of Internal Affairs and Communications and the Ministry of Health, Labour, and Welfare of Japan, over 90% of Japanese hospitals have introduced wireless LAN. However, about half of the hospitals that have wireless LANs have reported having experienced problems, with the most common cause being inappropriate management of signal propagation. Other factors include an excessive number of terminals connected to one AP, an information load that approaches or exceeds the limits of the network’s capacity, and a lack of information sharing during design and construction. There is also a move towards converting in-hospital PHS, which has been used mainly for nurse calls, to smartphones, which also provide voice communication over a wireless LAN. Furthermore, the number of medical devices with wireless LAN communication functions is increasing. In recent years, issues have emerged regarding the coexistence of wireless LANs used by patients. This includes security aspects, as with problematic operation of wireless LANs. The above could become even more significant considerations in future wireless LAN utilization. In this paper, we summarize issues we have identified, clarify their causes, and present possible future problems and current and future measures to be taken for their solution.

Digital transformation of quality management in the construction industry during the execution phase by integration of building information modeling (BIM) and cloud computing

The quality of construction projects significantly impacts social and economic development. However, low quality and project failure often result from factors such as lack of quality procedures, poor communication, task coordination, and inefficient progress monitoring. This research aims to improve the efficiency of the construction phase by creating quality control checklists for processes and enhancing quality management through a collaborative digital environment integrating building information modeling (BIM) and cloud computing. Expert constructive interviews were first conducted to define a construction process quality control procedure to be linked to the 3DBIM model and then transition to a collaborative cloud environment (Autodesk Construction Cloud). An actual instance in Latakia City (Syria) demonstrated that the proposed methodology improves the efficiency and effectiveness of quality management during the implementation phase. It does so by offering a robust database, enhancing on-site quality information extraction from BIM models using smartphones, documenting defects and entering inspection data directly into a shared digital environment, and making it easier to track corrective actions and feedback. This facilitates constant and organized access to current data, reducing errors and rework, saving money and time, and enhancing decision-making speed and effectiveness. The search recommends the necessity of strict laws to adhere to quality procedures and the importance of providing infrastructure for digital transformation in quality management.

Net zero energy analysis and energy conversion of sustainable residential building in Muscat, Oman

The building sector is the predominant consumer of primary energy globally. The building sector accounts for around 40% of global energy production.Net Zero Energy Buildings (NZEBs) are highly suggested by energy experts as an effective option to alleviate the strain on primary energy sources caused by the building sector. The disparity between energy performance predictions provided during the design phase and the actual energy performance of residential buildings is mostly attributed to a limited comprehension of the components that influence energy consumption and the constraints of whole building simulation software. The objective of this research was to perform a comparison analysis of the expected and actual energy consumption of a prototype net-zero energy house built at the University of Technology and Applied Sciences in Muscat. The Hourly Analysis Programme (HAP V4.2) was utilised to forecast the energy consumption of a Net Zero Energy Building (NZEB) at HCT, taking into account the availability of an Energy Recovery Ventilator (ERV) and the absence of an ERV. The newly built house underwent a one-month testing phase to fulfil many duties according to competition regulations. One of the main goals was to generate on-site energy through photovoltaic panels, producing an amount proportional to the energy consumed by the house. Upon comparing the actual energy consumption data with the simulated result, it was noticed that the actual energy demand of the house was around 20% lower than the prediction made by the simulation tool.

Architecting sustainability performances and enablers for grid-interactive efficient buildings

Today, grid-interactive efficient buildings are gaining popularity due to their potential sustainability performances through their ability to learn, adapt, and evolve at different scales to improve the quality of life of their users while optimizing resource usage and service availability. This is realized through various practices such as management and control measures enabled by smart grid technologies, interoperability, and human-cyber-physical security. However, despite their great potential, the research of those technologies still faces various challenges. These include a lack of communication and control infrastructure to address interpretability, security, cost barriers, and difficulties balancing occupant needs with grid benefits. Initially, system modelling and simulation are promising approaches to address those challenges ahead of time. It involves the consideration of complex systems made up of components from various research domains. This paper addresses the above practices, highlighting the value of integrating technology and intelligence in the planning and operation of buildings, both new and old. It provides a way to educate architects and engineers about this emerging field and demonstrates how these practices can help in creating efficient, resilient, and secure buildings that contribute to occupant comfort and decarbonization.