Abstract:
Effective resolution of dispute is always helpful for sustainable construction practices. However, it is
experienced that parties continuously failing to reach settlements in an effective and efficient manner.
Although many researches write on how to carryout negotiations successfully those concepts hardly
adopted in construction dispute negotiations. Construction dispute negotiations are different to other
business negotiations due to some unique features inherited such as complexity, regulated by contract,
and tendency of discouraging claims. Therefore, it is identified new theories need to be developed and
applied in construction dispute negotiations. Thus, the study was focused on improvement of
fundamental principles of negotiation to address characteristics of construction projects.
The study was approached through a multiple case study and in-depth study was carried out on two
selected cases which claims based dispute negotiation successfully concluded. Success factors of
claims based dispute negotiation identified through literature review compared with actual setting of
selected cases. Further, it was identified how parties have addressed special characteristics of claims
based disputes in construction projects when conducting negotiations.
Analysis reveals that, how far theory can be explained through research findings and which theory
should be extended based on knowledge explored. Accordingly conceptual framework had been
developed and it is concluded that the negotiation process shall be merged with characteristics of
construction disputes in order to achieve win-win settlement through negotiation. Major deviation
from existing theory when applying to claims based dispute negotiation in a road project is negotiation
shall be based on both position and interest of the parties.
