ABSTRACT
In the construction industry, negotiation is preferred for the settlement of claims (Powell-Smith and Stephenson, 1993). Negotiation plays an important role in resolving claims, preventing disputes and keeping a harmonious relationship between project participants. However, claims negotiations are commonly inefficient due to the diversity of intellectual backgrounds, many variables involved, complex interactions and inadequate negotiation knowledge of construction participants. Most project managers consider negotiation as the most time and energy-consuming activity in claims management (Hu, 1997). Inefficiencies in negotiation make claims resolution much more difficult and adversarial and may delay resolution or even lead to expensive litigation (Zack, 1994). Thus, it is necessary to develop an approach to facilitate claims negotiation to reduce the tremendous time and human resources invested.
