The Conceptual Model of Construction and Real Estate Negotiation

• Authors: Vita Urbanavičienė , Artūras Kaklauskas , Edmundas K. Zavadskas

Title variants

LT

Koncepcinis statybos ir nekilnojamojo turto derybų modelis

Abstracts

EN

Negotiations are common in many activities; the sectors of construction and real estate are not an exception: here the negotiations are an inseparable part of the real estate buying and selling process. The article analyses scientific research related to negotiations and presents the developed model for multiple criteria analysis of construction and real estate negotiations. The analysis of the negotiation processes in construction and real estate and the analysis of the relevant support for decision-making in negotiations must be thorough; it must consider not only economic but also political, legal, socio-cultural, psychological, consumer behaviour, technological, quality of life and other issues. The developed model enables to analyse the combination of the real estate negotiation process, the improvement of its efficiency through use of decision support and voice stress analysis technology and the participating stakeholder groups seeking their goals together with the influencing external macro and micro environment. The paper dwells on the components of this model.

LT

Derybos nuolatos vyksta daugelyje veiklos sričių, neaplenkdamos ir statybos bei NT sektorių, kur jos yra neatsiejama nekilnojamojo turto pirkimo ir pardavimo proceso dalis. Straipsnyje analizuojami mokslininkų tyrimai derybų srityje ir pristatomas sukurtas statybos ir NT derybų daugiakriterinės analizės modelis. Nagrinėjant statybos ir NT derybų procesą bei taikomą paramą derybų sprendimams priimti, būtina tai nagrinėti išsamiai, kreipiant dėmesį ne tik į ekonominius, bet ir į politinius, teisinius, socialinius, kultūrinius, psichologinius, vartotojų elgsenos, technologinius, gyvenimo kokybės ir pan. klausimus. Sukurtas modelis leidžia analizuoti NT derybų procesą, jo efektyvumo didinimą, taikant sprendimų paramos ir balso analizės technologijas, joje dalyvaujančias ir savo tikslus norinčias įgyvendinti suinteresuotas grupes bei jas veikiančią išorinę makro- ir mikroaplinką kaip visumą. Straipsnyje aptartos sukurtą modelį sudarančios sudėtinės dalys.

Keywords

EN

Real estate; Construction; Negotiation; Behavioural decision research; Macro environment

• Publisher: Sciendo
• Journal: International Journal of Strategic Property Management
• Year: 2009
• Volume: 13
• Issue: 1
• Pages: 53-70

Contributors

author

Vita Urbanavičienė

• Department of Construction Economics and Property Management, Vilnius Gediminas Technical University, Saulėtekio al. 11, LT-10223 Vilnius, Lithuania

author

Artūras Kaklauskas

• Department of Construction Economics and Property Management, Vilnius Gediminas Technical University, Saulėtekio al. 11, LT-10223 Vilnius, Lithuania

author

Edmundas K. Zavadskas

• Department of Construction Technology and Management, Vilnius Gediminas Technical University, Saulėtekio al. 11, LT-10223 Vilnius, Lithuania

References

• Akdere, M. (2003) The action research paradigm: An alternative approach in negotiation,Systemic Practice and Action Research, 16(5), pp. 339-354.
• Barry, B. and Friedman, R.A. (1998) Bargainer characteristics in distributive and integrative negotiation,Journal of Personality and Social Psychology, 74(2), pp. 345-359.
• Bazerman, M.H. and Neale, M.A. (1992)Negotiating Rationally.New York: Free Press.
• Bazerman, M.H., Curhan, J.R., Moore, D.A. and Valley, K.L. (2000) Negotiation,Annual Review of Psychology, 51, pp. 279-314.
• Benyoucef, M. and Rinderle, S. (2006) Modeling e-negotiation processes for a service oriented architecture,Group Decision and Negotiation, 15(5), pp. 449-467.
• Brodt, S.E. (2006)Negotiation, Mediation, and Arbitration.[Online] In: Rogelberg, S.G. (ed.) Encyclopedia of industrial and organizational psychology. Available at:http://sage-ereference.com/organizationalpsychology/Abstract_n212.html
• Brzeski, W.J. (2005) The role and prospects of real estate brokerage.In: Proceedings of Real Estate Conference on Real Estate, Vilnius, Lithuania, 25-27 January 2005.
• Cohen, R. (1997)Negotiating Across Cultures: Communication Obstacles in International Diplomacy.Washington, DC: US Institute of Peace Press.
• Constructus (2004)"Constructus" baigė naujojo Vilniaus miesto savivaldybės centro statybą.[Online] Available at:http://www.constructus.lt/lt/naujienos//?entryid=300&metai=2008
• Crowston, K. and Myers, M.D. (2004) Information technology and the transformation of industries: three research perspectives,Journal of Strategic Information Systems, 13(1), pp. 5-28.
• Cummins, J.C. (1999)Not One Dollar More: How to Save 3,000 to 30,000 Dollars Buying Your Next Home.2ndEdition, New York: John Wiley and Sons.
• De Dreu, C.K.W. (2003) Time pressure and closing of the mind in negotiation,Organizational Behavior and Human Decision Processes, 91(2), pp. 280-295.
• De Dreu, C.K.W. and Carnevale, P.J. (2005) Disparate methods and common findings in the study of negotiation,International Negotiations, 10(1), pp. 193-203.
• De Dreu, C.K.W., Weingart, L.R. and Kwon, S. (2000). Influence of social motives on integrative negotiation: A meta-analytical review and test of two theories,Journal of Personality and Social Psychology, 78(5), pp. 889-905.
• Druckman, D. and Olekalns, M. (2008) Emotions in negotiations,Group Decision and Negotiation, 17(1), pp. 1-11.
• Gibler, K.M. and Nelson, S.L. (2003) Consumer behavior applications to real estate education,Journal of Real Estate Practice and Education, 6(1), pp. 63-83.
• Graham, I. and Gruneberg, S. (2000)The Economics of the Modern Construction Sector.London: Palgrave Macmillan.
• Gulliver, P.H. (1979)Disputes and Negotiations: A Cross-Cultural Perspective.Orlando, FL: Academic Press.
• Hipel, K.W. and Fraser, N.M. (1991) Cooperation in conflict analysis,Applied Mathematics and Computation, 43(2), pp. 181-206.
• Jensen, K. (2006)Derybų vadovas[Negotiation handbook]. Vilnius: Verslo žinios. (In Lithuanian)
• Kahneman, D. and Tversky, A. (1979) Prospect theory: An analysis of decision under risk,Econometrica, 47(2), pp. 263-291.
• Kahneman, D., Slovic, P. and Tversky, A. (1982)Judgements under Uncertainty: Heuristics and Biases.Cambridge: Cambridge University Press.
• Kaklauskas, A. (1999)Pastato gyvavimo proceso daugiakriterinė sprendimų paramos sistema[Multiple criteria decision support system for building life cycle]. Habilitation work, Vilnius: Technika. (In Lithuanian)
• Kaklauskas, A. and Zavadskas, E.K. (2002)Internetinė sprendimų parama[Web-based decision support]. Monograph, Vilnius: Technika. (In Lithuanian)
• Kaklauskas, A., Zavadskas, E.K., Banaitis, A. and Šatkauskas, G. (2007a) Defining the utility and market value of a real estate: a multiple criteria approach,International Journal of Strategic Property Management, 11(2), pp. 107-120.
• Kaklauskas, A., Gulbinas, A. Krutinis, M., Naimavičienė, J. and Šatkauskas, G. (2007b) Methods for multivariant analysis of optional modules used in teaching process,Technological and Economic Development of Economy, 7(3), pp. 253-258.
• Kaklauskas, A., Zavadskas, E.K. and Raslanas, S. (2005) Multivariant design and multiple criteria analysis of building refurbishments,Energy and Buildings, 37(4), pp. 361-372.
• Keeney, R. (1992)Value-focused thinking: a path to creative decision-making.Massachusetts: Massachusetts University Press.
• Kersten, G.E. and Noronha, S.J. (1999) WWW-based negotiation support: Design, implementation, and use,Decision Support Systems, 25(2), pp. 135-154.
• Keršulienė, V. (2008)Užsakovo ir rangovo racionalaus ginčų sprendimo būdo nustatymas lošimų teorijos metodais[Determination of the rational method of solutions in disputes by the contractor and client based on the game theory], Ph.D thesis, Vilnius: Technika. (In Lithuanian)
• Kremenuk, V.A. (Ed.) (1991)International Negotiation: Analysis, Approaches, Issues. San Francisco, CA: Jossey-Bass.
• Lax, D.A. and Sebenius, J. (1986)The Manager as Negotiator.New York: TheFree Press.
• Lepkova, N., Kaklauskas, A. and Zavadskas, E.K. (2008) Modelling of facilities management alternatives,International Journal of Environment and Pollution, 35(2/3/4), pp. 185-204.
• Lim, J. (2000) An experimental investigation of the impact of NSS and proximity on negotiation outcomes,Behavior and Information Technology, 19(5), pp. 329-338.
• McKenzie, D.J. and Betts, R.M. (2006)Essentials of Real Estate Economics.5thed. Mason, OH: Thompson Higher Education.
• Moran, S. and Ritov, I. (2007) Experience in integrative negotiations: What needs to be learned?,Journal of Experimental Social Psychology, 43, pp.77-90.
• Morris, M.W., Larrick, R.P. and Su, S.K. (1999) Misperceiving negotiation counterparts: when situationally determined bargaining behaviors are attributed to personality traits,Journal of Personal and Social Psychology, 77(1), pp. 52-67.
• Murtoaro, J. and Kujala, J. (2007) Project negotiation analysis,International Journal of Project Management, 25, pp. 722-733.
• National Development Institute (2006) Ar vyriausybė turėtų ką nors daryti būsto kainų augimui pažaboti? [Does the government need to do something in order to smash the real estate boost?] [Online] Available at:http://www.npi.lt/site/Failai/File/EEG_nekilnojamas%20turtas_galutinis.pdf
• Farlex (2008)Negotiation Theory. Common Assumptions of Most Theories.[Online] Farlex, Inc. The Free Dictionary. Available at:http://encyclopedia.thefreedictionary.com/negotiation+theory
• Nutt, P.C. (2007) Intelligence gathering for decision making,Omega-International Journal of Management Science, 35(5), pp. 604-622.
• Oxford Encyclopedia of Economic History (2006)Construction Markets.[Online] Available at:http://www.oxford-economichistory.com/
• Pruitt, D.G. (1995) Process and outcome in community mediation,Negotiation Journal, 11(4), pp. 365-377.
• Raiffa, H. (1982)The art and science of negotiation.Cambridge, MA: Harvard University Press.
• Rondeau, E.P. (1993) The art of the real estate deal,Facilities Design and Management, 12, pp. 44-45.
• Rubin, J.Z. and Brown, B.R. (1975)The Social Psychology of Bargaining and Negotiation.New York: Academic.
• Schoop, M., Köhne, F., Staskiewicz, D., Voeth, M. and Herbst, U. (2008) The antecedents of renegotiations in practice - an exploratory analysis,Group Decision and Negotiation, 17(2), pp. 127-139.
• Schoop, M. (2004) The Worlds of Negotiation. In: Aakhus, M. and Lind, M. (eds.)Proceedings of the 9thInternational Working Conference on the Language-Action Perspective on Communication Modelling, Rutgers University, The State University of New Jersey, New Brunswick, NJ, USA, 2-3 June 2004, pp. 179-196.
• Simon, H.A. (1957)Models of Man.New York: Wiley.
• Somerville, P. (1997) The social construction of home,Journal of Architectural and Planning Research, 14(3), pp. 226-245.
• Steinel, W., Abele, A.E. and De Dreu, C.K.W. (2007) Effects of experience and advice on process and performance in negotiations,Group Processes & Intergroup Relations, 10(4), pp. 533-550.
• Ströbel, M. and Weinhardt, C. (2003) The Montreal taxonomy for electronic negotiations,Group Decision and Negotiation, 12(2), pp. 143-164.
• Stuhlmacher, A.F., Citera, M. and Willis, T. (2007) Gender differences in virtual negotiation: Theory and research,Sex Roles, 57(5-6), pp. 329-339.
• The National Association of Realtors (2007)NAR Survey Shows Consumers Very Satisfied with Agent Performance.[Online] Available at:http://www.realtor.org/press_room/news_releases/2007/nar_survey_shows_consumers_very_satisfied
• The Nobel Foundation (2002)Foundations of Behavioral and Experimental Economics: Daniel Kahneman and Vernon Smith.[Online] The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2005. The Nobel Foundation. Available at:http://nobelprize.org/nobel_prizes/economics/laureates/2002/ecoadv02.pdf
• Thompson, L. and DeHarpport, T. (1994) Social judgment, feedback, and interpersonal learning in negotiation,Organizational Behavior and Human Decision Processes, 58(3), pp. 327-345.
• Tung, R.L. (2002) International business negotiations. In: Warner M. (ed.)The International Encyclopedia of Business and Management. 2nded. London: Thomson Learning.
• Tversky, A. and Kahneman, D, (1974) Judgment under uncertainty: Heuristics and biases,Science, New Series, 185(4157), pp. 1124-1131.
• Valley, K., Thomson, L., Gibbons, R. and Bazerman, M.H. (2002) How communication improves efficiency in bargaining games,Journal of Games and Economic Behavior, 38(1), pp. 127-155.
• Wierzbicki, A.P., Krus, L. and Makowski, M. (1993) The role of multiobjective optimization in negotiation and mediation support,Theory and Decision, 34(3), pp. 201-214.
• Young, H.P. (ed.) (1991)Negotiation Analysis.Ann Arbor: The University of Michigan Press.
• Zavadskas, E.K. and Kaklauskas, A. (2008) Model for Lithuanian construction industry development,Transformations in Business & Economics, 7(1), pp. 152-168.
• Zavadskas, E.K., Kaklauskas, A. and Kaklauskiene J. (2007) Modeling and forecasting of a rational and sustainable development of Vilnius: emphasis on pollution,International Journal of Environment and Pollution, 30(3-4), pp. 485-500.
• Zavadskas, E.K., Kaklauskas, A., Banaitis, A. and Kvederytė, N. (2004) Housing credit access model: the case for Lithuania,European Journal of Operational Research, 155(2), pp. 335-352.
• Zavadskas, E.K., Peldschus, F. and Kaklauskas, A. (1994)Multiple criteria evaluation of projects in construction.Vilnius: Technika.
• Zavadskas, E.K., Raslanas, S. and Kaklauskas, A. (2008) The selection of effective retrofit scenarios for panel house in urban neighborhoods based on expected energy saving and increase in market value: The Vilnius case,Energy and Buildings, 40(4), pp. 573-587.

Identifiers

DOI

10.3846/1648-715X.2009.13.53-70