In e na ional Jou nal o De elopmen al Issues in Educa ion & Humani ies
Bilingual Jou nal o he Facul y o Educa ion, Uni e si y o Buea
Volume 1, Issue 1 No embe –Decembe 2025, pp. 105-114
DOI: h ps://doi.o g/10.5281/zenodo.17687890
Copy igh : © The Au ho (s), 2025. Published by Facul y o Educa ion, Uni e si y o Buea. This is
an Open Access a icle, dis ibu ed unde he e ms o he C ea i e Commons A ibu ion 4.0
License (h p://c ea i ecommons.o g/licenses/by/4.0/), which pe mi s un es ic ed use,
dis ibu ion and ep oduc ion in any medium, p o ided he o iginal wo k is p ope ly ci ed.
. Page 105 o 114
THE ROLE OF NEGOTIATION IN REDUCING RISKS IN
CONSTRUCTION PROJECTS: A BRAZILIAN CASE
Mu illo Dias
*
Fundação Ge ulio Va gas, B azil.
Abs ac
The a icle conduc s a single case s udy h ough desc ip i e me hods o analyze how he
cons uc ion p ojec acqui ed i s elec ical ki s. The cons uc ion p ojec in Indaia uba
B azil needed p e-assembled elec ical ki s h ough i s conc e e wall cons uc ion me hod
so i equi ed u gen p ocu emen o hese componen s. The p ocu emen eam deal wi h
an in ica e nego ia ion si ua ion because di e en supplie s p o ided di e en p ice poin s
and deli e y condi ions and p oduc quali y le els. The nego ia ion p ocess o he eam
encoun e ed unexpec ed obs acles which endange ed he p ojec imeline. The eam needed
o c ea e new solu ions which would sa egua d p ojec essen ial equi emen s when
managing p ojec alue exceeding millions o dolla s. The esea ch in es iga es nego ia ion
me hods which show how s akeholde s use isk managemen o each hei objec i es
while ob aining maximum alue. The p ocu emen eam emains unce ain abou hei
ou come because hey need o comple e a con ac ha mee s p ojec needs bu hey ace
majo challenges o o e come.
Keywo ds:
Nego ia ion; P ocu emen ; Supply Chain Managemen ; Con ac Nego ia ion.
1. In oduc ion
O ganiza ions need nego ia ion skills as hei main compe ency o achie e success
in oday's business wo ld. Dias (2020) iden i ies ou nego ia ion app oaches ye Type II
nego ia ion ep esen s he undamen al me hod which business o ganiza ions need o use.
The model ollows a sys ema ic me hod which helps pa ies wo k oge he o achie e
bene icial esul s o all in ol ed. The ield enables Type II nego ia ion h ough h ee
undamen al esea ch s udies which alida e i s success ul applica ion. Baze man and
Moo e (1994) showed how pe sonal opinions a ec manage ial choices and Fishe and U y
(1981) es ablished ha p incipled nego ia ion p oduces ag eemen s which las while Lax
and Sebenius (1986) explained how nego ia ion p ocesses expe ience con lic ing o ces
be ween eamwo k and compe i ion. Resea ch indings show ha Type II nego ia ion wo ks
*
Co esponding au ho email: agenda.mu ill[email p o ec ed]om
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success ully ac oss di e en business en i onmen s. The esea ch by Dias e al. (The
esea ch by (2022) shows ha us and epu a ion ope a e as non-physical asse s which
impac he ou comes o nego ia ion p ocesses. The esea ch by Dias e al. (2023) shows ha
non e bal body language h ough hand mo emen s de e mines he success o nego ia ion
dialogues. The Type II nego ia ion app oach shows i s e ec i eness by wo king be ween
cons uc ion (Dias, 2023) and e ail pha macy (Valen e & Dias, 2023) and go e nmen
p ocu emen (Dias & Na a o, 2020) sec o s. Sebenius (2013) de elops Le el II
nego ia ions which equi e nego ia o s o help hei coun e pa s build s onge BATNA
(Bes Al e na i e o a Nego ia ed Ag eemen ) o c ea e mu ually bene icial ag eemen s.
Business nego ia ions depend on Type II nego ia ion as hei undamen al amewo k which
ecei es suppo om bo h heo e ical and p ac ical esea ch. O ganiza ions ha ollow
hese p inciples will imp o e hei decision-making abili ies while building s onge
pa ne ships which esul in sus ainable e ec i e ou comes, as illus a ed in he ollowing
Figu e 1:
Figu e 1 The Fou -Type Nego ia ion Ma ix
Sou ce: Dias, 2020. Rep in ed unde pe mission.
2. Ma e ials and Me hods
The esea ch design o his s udy employed quali a i e me hods acco ding o
Saunde s e al. (2009). The esea ch design consis s o a desc ip i e single-case s udy which
analyzes he nego ia ion be ween a elecommunica ions company and hei clien du ing a
consume lawsui acco ding o Yin (2004). The case s udy esea ch me hod enabled
esea che s o s udy nego ia ion p ocesses in dep h because i e ealed all he in ica e
elemen s ha a ec he p ocess. The single-case design allows esea che s o s udy he
comple e en i onmen o he nego ia ion p ocess which gene a es de ailed in o ma ion
abou he si ua ion. The esea ch pa icipan s ecei ed comple e p o ec ion h ough he use
o hei ac ual names and business iden i ies which emained con iden ial. The esea ch
eam ob ained da a h ough documen analysis o nego ia ion eco ds and conduc ed
in e iews wi h key s akeholde s who ac i ely pa icipa ed in he nego ia ion p ocess.
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The esea che used induc i e me hods o analyze da a which enabled hem o
disco e pa e ns and hemes in he collec ed in o ma ion. The analysis p ocess used
in e p e i e me hods o unde s and how pa icipan s in he nego ia ion p ocess in e p e ed
he si ua ion. The esea ch main ains comple e anspa ency h ough i s use o ac ual
company names and employee iden i ies om he o iginal nego ia ion scena io. The
esea ch main ains i s o iginal nego ia ion con ex h ough his decision because i ollows
bo h compliance equi emen s and e hical esea ch s anda ds which p o ec he
o ganiza ions and hei s akeholde s.
3. Con ex and Nego ia ion
The esiden ial de elopmen p ojec loca ed in São Paulo's in e io used conc e e
wall cons uc ion as i s building me hod because his me hod has become popula in he
indus y o i s ope a ional e iciency and a o dable cos s. The p ojec eam needed o
acqui e p e-assembled elec ical ki s which consis ed o cables and condui s and junc ion
boxes because hese ki s needed o be inse ed in o conc e e walls du ing cons uc ion. The
p ojec equi es immedia e p ocu emen o hese ki s because hey need o be placed inside
conc e e walls du ing cons uc ion. The p ocu emen eam aced an u gen si ua ion
because he acquisi ion eques a i ed a e he op imal ime which equi ed hem o ind
op imal p icing and deli e y and quali y e ms. The p ojec s akeholde s de ined h ee
nego ia ion equi emen s which included using app o ed cable b ands and checking
supplie inancial heal h and demanding supplie s o show inished p ojec examples o
p oduc pe o mance alida ion. The buye s e alua ed i e po en ial supplie s which
included h ee app o ed endo s and wo new endo s ha needed homologa ion
app o al. The supplie s o e ed p ice quo es o 400 ki s which anged om R$865,000 o
R$1,156,000 and equi ed deli e y imes be ween 20 o 30 days. The p ojec budge
es ablished R$1,075,000 as i s highes possible alue. The p ojec eam selec ed he
supplie who p o ided he mos a o dable p ice and me all deli e y equi emen s and
showed excep ional his o ical pe o mance. The inancial s abili y assessmen o he
supplie showed majo ou s anding deb s while se ice quali y epo s showed a
downwa d end.
The p ojec boa d ended he con ac wi h his supplie ela ionship because he
supplie demons a ed weak inancial s abili y and un eliable deli e y pe o mance. The
p ocu emen eam ound an unapp o ed supplie who main ained hei quo e wi hin he
es ablished budge pa ame e s. The eam held a di ec mee ing o es ablish all
equi emen s while checking bo h echnical and inancial s anda ds. The supplie p o ided
h ee addi ional bene i s o he ag eemen which included a p ice educ ion o R$1,065,000
and as e deli e y wi hin 20 days and immedia e deli e y o 30 ki s wi hin 10 days o
es ing pu poses. A single echnician was dedica ed ull ime o moni o he i s ins alla ion
p ocess while main aining quali y s anda ds. The nego ia ion eached success h ough
inancial ad an ages and p o ec i e measu es which de ended agains possible h ea s. The
selec ed supplie ul illed all necessa y condi ions a budge - iendly a es while b inging in
a esh business alliance ha would assis upcoming ini ia i es.
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4. Summa y o Findings on he Nego ia ion Dynamics
The possible ag eemen ange be ween R$1,075,000 and R$1,200,000 de ined he ZOPA.
The supplie p o ided echnical suppo o ins alla ion o enhance quali y assu ance as
pa o he non-mone a y alue exchange. The supplie p o ided wo deli e y concessions
which included sho e deli e y imes and ea ly deli e y o pa o he o de o help p e en
p ojec delays. The nego ia ion p ocess ollowed s akeholde equi emen s by e i ying
b and app o al and inancial s abili y and p ojec e e ences. The supplie p o ided p ice
educ ion and imp o ed deli e y e ms o he p ojec s akeholde s who accep ed highe
cos s han he lowes bid o isk educ ion pu poses. The eam e alua ed h ee di e en
op ions which included e-s a ing supplie nego ia ions and modi ying budge es ic ions
and implemen ing s anda d elec ical ins alla ion p ocedu es. The case shows how
p ocu emen nego ia ions be ween inancial e alua ion and isk con ol and ela ionship-
based us wo k oge he . The p ojec eached i s objec i es h ough supplie e i ica ion
and non- inancial ag eemen s which ans o med an unapp o ed supplie in o a
dependable business pa ne o upcoming p ojec s.
5. Discussion and Implica ions
The case s udy shows how inancial aspec s in cons uc ion p ojec s lead o in ica e
p ocu emen nego ia ions because hey in luence us de elopmen and isk managemen
and o ganiza ional planning. Baze man and Moo e (1994) showed h ough hei esea ch
ha manage s base hei choices on pe sonal judgmen bu hei nego ia ion ou comes ge
in luenced by men al dis o ions and es ic ed logical hinking (Webe , 2010). The
p ocu emen eam chose o ejec he supplie wi h he lowes bid because hey wan ed o
e alua e inancial s abili y ac o s which Rai a, Richa dson and Me cal e (2002) desc ibe as
essen ial o scien i ic and a is ic collabo a i e decision-making in nego ia ion.
The esea ch me hods o C eswell (2014) and Saunde s, Lewis, and Tho nhill (2009)
suppo he use o mixed-me hods and case s udy app oaches (Yin, 2004) o s udy complex
nego ia ion p ocesses. The esea ch example demons a es his me hod h ough he
combina ion o quan i a i e budge da a wi h deli e y imeline in o ma ion and quali a i e
assessmen s o us and supplie epu a ion and e e ence check esul s. The esea ch
design ollows Dess and Lumpkin (2003) who explained s a egic managemen h ough he
combina ion o inancial esou ces wi h non-mone a y business asse s.
The Fou -Type Nego ia ion Ma ix by Dias (2020) classi ies his si ua ion as Type II
nego ia ions because i needs o ganized eam wo k o de elop sha ed ad an ages.
The p ocu emen eam used s uc u ed e alua ion me hods o supplie s un il hey adop ed
si ua ional app oaches, as inancial isks eme ged, acco ding o Dias (2020c).
The nego ia ion p ocess in ol ed wo essen ial elemen s om Sebenius (2013),
Fishe & U y (1981), P ui (1981), and Lax & Sebenius (1986): he boa d's de ini ion o
budge a y ag eemen zones and supplie s' al e na i e op ions, which in luenced hei
nego ia ion lexibili y. The esea ch by Dias and Lopes (2021) shows us ope a es as he
main egula o y sys em which p oduces nego ia ion ou comes by c ea ing con idence ha
di ec s decision-making ac i i ies. The p ocu emen eam chose he supplie wi h he
In e na ional Jou nal o De elopmen al Issues in Educa ion and Humani ies 1(1):105-114 Mu illo Dias
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highes p ice because o hei inancial ins abili y which p o ed ha us unc ions as a
i al business asse ha goes beyond mone a y alue acco ding o Dias e al. (2022) and
Dias (2020b). San os and Dias (2024) show ha us de elops h ough open business
ope a ions and supplie epu a ion g ow h which now plays a c i ical ole in supplie
homologa ion. The new supplie gained c edibili y h ough di ec con ac which suppo ed
he esea ch indings o Dias and his colleagues (2023) abou non e bal nego ia ion
beha io s. The nego ia ion p ocess needed dispu e- esolu ion mechanisms (Dias, 2020d;
Dias e al., 2023) o pe o m ela ional epai , which b ough s akeholde s and he new
supplie in o alignmen . The nego ia ed concessions included p ice educ ions, as e
deli e y, and echnical assis ance, which demons a ed mu ual ad an ages, acco ding o
Shell (2006) and Salacuse (2003, 2006). The case s udy shows how nonma ke nego ia ion
o ces (Na a o & Dias, 2024) shape business decisions by le e aging ex e nal ac o s ha
impac co po a e epu a ion and ela ionships.
The nego ia ion p inciples de eloped by Dias and his eam (2020–2023) o
heal hca e and cons uc ion and go e nmen p ocu emen simula ions ha e achie ed
success in all se ings. Resea ch da a shows inancial elemen s do no de e mine nego ia ion
success because us -based ela ionships and epu a ion and adap able nego ia ion
echniques p oduce equi alen e ec s on indings. The esea ch example shows how
Za man (1988) nego ia ion elemen s wo k h ough communica ion and ela ionship
managemen and concession echniques which suppo Rubin and B own's (1975) indings
abou human social in e ac ion pe cep ion. The decision o choose eliabili y o e cos
demons a es ha Kissinge (1969) and Scha zki and Co ey (1981) endo se s a egic
planning o nego ia ions because i p oduces supe io ou comes han ocusing on sho -
e m cos educ ion. The case shows ha success ul p ojec nego ia ions need es ablished
amewo ks (Dias, 2020; Lax & Sebenius, 1986) and di e en esea ch me hods (C eswell,
2014; Yin, 2004) oge he wi h solid ela ionships be ween pa ies (Dias & Lopes, 2021;
San os & Dias, 2024). O ganiza ions ha manage inancial cons ain s and non-mone a y
business asse s will c ea e pa ne ships which b ing inancial s abili y and s a egic alue.
6. Conclusion
The esea ch shows ha cons uc ion p ojec p ocu emen nego ia ions need mo e
han inancial analysis because hey demand us de elopmen and isk managemen and
s a egic planning. The case s udy showed ha he supplie selec ion based on lowes p ice
did no wo k because he company's inancial ins abili y and de e io a ing se ice quali y
made hem unaccep able o he p ojec . The selec ion p ocess demons a es how
o ganiza ions need o e alua e bo h physical asse s and non-physical elemen s which
include inancial s abili y and epu a ion and us du ing hei nego ia ion ac i i ies. The
s akeholde s achie ed p ojec sus ainabili y h ough hei selec ion o eliabili y and long-
e m business po en ial ins ead o sho - e m cos educ ions. The nego ia ion p ocess
showed ha pa ies achie ed a sus ainable ag eemen h ough hei willingness o make
concessions which included p ice modi ica ions and deli e y accommoda ions and echnical
In e na ional Jou nal o De elopmen al Issues in Educa ion and Humani ies 1(1):105-114 Mu illo Dias
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assis ance. The esea ch demons a es ha success ul nego ia ion equi es mo e han p ice
op imiza ion because i needs o ind economic s abili y h ough s a egic sus ainabili y.
7. Fu u e esea ch
Fu u e esea ch is encou aged on moni o ing supplie ela ionships de eloped
unde inancially uns able condi ions will e eal he ex ended e ec s o isk-o ien ed
business choices. Resea ch is needed o examine he de elopmen o us on i ual
nego ia ion pla o ms as digi al communica ion sys ems con inue o expand hei use base.
Resea ch in o he de elopmen o i ual us would allow scien is s o de elop new
nego ia ion heo ies ha can unc ion on digi al pla o ms. The esea ch ac i i ies will
s eng hen nego ia ion heo y while p o iding ope a ional solu ions o o ganiza ions ha
manage complex supply ne wo ks and global ma ke s wi h inancial cons ain s and
ela ionship-based us equi emen s.
Acknowledgemen s
We wan o exp ess ou since e g a i ude o Ma ina Zona o o p o iding he
in o ma ion ha led o he de elopmen o his a icle. He con ibu ion was undamen al o
he ealiza ion o his esea ch and o he unde s anding o he nego ia ion p ocess in
ques ion.
E hical issues
The au ho s a es ha his a icle aises no e hical issues o conce ns abou
noncompliance. The esea ch ollowed es ablished e hical guidelines, p o ec ing
pa icipan s' iden i ies and company names h ough anonymiza ion o mee e hical
s anda ds and main ain con iden iali y.
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