Level 2 - Communication and negotiation

Question 1

What are the 7 deadly sins of PowerPoint presentation?

Answer 1

1. Steals attention
2. too much text on the screen
3. Used to serve too many purposes – visual aid, speaker prompt, handout, takeaway document
4. Every slide looks the same

Question 2

How would you prepare for a negotiation?

Answer 2

• Understand why the negotiation was taking place.
• Clarify the impact e.g. the importance of the relationship vs the outcome.
• Define what is negotiable and what is not.
• Define a ‘win-win’ and fall back positions.
• Understand or estimate the other parities ‘win-win’ and fall back positions.
• Identify areas of common ground.
• Prepare evidence and rationale to support my case.

Question 3

What is a ‘win-win’ situation?

Answer 3

• When the agreement reached cannot be improved further by any discussions.
• Outcome cannot be improved for your benefit, and similarly, the agreement for the other party cannot be improved further for their benefit either.
• There is no value left on the table and all creative options have been thoroughly explored and exploited.

Question 4

How would you conduct a negotiation?

Answer 4

• Rehearse my opening – ask the opening question to control negotiation.
• Convey confident, congruent communication – match body language and terms used, maintain eye contact.
• Manage expectations – Trade at low value, do not give a concession without trading it with reluctance.
• Be respectful but persistent – Assess offers on the spot and be courteous.
• Questioning – Ask open and closed questions to exert control.

Question 5

What are the tools of a negotiator?

Answer 5

• Position power.
• Expertise or knowledge.
• Charisma.
• Having alternative solutions prepares.
• Using past events as a precedence.

Question 6

What is a dashboard?

Answer 6

A one-page, high level summary report issued weekly or fortnightly that details key issues using a red, amber and green traffic light system.
•	Programme.
•	Cost (including changes).
•	Quality.
•	Risks.
•	Actions required.
•	Future events (short term).

Question 7

N1. What Stages of a construction project might involve negotiations?

Answer 7

• Tendering and procurement.
• Agreeing Variations.
• Agreeing Final Accounts.
• Extensions Of Time.
• Payment Terms.
• Loss and Expense.
• Basically anything that will make an adjustment to the contract sum.

Question 8

N2. Can you explain some alternative negotiation strategies?

Answer 8

• Negotiating a Win/Win situation.

* Negotiating to reach a mutually satisfying agreement between both parties.

Question 9

N3. Do you know of any theory on negotiation?

Answer 9

The Thomas and Kilman approach:

To take a more people approach to disputes, with 5 types of responses:

1. Compete whereby you pursue your own interests.
2. Accommodate whereby you satisfy the other parties interests.
3. Avoid whereby you try to avoid the conflict all together.
4. Collaborate whereby you reach and agreement to satisfy both parties.
5. Compromise whereby you reach a mutually agreeable solution for both parties.

Question 10

N4. How do you ensure that you are successful in a negotiation?

Answer 10

• Preparation;

I will always review my arguments, produce and provide back-up information for each point. This allows me to negotiate my points confidently.

This allows me to know my bottom line.

Question 11

N5. How should you record an agreement at the end of negotiating?

Answer 11

• Either get both parties to sign the agreement.

* Or produce a written confirmation, i.e. via email of the agreements made.

Question 12

N6. What is working ‘open book’?

Answer 12

• A transparent process that encourages all stakeholders to work in a collaborative manner, as all the costs are seen by the client.

Question 13

N7. What needs to be included within a Loss and Expense claim with regards to the information provided?

Answer 13

• The main events that are relevant to the Loss and Expense and how they affected the works. This should be listed in chronological order.
• Cross Reference the claim with the appropriate clause in the contract.

Question 14

N8. What are the Loss and Expense Heads of Claims?

Answer 14

• Preliminaries.
• Overheads.
• Loss of Profit.
• Finance Charges.
• Interest.
• Standing Plant.

Question 15

N9. What are considered to be the four stages of negotiation?

Answer 15

• Preparation.
• Exchange.
• Bargain.
• Agreement/Implementation.

Question 16

N10. What is the purpose of maintaining good records?

Answer 16

• To ensure that if a disagreement arises between two parties, evidence for your side of the argument can be provided.

Question 17

N2.1 n your submission you mention that you produced the tender documentation for the Horsham Project, how did you ensure the tender documents were clear?

Answer 17

• Checked by senior colleague and client

- Documented correspondence between myself and contractor via councils tendering system (clarifications)

Question 18

N2.2 Can you give an example of when you have been involved with a negotiation?

Answer 18

• Negotiation with sub-contractors at Crest Nicholson. E.g. Final account for thin-joint package
• Negotiation with sub-contractors at Crest Nicholson . E.g. Variations with dry-lining contractor
• Negotiation with contractor for rubbish removal at Coventry demolition
• Negotiation with contractor for extension of time on Coventry Demolition

Question 19

N2.3 How did you prepare for these negotiations you have been involved in?

Answer 19

• For the Final Account meetings, I reviewed all outstanding variations to ensure I was up-to-speed with all the information relating to each. From this I was able to use a collaborative approach towards agreeing these variations and the final account, to ensure both party’s objectives were met.
• With regards to negotiating variations at Ringers Road, I reviewed the contract documents to ensure where a variation had not been instructed, it was a genuine claim under the contract. By reviewing this information I was able to negotiate my position confidently to get the variations agreed.
• With regards to negotiating extension of time, I reviewed the contract for the correct procedure.
• Regarding the rubbish removal. Discussed with cost consultant and contractors commercial manager

Question 20

N2.4 What methods of negotiation do you know of?

Answer 20

The Thomas and Kilmann approach, which is a people first approach with 5 methods.

1. Competitive = negotiating to satisfy your own objectives.
2. Accommodating = negotiating to satisfy the other parties objectives.
3. Avoiding = trying to avoid the negotiation all together.
4. Collaborating = Negotiating together to reach an appropriate settlement.
5. Compromising = Negotiating to reach an amicable settlement for both parties.

Question 21

N2.5 How do you ensure an agreement is recorded?

Answer 21

• I will either document via email after the event.
• Or I will get both parties to sign the agreement in person.
• This avoids any ambiguity over what was agreed.

Question 22

N2.6 Who do you go about establishing your objectives for a negotiation?

Answer 22

• Depending on what it is, but I will typically review my bottom line for whatever I am negotiating. I.e. if negotiating my Final Account with a Client, I will review my costs to date so I can negotiate my position confidently.

Question 23

N2.7 What do you see the stages of negotiation being?

Answer 23

1. Preparation
2. Exchange
3. Bargaining
4. Closure.