A multicriteria additive model to support negotiations: An application in the construction industry

The process of negotiation between buyers and suppliers has different objectives conflicting with each other beyond issues related to the price of a product or service. In this scenario, each party develops his/her own strategy, normally using a win-lose approach. In some situations the final outcome of negotiation implies in a loss for both, which can influence others issues involved in the process beyond price. The objective of this paper is to present a multicriteria additive model to support a bilateral and multi-issue negotiation between a buyer and a material supplier (seller). Moreover, it is presented an application of the model in the construction industry. The main contribution of the paper is related to structuring and standardizing a multi-issue negotiation support system which tackles how best this industry might contract suppliers. The results indicate that it is possible to develop win-win strategies and to establish a better outcome for both parties.