THE ROLE OF NEGOTIATION IN REDUCING RISKS IN CONSTRUCTION PROJECTS: A BRAZILIAN CASE

The article conducts a single case study through descriptive methods to analyze how the construction project acquired its electrical kits. The construction project in Indaiatuba Brazil needed pre-assembled electrical kits through its concrete wall construction method so it required urgent procurement of these components. The procurement team dealt with an intricate negotiation situation because different suppliers provided different price points and delivery conditions and product quality levels. The negotiation process of the team encountered unexpected obstacles which endangered the project timeline. The team needed to create new solutions which would safeguard project essential requirements when managing project value exceeding millions of dollars. The research investigates negotiation methods which show how stakeholders use risk management to reach their objectives while obtaining maximum value. The procurement team remains uncertain about their outcome because they need to complete a contract that meets project needs but they face major challenges to overcome.