From Positions to Interests:Strategic Negotiation in a Soy Processing Plant Project

This article presents a descriptive case study of a negotiation surrounding the construction of a soybean crushing plant in Mato Grosso do Sul, center western Brazil. The engineering firm neededto handle an intricate communication process with their international contractor who operated through a joint venture that used a package segregation approach for electrical and mechanical and structural work. The company started with a complete electrical project which included design work and material supply and panel installation and labor costs and automation systems but the following discussions brought the project down to basic labor work while the client wanted to buy all materials from foreign suppliers. The transition brought essential problems which included following regulations and obtaining technical approval and dealing with supply chain disruptions and delivery complexities. The company took two steps to solve the problem through customer disclosure of hidden costs and creating new solutions which united process integration with risk management to deliver the highest possible value. The negotiation remains unresolved because it is unknown whether financial limitations or joint solutions will determine the final outcome.