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 multiissue 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.