Chestnut Village Negotiation


Photo by Igor Ovsyannykov on Unsplash

This was a successful negotiation. It was fairly calm and both parties got a good deal.

I was representing the Bunyon Construction Company along with my colleagues Paloma, Mathilde and Fréderic. I was Chris Bunyon, senior VP. I was happy with the part I got because I think I'm a natural leader and according to my colleagues I was able to keep the negotiation going, trying my best to keep everyone calm so that the exchange between the company and the residents of Chestnut Drive would be productive. I have to say it wasn't easy at times when, for example, the residents complained about things we had no idea had happened (the crack in the shopkeeper's house) or when one of our VPs started making witty remarks that angered the other party.

Preparation time was very helpful; time flew by when we were trying to guess what both party's positions and interests were. We managed to establish the issues we would talk about, prioritize them (which wasn't easy because everything is connected), and find out which compromises we were willing to make. After some back and forth, we went onto the negotiation all agreeing on the same terms. The other party said we never contradicted ourselves, which is a very nice compliment. We made sure to take a few breaks to re-evaluate what we could offer them. I am very happy with the work of my team mates: they were all well prepared and informed me of issues and some possible conflict resolution ideas that I hadn't thought of. I think we all got to talk during the negotiation, at least I tried to make sure we did. The other side was also very respectful but tough on us: they said we didn't care about the people, that we were unreachable (telephone calls weren't answered etc).

In the end, both parties wrote up an informal agreement on which we agreed to the following:

  • Bunyon Company committed to build fences with lights around the construction site's perimeter, to avoid people and specially children from wandering in and injuring themselves or worse. This would be built by the village's carpenter, and it will cost $1,500. It will need to be built in two weeks time.
  • The company also agreed to improve its recruitment and screening process, because the residents complained that construction workers were rude and uncivilized (they peed in the woods), truck drivers drove above the legal speed limit for a residential area putting children at risk. We committed to fire the workers who didn't follow the company's security guidelines.
  • In exchange, the residents promised to schedule a meeting in order to inform the other residents about these decisions and to warn them not to vandalize the site, or we would press legal charges. They will make sure the company's reputation doesn't suffer from bad press.
  • They also agreed to not block the project, so there would be no delays.

The only issue left to resolve was the crack in the shopkeeper's house. We established a meeting in three-weeks time, after two experts (one from the Bunyon company and another hired by the shopkeeper) analyzed the house to determine if it was indeed caused by the construction work (namely the removal of the granite ledge). If they find out it is in fact caused by the construction, then the company will have to compensate the shopkeeper, and everyone else who has the same problem. It will have to be renegotiated, but the price of each person's compensation will be between $200 and $500. We exchanged contact info between the lawyer and the company's legal department so a formal letter of promise could be written and signed by both parties.

To conclude, both parties got a good deal:
  • the residents were able to make us build a fence so they protected their children, and one of them (the carpenter) is getting paid for the work. They were also fine with not having access to the complex's sport and leisure facilities (we were ready to offer them membership cards if they pressed on this question). They might also get compensation for the cracks in the shopkeeper's house (we were also thinking of offering him a 5% discount on the purchase of a house on our complex).
  • the Bunyon company was able to avoid strikes or blockages of the construction site, keep the construction going on schedule avoiding delays and going over budget. We will have to pay for fences but this is much less than what we were expecting them to ask for (the construction of an alternative access road, which would cost around $100,000). Even if we have to pay for the compensation, we will still remain in budget. Finally, our reputation will be restored.



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