Mutual Gains Negotiations
Training Outline
January 16 2013
ACEC/PA
AM ERIC AN C O UN C IL O F EN G IN EERIN G C O M PAN IES
of Pennsylvania
What Is Mutual Gains Negotiations?
Mutual Gains Negotiations is a collaborative
approach to negotiating contracts, involving a
consensus-building team approach to developing
scope and associated level of effort.
2
ACEC/PA
AM ERIC AN C O UN C IL O F EN G IN EERIN G C O M PAN IES
of Pennsylvania
Course Objective
• Gain a useful and practical understanding of
concepts of the Mutual Gains Negotiation process,
strategies, techniques, and purpose
• Develop the ability to apply Mutual Gains concepts
and techniques to Consultant Agreements and
everyday negotiations
3
ACEC/PA
AM ERIC AN C O UN C IL O F EN G IN EERIN G C O M PAN IES
of Pennsylvania
What Is Negotiation?
• Negotiation is a dialogue between parties, intended
to reach an understanding, resolve differences and
produce an agreed upon course of action
• Negotiation protects the interests of all parties
• Negotiation is a critical step toward the successful
completion of any Project
4
ACEC/PA
AM ERIC AN C O UN C IL O F EN G IN EERIN G C O M PAN IES
of Pennsylvania
Negotiation Is NOT….
• A contest or game
• A method of determining a winner and loser
• A means of carrying out a personal vendetta or
grudge
• A “one-size fits all” formula
5
ACEC/PA
AM ERIC AN C O UN C IL O F EN G IN EERIN G C O M PAN IES
of Pennsylvania
Negotiations Fail When:
• Mutual agreement is not achieved
• Preconceived arguments or positions enter into the
process
• Focus on advancing the Project is lost
• Relationships are damaged
6
ACEC/PA
AM ERIC AN C O UN C IL O F EN G IN EERIN G C O M PAN IES
of Pennsylvania
Why Negotiations Fail
• We let “what we have always done” dictate what
we do today
• Negotiations are viewed as a trade-off process
(zero-sum)
• Parties give in to the three “E”s: Ego, Emotion,
Escalation
• Parties never develop a systematic approach to
negotiation
7
ACEC/PA
AM ERIC AN C O UN C IL O F EN G IN EERIN G C O M PAN IES
of Pennsylvania
Three Areas Of Negotiation
• The Process- how we go about our negotiation
• The Substance- what we are negotiating for; what
we see as the task at hand
• The Relationships- often overlooked, and
underestimated, and regularly the first thing
sacrificed
8
ACEC/PA
AM ERIC AN C O UN C IL O F EN G IN EERIN G C O M PAN IES
of Pennsylvania
Traditional Negotiations
9
•
Establish extreme positions: always start at one
end or the other and work toward the middle
•
Always be skeptical of the other side
•
Becomes a contest of wills, strains relationships
•
If you concede, concede reluctantly
ACEC/PA
AM ERIC AN C O UN C IL O F EN G IN EERIN G C O M PAN IES
of Pennsylvania
Mutual Gains Negotiations
• Focus on and explore all options to achieve set
goals
• Produce agreements that benefit all parties
• Improve and sustain healthy relationships
10
ACEC/PA
AM ERIC AN C O UN C IL O F EN G IN EERIN G C O M PAN IES
of Pennsylvania
How To Achieve Goals Of Negotiation
• Focus on interests- not positions
– Interest: “We have to really watch our budget”
– Position: “There’s no way we are going to pay more than…”
• Use agreed upon tools to evaluate interests
• Recognize your Negotiation Limits (NL)
11
ACEC/PA
AM ERIC AN C O UN C IL O F EN G IN EERIN G C O M PAN IES
of Pennsylvania
A New Model
Steps To Mutual Gains
1. Preparation
2. Create value
3. Agreement
12
ACEC/PA
AM ERIC AN C O UN C IL O F EN G IN EERIN G C O M PAN IES
of Pennsylvania
Step 1: Preparation
• Define your team
• Estimate your Negotiation Limits
• Define your interests
• Try to estimate their interests
• Prepare options that could benefit both parties and
achieve set goals
13
ACEC/PA
AM ERIC AN C O UN C IL O F EN G IN EERIN G C O M PAN IES
of Pennsylvania
Define Your Team
• What is my role in the negotiation, and who will
assist me in the process?
• Who will gather what information?
• Who will participate in the negotiations?
• Who has the authority in the negotiations?
14
ACEC/PA
AM ERIC AN C O UN C IL O F EN G IN EERIN G C O M PAN IES
of Pennsylvania
Estimate Your Negotiation Limits
• What is your Negotiation Limit?
• Your NL is the point at which you walk away
• Both parties have an NL
• NLs are not negative, no hard feelings if NL is
exercised
• No party should be forced into a contract with
which they cannot live
15
ACEC/PA
AM ERIC AN C O UN C IL O F EN G IN EERIN G C O M PAN IES
of Pennsylvania
Focus On Interests
What Are Interests?
• Interests are the reasons for positions
– Interest: “We have to really watch our budget”
– Position: “There’s no way we are going to pay more than…”
• More than one option can fulfill a particular interest
16
ACEC/PA
AM ERIC AN C O UN C IL O F EN G IN EERIN G C O M PAN IES
of Pennsylvania
Focus On Interests
• Identify the interests of all the stakeholders
• Analyze and prioritize the interests
• Identify conflicting and compatible interests to
establish common ground
17
ACEC/PA
AM ERIC AN C O UN C IL O F EN G IN EERIN G C O M PAN IES
of Pennsylvania
Estimate Interests
Theirs Ours Yours
(Compatible)
ACEC/PA
AM ERIC AN C O UN C IL O F EN G IN EERIN G C O M PAN IES
of Pennsylvania
Prepare Options For Mutual Gains
• Think about negotiations in a different light
• Brainstorm, invite outside suggestions, be creative
• List all options without passing judgment-using
positive statements (recognize the down-side, but
emphasize the up-side)
19
ACEC/PA
AM ERIC AN C O UN C IL O F EN G IN EERIN G C O M PAN IES
of Pennsylvania
Step 2: Create Value
• All parties bring ideas and suggestions that
add value to the project
• Suspend criticism and judgment
• Discuss the interests
20
ACEC/PA
AM ERIC AN C O UN C IL O F EN G IN EERIN G C O M PAN IES
of Pennsylvania
Suspend Criticism
• Listen
• Evaluate without criticism
• Remove the person from the idea
• Evaluate ideas from the Project’s perspective
21
ACEC/PA
AM ERIC AN C O UN C IL O F EN G IN EERIN G C O M PAN IES
of Pennsylvania
Discuss Interests
• Communicate the interests in a clear and concise
manner
• Confirm what you believe compatible interests may
be
• Take careful notes
• Focus on the Project interests, not personal
positions
22
ACEC/PA
AM ERIC AN C O UN C IL O F EN G IN EERIN G C O M PAN IES
of Pennsylvania
Step 3: Agreement
• Develop the relationship and build trust
• Utilize agreed upon tools
• Solutions
23
ACEC/PA
AM ERIC AN C O UN C IL O F EN G IN EERIN G C O M PAN IES
of Pennsylvania
Develop The Relationship
• Agree to focus on project interests
• Honesty builds trust
• Listen to their views and interests
• Take a partnering approach
24
ACEC/PA
AM ERIC AN C O UN C IL O F EN G IN EERIN G C O M PAN IES
of Pennsylvania
Utilize Agreed Upon Tools
• Utilize objective standards for staff hour
development
– Market value, historical data, indices, averages, etc.
– PennDOT/ ACEC/PA Staff Hour Estimating Guide (Guide)
• Develop criteria to support the Project’s interests
25
ACEC/PA
AM ERIC AN C O UN C IL O F EN G IN EERIN G C O M PAN IES
of Pennsylvania
Staff Hour Estimating Guide
• What it is
• What it is not
• How to use the Guide
26
ACEC/PA
AM ERIC AN C O UN C IL O F EN G IN EERIN G C O M PAN IES
of Pennsylvania
The Guide
What it is
• Provides guidance for estimating levels of effort
• Provides a list of WBS Codes, staff hour ranges,
and basis for the ranges
• Should cover 80% of project scenarios encountered
• Captures agency/consultant institutional memory
• A starting point in negotiations
27
ACEC/PA
AM ERIC AN C O UN C IL O F EN G IN EERIN G C O M PAN IES
of Pennsylvania
The Guide
What it is NOT
• Not a magic bullet
• Not a substitute for mutual determination of project
scope, complexity, schedule, or deliverables
• Not the final answer in negotiations
28
ACEC/PA
AM ERIC AN C O UN C IL O F EN G IN EERIN G C O M PAN IES
of Pennsylvania
The Guide
How to Use it
• Read and Understand the Introduction to the Guide
found in Pub 93, Appendix 3G
• The Guide (the current/official version) can be
found in the ECMS References/ File cabinet
• Agree with your Project partner on scope,
complexity, schedule and deliverables
29
ACEC/PA
AM ERIC AN C O UN C IL O F EN G IN EERIN G C O M PAN IES
of Pennsylvania
The Guide
How to Use It
• Refer to the Guide for specific WBS tasks and the
starting range of hours
• Share your hours estimate with your project partner
• Conduct Negotiations
30
ACEC/PA
AM ERIC AN C O UN C IL O F EN G IN EERIN G C O M PAN IES
of Pennsylvania
Example No. 1
• The Project is a suburban roadway with major
drainage features and utilities
• Let’s look at Cross Sections
31
ACEC/PA
AM ERIC AN C O UN C IL O F EN G IN EERIN G C O M PAN IES
of Pennsylvania
Example No. 1
WBS
Task
Task
Staff Hour Range
Show Approximate Size and Location of Stormwater BMP’s on
DFV Plans
Perform Conceptual Layout of
Stormwater BMP’s. Sketch
Measures on Plan Sheets Prior
to Performing Any Pre/Post or
BMP Sizing Calculations
Preliminary Traffic Signal Design
Show the Stormwater
Management Basin on the
Design Field View Plan
2.4.5
32
Preliminary Cross Sections
Narrative
Low
0‐4 hrs
Bridge replacement project, PCSM Level 1 or 2, rural setting.
Moderate
4‐12 hrs
High
12‐18 hrs
Complexity increases with project length, PCSM Level 3 or4, Act
167 plan, HA/EV watershed, karst geology, urban setting.
Low
2‐4 hrs/1000 lf
Bridge replacement project, PCSM Level 1 or 2, rural setting.
Moderate
4‐8 hrs/1000 lf
High
8‐10 hrs/1000 lf
Complexity increases with project length, PCSM Level 3 or4, Act
167 plan, HA/EV watershed, karst geology, urban setting.
Minor
1 hr/section
Assumes generally uniform cross‐sections in rural project setting.
Moderate
2 hrs/section
Assumes major drainage/utility crossings.
Complex
3 hrs/section
Assumes urban project setting.
ACEC/PA
AM ERIC AN C O UN C IL O F EN G IN EERIN G C O M PAN IES
of Pennsylvania
Example No. 1
WBS Task
2.10.4
2.10.5
Task
Staff Hour Range
Cross Sections
Final Right of
Way Plan
Narrative
This task is a continuation of the Preliminary Cross‐Section Task
Minor
1 hr /section
Assumes generally uniform cross‐sections in rural project setting
Moderate
2 hrs /section
Assumes major drainage/utility crossings/earthwork computations
Complex
3-5 hrs /section
Assumes urban project setting or complex earthwork computation (ex.
Storm water issues, BMP’s, geotechnical issues)
Title Sheets
2‐4 hrs /sheet
Estimated hour ranges reflect post‐DFV refinements and modifications,
and final ROW plan check and approval.
General notes/location
map
4‐8 hrs/sheet
Plans
2‐4 hrs/sheet
Validation of current
ownership
4‐8 hrs/project
ROW Plan check and
associated modifications
32‐40 hrs
•Assumes approved DFV typical sections can be used with minor
modifications;
•Assumes DFV profiles can be used with minor modifications;
•Assumes no formal plan revisions;
•Assumes no viewer’s plan preparation;
•Hours per plan sheet assumes 1” = 25’ scale;
•Validation of ownership assumes 25 properties or less; add 1 hr for
every 5 properties over 25
•Assumes hours to attend plan check
2.10.6
Right‐of‐Way
Negotiations
3‐24 hrs/claim
This task is only the negotiation effort; it does not include relocation
assistance plan preparation, problem identification, declaration of taking
or relocation assistance and payments.
It is assumed that residential claims on average would be on the low end
while commercial claims would tend to be on the high end.
33
ACEC/PA
AM ERIC AN C O UN C IL O F EN G IN EERIN G C O M PAN IES
of Pennsylvania
Example No. 1
• Preliminary Engineering: the starting point for
negotiations is 2 hrs/section
• Final Design: the starting point for negotiations is 2
hrs/section
• During the Scope Clarification Meeting, the project
partners will have agreed to the number of
sections, detailing required, etc…
34
ACEC/PA
AM ERIC AN C O UN C IL O F EN G IN EERIN G C O M PAN IES
of Pennsylvania
Example No. 2
• The Project is a suburban roadway, with 1000 feet
(each side) of approach work for a bridge
replacement
• No detours are anticipated, nor temporary signals,
but EMS coordination is expected
• Let’s look at Maintenance and Protection of Traffic
35
ACEC/PA
AM ERIC AN C O UN C IL O F EN G IN EERIN G C O M PAN IES
of Pennsylvania
Example No. 2
WBS
Task
2.8.2
Task
Preliminary
Maintenance and
Protection of Traffic
Staff Hour Range
Narrative
15-25 hrs/sheet.
Assumes roughly 40% of work completed in preliminary design
Add 4-12 hrs to review TMP
flowchart from Pub 46
Additional hours may be necessary to address the need for:
Detour(s) and associated tasks (detour route analysis) to develop plans;
Coordination with emergency service providers;
Agency coordination;
Temporary signal plan(s);
Traffic Management Plan provisions.
2.8.3
Preliminary Traffic
Signal Design
40-60 hrs/signal
Assumes 30% of signal design work to be completed in Preliminary Design and
electronic roadway base plans are available.
Guidance can also be used to establish hours for Temporary Signal Plans.
Additional hours/dollars would be required for unique circumstances such as:
ADA accommodations, RR pre-emption, special bike/ped accommodations;
survey and base plan preparation time if base plans are not available;
street lighting;
structural analysis;
radio propagation study;
transit signal priority;
complex intersection operations (tight diamond, more than four legs, offset or
skewed intersections, coordinated systems, SPUI, etc.).
36
ACEC/PA
AM ERIC AN C O UN C IL O F EN G IN EERIN G C O M PAN IES
of Pennsylvania
Example No. 2
WBS
Task
Task
2.10.14
Traffic Control Plan
Staff Hour Range
25-35 hrs/sheet
Narrative
Per WBS scope of work. (Assumes roughly 60% of work will be
completed in final design and electronic roadway base plans
are available). Additional hours may be necessary to address
need for:
 Detour(s) and associated tasks (eg. Detour route analysis) to
develop RULD’s;
 Coordination with emergency service providers and other
agencies;
 Temporary Signal Plan(s);
 Temporary Roadways;
 Traffic Management Plan provisions
37
ACEC/PA
AM ERIC AN C O UN C IL O F EN G IN EERIN G C O M PAN IES
of Pennsylvania
Example No. 2
• Preliminary Engineering: 15-25 hrs/sheet x 1 ¼
sheets = 19-31 hrs + 8 hrs for EMS coordination
• 27-39 hrs is the starting point for negotiations
• Final Design: 25-35 hrs/sheet x 1 ¼ sheets = 31-44
hrs + 8 hrs for EMS coordination
• 39-52 hrs is the starting point for negotiations
38
ACEC/PA
AM ERIC AN C O UN C IL O F EN G IN EERIN G C O M PAN IES
of Pennsylvania
Example No. 3
• The Project is a single span 75 ft. long bridge
structure, two lanes, tangent section roadway, with
approach slabs
• BRADD is to be utilized in design, there is no skew
and the bridge is constant width
• Let’s look at Bridge Geometry
39
ACEC/PA
AM ERIC AN C O UN C IL O F EN G IN EERIN G C O M PAN IES
of Pennsylvania
Example No. 3
WBS Task
2.7.2
40
Task
Bridge Geometry
Staff Hour Range
10 hrs
Narrative
Includes:
•horizontal & vertical alignment;
•clearances;
•skewed conditions.
Basic Bridge:
•single span;
•tangent alignment;
•normal skew;
•one alternative;
•one bridge;
•constant width or <3 ft. variable width;
•normal x-section;
•BRADD.
Additional factors to consider:
•2 hrs/add’l span;
•2 hrs/add’l alternative;
•15 hrs/skew <70 degrees (steel);
•15 hrs/skew <45 degrees (conc);
•5 hrs if width varies >3 ft.;
•24 hrs/pro-team meeting.
ACEC/PA
AM ERIC AN C O UN C IL O F EN G IN EERIN G C O M PAN IES
of Pennsylvania
Example No. 3
WBS Task
2.10.13
Task
Bridge Geometry
Staff Hour Range
64-96 hrs
Narrative
Includes:
• final bridge geometry including horizontal and vertical alignment;
• bridge skew;
• stakeout;
• framing beam/girder layout;
• substructure, deck, barrier & approach slab layouts to determine horizontal &
vertical clearances, dimensions, and elevations;
• stakeout plan (with coordinate table).
Basic Bridge:
• single span;
• tangent horizontal and vertical alignment;
• normal skew;
• one bridge;
• constant width;
• non-varying superelevation x-slopes & lane widths;
• no staged construction;
• Stakeout Plan Sheet.
Low Range: narrow bridge (≤ 2 lanes) & short single span (≤ 50')
High Range: wide bridge (≥ 4 lanes) & long single span (≥ 150')
41
ACEC/PA
AM ERIC AN C O UN C IL O F EN G IN EERIN G C O M PAN IES
of Pennsylvania
Example No. 3
WBS Task
2.10.13
Task
Bridge
Geometry
Staff Hour Range
64-96 hrs
Narrative (cont)
Additional factors to consider:
• 16-24 hrs/add'l span for Basic Bridge;
See Low Range & High Range conditions above
• 8-12 hrs/span for full or partial curved alignment;
Low range: full curved alignment
High range: partial curved alignment & partial tangent alignment
• 16-24 hrs/span for full or partial spiral alignment;
Low range: narrow bridge (spiral geometry required – minimal)
High range: wide bridge (spiral geometry required – extensive)
• 4-8 hrs/non-normal skew;
Low range: 75 to < 90 degrees
High range: < 75 degrees
• 8-16 hrs/span for varying deck width;
Low range: narrow bridge
High range: wide bridge
• 8 hrs/approach slabs;
• 8 hrs/varying lane widths;
• 12-24 hrs/varying superelevation;
Low range: single superelevation transition
High range: multiple superelevation transitions
• 4 hrs/box beams sloped to match deck superelevation;
• 4 hrs/vertical curve;
For clearance calculations only
• 8 hrs/construction staging;
• 8-16 hrs/span for chorded/splayed beam layout;
Low range: narrow bridge
High range: wide bridge – chorded beam layout necessary for minimum and maximum overhangs
• TBN - to be negotiated, hours vary/staggered dual substructure layout with median wall;
• TBN - to Be negotiated, hours vary/gore with varying cross-slopes or graphic grade.
42
ACEC/PA
AM ERIC AN C O UN C IL O F EN G IN EERIN G C O M PAN IES
of Pennsylvania
Example No. 3
• Preliminary Engineering: the starting point for
negotiations is 10 hrs for Bridge Geometry
• Final Design: 64-96 hrs (low to high range) + 16 hrs
( 8 hrs/approach slab) + 8 hrs for construction
staging
• 88-120 hrs is the starting point for negotiations
43
ACEC/PA
AM ERIC AN C O UN C IL O F EN G IN EERIN G C O M PAN IES
of Pennsylvania
Solutions
• Develop solutions that are fair to both parties
• Work to improve each suggested solution
• Agree upon solutions that achieve the set goals
44
ACEC/PA
AM ERIC AN C O UN C IL O F EN G IN EERIN G C O M PAN IES
of Pennsylvania
Strategies For Success
• Focus on problem solving
• Reveal all parties’ interests
• Analyze common interests and conflicting ones
• Ask why (why not) to overcome past positions and
focus on interests
• Suggest options without committing (what if)
45
ACEC/PA
AM ERIC AN C O UN C IL O F EN G IN EERIN G C O M PAN IES
of Pennsylvania
Strategies For Success
• Foster cooperative atmosphere
• Discuss process and logistics before substance
• Be creative
46
ACEC/PA
AM ERIC AN C O UN C IL O F EN G IN EERIN G C O M PAN IES
of Pennsylvania
Strategies For Success
• Ensure your interests have legitimate criteria
• Identify and examine all assumptions
• Respond to rational discussion, never to pressure
47
ACEC/PA
AM ERIC AN C O UN C IL O F EN G IN EERIN G C O M PAN IES
of Pennsylvania
Pennsylvania
Department
of
Transportation
CERTIFICATE
OF
COURSE COMPLETION
This will certify that I have completed the online Mutual Gains Negotiations training.
ORGANIZATION:
________________________________________________
STUDENT’S NAME (PRINT):
_________________________________________________
DATE COURSE COMPLETED:
_________________________________________________
STUDENT’S SIGNATURE:
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* Please print out this certificate and retain for your records
ACEC/PA
AM ERIC AN C O UN C IL O F EN G IN EERIN G C O M PAN IES
of Pennsylvania