An Examination of the Effects of Equity Sensitivity in Construction Dispute Negotiation

Description

The construction industry has been criticized for the high degree of fragmentation, with numerous individual participants striving for their own goals and needs and expecting to maximize their own benefits. In this regard, construction negotiation is often based on an imbalance of power among negotiators. The issue of "fair exchange" is thus critical to every construction negotiator. Underpinned by a well-established equity theory of Adams (1963), the concept of equity sensitivity (i.e. to explain the dynamics of equity perceptions) is applied to construction dispute negotiation. Specifically, this project aims to investigate the equity sensitivity of construction negotiators, and study its effects on negotiating behaviours and negotiation outcomes. This study will provide two important contributions. First, it will offer theoretical knowledge to explain equity perceptions of negotiators in construction dispute negotiation. Second, the understanding of equity perceptions will help construction negotiators to execute a fair negotiation.