Mutual Gains Negotiations Training Outline January 16 2013.

ACEC/PAA C E CM ERICAN OUN CIL OF NGINEERING OMPANIES

of Pennsylvania

Mutual Gains NegotiationsMutual Gains Negotiations

Training Outline

January 16 2013


of Pennsylvania

2

What Is Mutual Gains Negotiations?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.


of Pennsylvania

3

Course ObjectiveCourse 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


of Pennsylvania

4

What Is Negotiation?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


of Pennsylvania

5

Negotiation Is NOT….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


of Pennsylvania

6

Negotiations Fail When: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


of Pennsylvania

7

Why Negotiations FailWhy 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


of Pennsylvania

8

Three Areas Of NegotiationThree 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


of Pennsylvania

9

Traditional NegotiationsTraditional Negotiations

• 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


of Pennsylvania

10

Mutual Gains NegotiationsMutual Gains Negotiations

• Focus on and explore all options to achieve set goals

• Produce agreements that benefit all parties

• Improve and sustain healthy relationships


of Pennsylvania

11

How To Achieve Goals Of Negotiation 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)


of Pennsylvania

12

A New ModelA New Model

Steps To Mutual Gains

1. Preparation

2. Create value

3. Agreement


of Pennsylvania

13

Step 1: PreparationStep 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


of Pennsylvania

14

Define Your TeamDefine 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?


of Pennsylvania

15

Estimate Your Negotiation LimitsEstimate 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


of Pennsylvania

16

Focus On InterestsFocus 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


of Pennsylvania

17

Focus On InterestsFocus On Interests

• Identify the interests of all the stakeholders

• Analyze and prioritize the interests

• Identify conflicting and compatible interests to establish common ground


of Pennsylvania

Estimate InterestsEstimate Interests

OursOurs(Compatible)(Compatible)


of Pennsylvania

19

Prepare Options For Mutual GainsPrepare 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)


of Pennsylvania

20

Step 2: Create ValueStep 2: Create Value

• All parties bring ideas and suggestions that add value to the project

• Suspend criticism and judgment

• Discuss the interests


of Pennsylvania

21

Suspend CriticismSuspend Criticism

• Listen

• Evaluate without criticism

• Remove the person from the idea

• Evaluate ideas from the Project’s perspective


of Pennsylvania

22

Discuss InterestsDiscuss 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


of Pennsylvania

23

Step 3: AgreementStep 3: Agreement

• Develop the relationship and build trust

• Utilize agreed upon tools

• Solutions


of Pennsylvania

24

Develop The RelationshipDevelop The Relationship

• Agree to focus on project interests

• Honesty builds trust

• Listen to their views and interests

• Take a partnering approach


of Pennsylvania

25

Utilize Agreed Upon ToolsUtilize 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


of Pennsylvania

26

Staff Hour Estimating Guide

• What it is

• What it is not

• How to use the Guide


of Pennsylvania

27

The GuideWhat 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


of Pennsylvania

28

The GuideWhat 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


of Pennsylvania

29

The GuideHow 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


of Pennsylvania

30

The GuideHow 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


of Pennsylvania

31

Example No. 1

• The Project is a suburban roadway with major drainage features and utilities

• Let’s look at Cross Sections


of Pennsylvania

32

Example No. 1

WBS Task

Task Staff Hour Range Narrative

Perform Conceptual Layout of Stormwater BMP’s. Sketch Measures on Plan Sheets Prior to Performing Any Pre/Post or BMP Sizing Calculations

Show Approximate Size and Location of Stormwater BMP’s on DFV Plans

Preliminary Traffic Signal Design 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.

Show the Stormwater Management Basin on the Design Field View Plan

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.

2.4.5 Preliminary Cross Sections


of Pennsylvania

33

Example No. 1

WBS Task Task Staff Hour Range Narrative

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)

2.10.5 Final Right of Way Plan

Title Sheets 2‐4 hrs /sheet Estimated hour ranges reflect post‐DFV refinements and modifications, and final ROW plan check and approval.

•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

General notes/location map

4‐8 hrs/sheet

Plans 2‐4 hrs/sheet

Validation of currentownership

4‐8 hrs/project

ROW Plan check and associated modifications

32‐40 hrs

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.

2.10.4 Cross Sections This task is a continuation of the Preliminary Cross‐Section Task


of Pennsylvania

34

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…


of Pennsylvania

35

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


of Pennsylvania

36

Example No. 2

WBS Task


2.8.2 Preliminary Maintenance and Protection of Traffic

15-25 hrs/sheet.

Add 4-12 hrs to review TMP flowchart from Pub 46

Assumes roughly 40% of work completed in preliminary design

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.).


of Pennsylvania

37

Example No. 2

WBS Task


2.10.14 Traffic Control Plan 25-35 hrs/sheet 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


of Pennsylvania

38

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



of Pennsylvania

39

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


of Pennsylvania

40

Example No. 3


2.7.2 Bridge Geometry 10 hrs 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.


of Pennsylvania

41

Example No. 3


2.10.13 Bridge Geometry 64-96 hrs 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')


of Pennsylvania

42

Example No. 3

WBS Task Task Staff Hour Range Narrative (cont)

2.10.13 Bridge Geometry

64-96 hrs 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 alignmentHigh 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 degreesHigh range: < 75 degrees

•8-16 hrs/span for varying deck width;Low range: narrow bridgeHigh range: wide bridge

•8 hrs/approach slabs;•8 hrs/varying lane widths;•12-24 hrs/varying superelevation;

Low range: single superelevation transitionHigh 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 bridgeHigh 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.


of Pennsylvania

43

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



of Pennsylvania

44

SolutionsSolutions

• Develop solutions that are fair to both parties

• Work to improve each suggested solution

• Agree upon solutions that achieve the set goals


of Pennsylvania

45

Strategies For SuccessStrategies 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)


of Pennsylvania

46


• Foster cooperative atmosphere

• Discuss process and logistics before substance

• Be creative


of Pennsylvania

47


• Ensure your interests have legitimate criteria

• Identify and examine all assumptions

• Respond to rational discussion, never to pressure


of Pennsylvania

PennsylvaniaDepartment

ofTransportation

CERTIFICATEOF

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: _________________________________________________

* Please print out this certificate and retain for your records

Mutual Gains Negotiations Training Outline January 16 2013.

Documents

Transcript of Mutual Gains Negotiations Training Outline January 16 2013.