International Business Negotiations Conducting Negotiations and Managing Conflict.
Welcome to the International Right of Way Association’s Course 207 Practical Negotiations for...
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Welcome to the International Right of Way
Association’s
Course 207Practical Negotiations for
United States Federal and Federally Assisted Projects
207-PTT – Revision 2 – 09.04.2014.USA
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IntroductionsWho we are…What we do…
Where we do it…How long we’ve been doing it…
Our goals for the course...
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Objectives At the conclusion of the two days,
you will be able to...
• Demonstrate a basic knowledge of the requirements that apply to negotiators for Federal and federally assisted projects under the Uniform Act.
• Develop an understanding of negotiating styles.
• Use practical approaches and tips to improveright of way acquisition settlement rates.
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Housekeeping
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ScheduleDay One (1)
8:00 - 8:30 Introductions, Etc.8:30 - 9:30 Federal Laws and Regulations9:30 - 11:15 Acquisition Policies (General)11:15 - 12:00 Acquisition Policies (Negotiations)1:00 - 3:00 Acquisition Policies (Negotiations)3:00 - 4:00 “More” Negotiation Processes4:00 - 4:30 Recap Day One
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ScheduleDay Two (2)
8:00 - 8:30 Recap 8:30 - 9:00 Condemnation9:15 - 10:15 Some Common Issues10:30 - 11:45 Conflict Management Styles12:34 - 2:15 Characteristics of the Successful
Negotiator2:30 - 3:30 Case Study3:30 – 4:00 Summary and Review4:00 – 5:00 Exam
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Acquisition
Acquisition is the process of acquiring real property and includes appraisal, appraisal
review, establishing just compensation, negotiation, administrative and legal
settlements and condemnation.
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Laws and RegulationsUniform Relocation Assistance and Real Property Acquisition Act of 1970, as amended
• Title 49 (Transportation) CRF Part 24
• Title 23 (Highways) CFR Part 710
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The Uniform Act
Title I General ProvisionsTitle II Uniform Relocation AssistanceTitle III Uniform Real Property
Acquisition Policy
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The Uniform Act• Owners of real property to be acquired for federal
and federally assisted projects are treated fairly and consistently, encourage and expedite acquisition by agreement, minimize litigation, relieve court congestion, promote public confidence in federal and federally assisted land acquisition programs.
• People displaced are treated fairly, consistently,
and equitably. • Agencies implement the Uniform Act regulations
efficiently and cost effectively..
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Basic Policies (1)
Expeditious acquisitionNotice to owner
Appraisal and invitation to the ownerAppraisal waiver
Establishment and offer of just compensationSummary statement
Basic negotiation procedures
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Basic Policies (2)
Updating offer of just compensationCoercive action
Administrative settlementPayment before taking possession
Uneconomic remnantInverse condemnation
Fair rentalConflict of interest
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Basic Policies (3)
Expeditious acquisitionNotice to owner
Appraisal and invitation to the ownerAppraisal waiver
Establishment and offer of just compensationSummary statement
Basic negotiation procedures
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Basic Policies (4)
Updating offer of just compensationCoercive action
SettlementsPayment before taking possession
Uneconomic remnantInverse condemnation
Fair rentalConflict of interest
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Settlements
Original just compensation offer Updated just compensation offer
Administrative settlement Alternate dispute resolution (Mediation)
Legal settlement Court settlement
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Basic Policies (5)
Updating offer of just compensationCoercive action
SettlementsPayment before taking possession
Uneconomic remnantInverse condemnation
Fair rentalConflict of interest
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General Requirements (1)
Adequacy of real property interest
Less than full fee interest
Influence of the project on just compensation
Appraisal and just compensation for a tenantowned improvement
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General Requirements (2)
DonationsOwner retention of improvements
Expenses incidental to transferCertain litigation expenses
Right to occupyHardship and protective buying
Recordkeeping and reports
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Reports
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Day One Recap
• Demonstrate a basic knowledge of the requirements that apply to negotiators for Federal and federally assisted projects under the Uniform Act
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Day Two• Demonstrate a basic knowledge of the requirements that apply to negotiators for Federal and federally assisted projects under the Uniform Act.
• Develop an understanding of individual negotiating styles.
• Use practical approaches and tips to improve right of way acquisition settlement rates.
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Eminent Domain and Condemnation
Eminent domain is the right of the government to take private property for public use on the payment of just compensation.
Condemnation is the process by which the power of eminent domain is implemented.
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Some Common IssuesAppraisals
Attorneys
Authority
Compensation
Condemnation
Property Owners
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Appraisal Issues (1)
1. Do your agencies provide the owner with a copy of the appraisal report?
2. Do your agencies provide the owner with a copy of the waiver valuation?
3. If your agency provides a copy of the appraisal what does your agency do if the reviewed
amount is less than the appraised amount?
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Appraisal Issues (2)
4. If your agency does not provide a copy of the appraisal report what does your agency do if the owner asks for a copy?
5. Do you think that not providing the appraisal report might affect the trust relationship with
the property owner?
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Attorney Issues (1)
1. How do you answer the owner’s question: “Do I need an attorney?”
2. What do you do if the owner names his/her attorney and you know that the attorney is ineffective?
3. What do you do if the owner’s attorney is not serving the client well?
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Attorney Issues (2)
4. What do you when the owner, who is represented by an attorney, contacts you with “just one question” or for a clarification of something his/her attorney said?
5. Are you less or more apt to increase an offer if an attorney is involved? Why?
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Authority Issues (1)
1. How much authority do you have to settle above the initial offer?
2. What do you do when the owner wants to negotiate with your supervisor?
3. Is there a point in the acquisition process when your authority passes to another person?
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Authority Issues (2)
4. Are there times when you decide to pass the problem to your supervisor?
5. Do you ever use the ploy “I need to talk to my supervisor about this settlement.” (When you don’t)?
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Compensation Issues (1)
1. What do you do if the owner asks for more money than you think is warranted; but not too,
too much more?
2. What do you do if you think the compensation to the owner is too low?
3. Assume that you are ready to close and the owner wants “one more thing”?
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Compensation Issues (2)
4. How do you feel when your supervisor needlessly “caves in” to an owner’s demands when you have been holding firm?
5. How do you handle recurring property owners (e.g., utility companies, railroads, large landholders, etc.) who know the system as well as you do and always want more or who prefer to negotiate with your supervisor or attorney?
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Compensation Issues (3)
6. How do you secure an increase in the compensation ?
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Condemnation Issues (1)
1. How do you know when it is “time” to start condemnation?
2. How hard does your agency work to avoid condemnation?
3. Why does your agency condemn (e.g., money divergence, title issues)?
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Condemnation Issues (2)
4. How do you raise the subject of condemnation with the owner without being coercive?
5. Does your agency ever “win” a compensation claim?
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Property Owner Issues (1)
1. How do you deal with an owner who is hurting him/herself in the negotiations (e.g., obstinate, just doesn’t grasp the situation, is in conflict with another owner)?
2. How do you deal with an owner who won’t cooperate?
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Property Owner Issues (2)
3. How do you deal with an owner who demands way too much compensation and your agency would prefer to settle and not condemn?
4. What do you do when the negotiations reach an impasse?
5. What do you do when the owner is unable to make a decision?
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Conflict
Conflict is a disagreement or collision(between people or among groups)in interests, ideas, beliefs, opinions, impulses, etc. with an emphasis on
process rather than on outcome. The conflict can be perceived of as friendly or
hostile or gradations in between.
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Conflict Management Styles
Avoidance Accommodation
CompetitionCompromiseIntegration
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Avoidance
Differences are too minor or too great
to resolve. If resolution is attempted,
relationships might be adversely affected.
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Accommodation
Relationship and harmony
must not be jeopardized.
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CompetitionNeed to prove superiority.
Need to satisfy own needs.
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Compromise
No one person or one idea is ideal.
There are several ways to do anything.
A person needs to give to get.
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IntegrationWhen both parties communicate openly,
a mutually beneficial solution will be found without either person making a
major concession.
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Conflict
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Conflict Management Styles
Avoidance Accommodation
CompetitionCompromiseIntegration
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Personality StylesExtrovert
Introvert
Pragmatist
Idealist
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Characteristics of the Successful Negotiator (1)
CredibilityCourageEmpathy
Integrity/EthicsPatience
Communication Skills
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Maintaining RelationshipsShared control
EqualitySimilarities
Trust“Liking”Openness
InterdependenceSelf-worthNo jargon
Understanding and giving feedback
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Characteristics of the Successful Negotiator (2)
Motivation… is the psychological characteristics that
arouse people to act.
External Internal
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Reactive v. Proactive
Reactive ProactiveThere’s nothing I can do. Let’s look at what we can do.They won’t allow that. How can I convince my
agency that it is the right thing to do?
I can’t. I can.I must. I want to.If only. I will.
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Case Study
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Objectives Now, you should be able to...
• Demonstrate a basic knowledge of the requirements that apply to negotiators for Federal and federally assisted projects under the Uniform Act.
• Understand individual negotiating styles.
• Use practical approaches and tips to improve right of way acquisition settlement rates.
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5353
Thank you