Communication and Negotiation

Communication and Negotiation

ASSIGNMENT 2

Canadian Home Builders’ Association of British Columbia – Continuing Education ProgramAssignment 2 — 1

Communication and Negotiation

Assignment 2 -- NegotiationInstructions

Assignment 2 for the Communication and Negotiation course is found on the following pages.

Please download the word form and fill in the missing fields. Print out the completed form, and email it to your instructor by the submission deadline for the course.

Please bring a copy of your assignment to the one-day workshop, as we may review the assignment in detail at that time.

Canadian Home Builders’ Association of British Columbia – Continuing Education Program Assignment 2 — 1

Communication and Negotiation

Assignment 2 – NegotiationPlease ensure you fill in the following table. Click in the first cell and enter your name. To get to the next cell, simply press the tab key or click in that cell.

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Assignment 2 — 2 Canadian Home Builders’ Association of British Columbia – Continuing Education Program

Communication and Negotiation

Assignment 2 – Negotiation Note: Click in or use the tab key to enter your data into the cells. The cells will automatically expand to fit your text.

Case Study: A recent case identified a common problem in construction: doing work for friends.  When skilled construction people agree to help out friends they need to remember that there are the same (and even greater) risks involved as when they are working commercially.  Forget the basic business practices at your peril.

The facts of the case study are outlined on the following page.

You are the builder Mr. P. You would like to clear up a misunderstanding with your friends, Mr. and Mrs. W. A meeting is set to take place to negotiate a resolution of the issues.

Source: Case study provided courtesy of www.kuhnco.net

Canadian Home Builders’ Association of British Columbia – Continuing Education Program Assignment 2 — 3

Communication and Negotiation

Case StudyThe Facts:Mr. P was a builder married to Mrs. P, a designer.  They agreed with their long-time friends, Mr. and Mrs. W, to design and build a home for them.  When the costs came in at over $345,000 (which the owners paid), the owners sued the builder for the return of $45,000 because they argued the builder “agreed to build the house for a fixed cost of $300,000”.  The builder argued that he had quoted $345,000.  The owners argued that the builder knew they could not afford more than $300,000, and agreed to reduce the price based on the owners doing some of the work.  The builder said that there was no such agreement.  He argued that the costs were to be paid by the owners, whatever they turned out to be.

The parties had committed some of the agreement to writing, which referred to payment of a “management fee of cost plus 8% (to a maximum of $24,000)”.  The owners did do some of the work and some extra work was required.  The builder provided periodic status reports on costs, but it was not until the builder’s final invoices came in that the owners realized that they were over the $300,000 they thought was the fixed price.

For some unexplained reason the owners paid $345,000 and did not notify the builder that “the house had gone far over what was…… the contract price” until months later (even after inviting the builder to a celebratory dinner in the new home.

Other Considerations:The builder had applied for the building permit at a declared value of $300,000 and also registered the home for Homeowner Protection Act purposes at the same value.

Assignment 2 — 4 Canadian Home Builders’ Association of British Columbia – Continuing Education Program

Communication and Negotiation

Canadian Home Builders’ Association of British Columbia – Continuing Education Program Assignment 2 — 5

Communication and Negotiation

Case Study Question 1:

Preparing a negotiating plan.

Course references: Chapter 4, pages 5-7 to 5-16

Instructions:

Using the 7-step plan outlined in this course for preparing to negotiate, prepare to meet with Mr. and Mrs. W.

Outline and prepare each of the 7 steps for the negotiation.

Use bullets or sentences.

Your answer should be limited to no more than 100 words per step.

Assignment 2 — 6 Canadian Home Builders’ Association of British Columbia – Continuing Education Program

Communication and Negotiation

Answer:

Case StudyQuestion 2:

Based on your 7-Step preparation plan, what do you think will be the final outcome of the negotiation? Why?

Course references Chapter 5 Pages 5-7 to 5-16

Instructions:

Use bullets or sentences.

Your answer should be limited to no more than 100 words

Answer:

Canadian Home Builders’ Association of British Columbia – Continuing Education Program Assignment 2 — 7

Communication and Negotiation

Assignment 2 — 8 Canadian Home Builders’ Association of British Columbia – Continuing Education Program