Cultural, external and behavioral factors in claims negotiations

Abstract

Purpose – The purpose of this paper was to investigate the factors affecting the claim negotiations in Iranian oil and gas construction projects. The findings of this paper give better understanding of claim negotiations in Iranian oil and gas projects. Design/methodology/approach – The research methodology for this study involved the use of Delphi technique, conducted with non-Iranian stakeholders being involved in Iranian oil and gas construction projects more than five years and determined the major factors, affecting claims negotiations. Subsequently, factors’ weightings were derived using analytic hierarchy process (AHP). Findings – In total, 13 affecting factors identified in three categories of: external, cultural and personal behavioral. Finally, the weights of factors were identified. Research limitations/implications – This research was conducted in the context of Iranian oil and gas projects. This industry has high standards and its employees are well chosen and have frequent in job training. All these affect the organization, working and people’s culture and behavior compared to other sectors of construction business. Therefore, the results of this research are specific to the oil and gas industry. Practical implications – The findings of this paper can be considered as a practical guide for dealing with Iranian counterparts during claims negotiations to ensure amicable settlement. Also, it is useful for Iranian stakeholders to have better understanding of concerns of non-Iranian stakeholders. Originality/value – The paper is the original work of the authors, and to the best of the authors’ knowledge, this paper has for the first time introduced the factors affecting claims negotiations. The findings of this paper provide useful insight into effective claims negotiations of Iranian oil and gas projects.