The Negotiating Skills

Robin, a social worker, lives in an old house in a pleasant neighborhood. Robin hired Chris, a builder and remodeller, to build a 20-by-20-foot screened porch that Robin has wanted for years. Robin's and Chris's spouses work together, and they have met on several social occasions.

The contract was for $12,000, of which $4800 was paid when the job was about half done. The job is now just about finished, and Chris has requested another $4800 payment this week. The last $2400 is to be paid 30 days after completion of the job.

Robin's View: Robin wants some issues settled before another penny is paid. Robin believes that there has been one problem after another on this job involving materials and workmanship. Robin has tried to be cooperative, but feels that Chris has taken advantage of Robin's goodwill. Robin has been especially uncomfortable since a neighbour visited and described the workmanship as poor and the price as $2,000 too high. Although most of the problems have been solved, Robin is ready to get tough if necessary.

The porch was built from a floor plan and a set of specifications that both parties now agree should have been more specific and included a lot more detail. There have been numerous disagreements over design details and material choices and in most cases Chris has made the changes that Robin requested. Robin has let pass some problems that would have been extremely costly for Chris to redo.

Last week Robin made a punch list of remaining tasks after Chris said the job was about done and wanted the second $4800 paid this week. Chris has now completed the punch list, except for replacing the T-111 siding on the knee wall around the porch.

Chris says that the T-111 siding was as called for in the specifications and was applied properly, so replacing it is not Chris's responsibility. The specs indeed called for T-111 but did not specify whether the grooves should be 4 inches or 8 inches on centre. Robin wanted 4 inch grooves and had drawn a vague sketch but did not write "4-inch" on the drawing. Chris purchased and installed the 8-inch material before Robin saw and approved it.

Robin thinks the 8-inch material looks cheaper than 4-inch material. Robin remembers telling Chris that 4-inch material should be used. If Chris will rip out the present T-111 and replace it with the siding Robin prefers, Robin could use the slightly damaged material to build a child's playhouse.

Robin's other problem is that this job was supposed to be finished three weeks ago. Robin asked Chris not to do any work for a week while Robin was on vacation (so that Robin could keep up daily supervision on the job), but this doesn't justify the other two weeks of delay. Robin had planned a barbecue on the new porch for co-workers but had to hold it at a private club instead–at a cost of $250. The switch was an embarrassment and a lot more work, and Robin wants Chris to reduce the final payment by $250.

The porch is a major investment for Robin, who doesn't make much money as a social worker. Robin worked as a carpenter for a construction company during summer vacations while in college, and remembers the practice of often overcharging customers. Robin acknowledges being picky, but wants the job done right, with full value for the money being paid.

Chris's View: Chris agrees with Robin about the basic facts of the case, but that's about all.

This has been a job Chris regrets ever accepting. Robin has champagne tastes and a beer budget. For example, Robin wanted to use lower grade lumber to save money, then demanded those pieces with splits and knots be replaced.

Because of all the problems and changes, Chris is not making a profit on this job and just wants it done. Moreover, Chris feels unappreciated for all the extra effort put in to get the project built on a limited budget.

Chris is willing to replace the T-111, but only as a separate contract. Chris estimates that the new material and trim would cost $150, and wants $350 to install it, for a total of $500 without overhead or profit.

Chris acknowledges there was a sketch showing the siding, but it was not to scale. Chris does not remember Robin saying anything about the spacing of the grooves.

Chris plans to ask Robin to supplement the original contract as compensation for all of the extra effort. Chris has spent hours returning materials to suppliers, getting special items, redoing work, and talking out every detail with Robin. Chris has had to do work that, on another job, employees would have done.

Because Chris's crew didn't work on Robin's job while Robin was on vacation, and no other jobs were ready, Chris had to pay employees to work around the shop.

Chris figures that the job has cost $2000 more than estimated when the contract was drawn up, and that doesn't even include money that could have been made if the time were spent elsewhere.

Chris wants at least $500 more on this contract, even though that's not enough to compensate for all the expense and aggravation.

The Solution: Clearly, both Robin and Chris have legitimate grievances. I-Tow can they solve them? They can go to court. They can hire a mediator to seek a solution or an arbitrator to impose one. But they choose, wisely, to try constructive negotiation.