Strategic Insights from Equipment Rental Negotiations in Brazilian Construction Projects

Abstract

This article examines a real-world negotiation for the rental of a hydraulic excavator in a construction project in Campinas/SP. The situation shows how budget constraints, strict payment terms, short project timelines, and low supplier inventory levels make negotiations more challenging. The negotiation began as a dispute over the position between the company's budget limit and the supplier's high proposal, but both sides eventually revealed their core requirements, leading to an integrated solution. The parties established their Zone of Possible Agreement (ZOPA) as ranging from R$45,000 to R$50,000 through their evaluation of three creative solutions that eliminated moving costs, added protective measures, and created potential future commercial partnerships. The final contract agreement for R$47,000 fulfilled all requirements while demonstrating that procurement success depends on maintaining open communication and showing respect to all parties involved in the negotiation process. The case demonstrates how evaluating BATNA and using interest-based negotiation techniques enable teams to transform opposing positions into collaborative solutions that construction managers and supply chain specialists can apply.