Bargaining Strategies for Construction Joint Ventures by Fuzzy Logic

As the modern construction market and environment encounter drastic changes, a single company alone can no longer manage a complex project and satisfy project owner’s needs. Joint venture (JV) of companies, formed to integrate various expertises, becomes a necessity to obtain competitive advantages to ensure survival in the fiercely competitive market. While two profit-oriented companies intend to form a JV for a particular project, it is relatively easy to divide the work scope by each party’s specialties, yet to reach an agreement on the sharing of rewards is always a challenge. This research developed a sequential bargaining model with fuzzy logic for JV parties to estimate acceptable prices of both parties. The research results can assist JV companies to select their bargaining strategy in a systematic and rational manner.