The development of a multi-agent system for construction claims negotiation Z. Ren * , C.J. Anumba, O.O. Ugwu Department of Civil and Building Engineering, Loughborough University, Loughborough, Leicestershire LE11 3TU, UK Abstract Negotiation is an important stage in construction claims management process. Unfortunately, most construction claims negotiations are conducted inefficiently due to various reasons. The recent development of multi-agent systems provides an innovative approach to facilitating various negotiations. This research has developed a multi-agent system for construction claims negotiation (MASCOT) to resolve the inefficiency problem. This paper discusses the key points of the MASCOT model. Of particular interest is the computer implementation of the developed MASCOT model using the ZEUS agent building toolkit. q 2003 Elsevier Ltd. All rights reserved. Keywords: Construction claims negotiation; Multi-agent systems; Multi-agent system for construction claims negotiation model; ZEUS agent developing toolkit 1. Introduction In the construction industry, negotiation is preferred for the settlement of claims. Negotiation plays an important role in resolving claims, preventing disputes, and keeping a harmonious relationship between project participants. However, claims negotiations are commonly inefficient due to the diversity of intellectual background, many variables involved, complex interactions and inadequate negotiation knowledge of construction participants [21]. Most project managers consider negotiation as the most time and energy-consuming activity in claims management [8]. Inefficient negotiation makes claims resolution much more difficult and adversarial, and may delay resolution, or in worst case, even lead to expensive litigation. The inefficiency may also lead to an adversarial project environment where conflicts, delays or low productivity caused by the late settlement of claims are common [21]. Therefore, it is necessary to develop an approach to facilitate claims negotiation to reduce the tremendous time and human resources invested. Unlike most of the former studies in construction claims management which seek to improve negotiation efficiency through the improvement of fundamental theories and principles, this study tries to look for solutions through the improvement of technologies which can facilitate negotiation process. Although several computer-aided negotiation support systems (NSS) have been developed, these systems focus solely on the analytical negotiation activities based on expert systems or decision support systems. None provides direct assistance for the entire interaction bargaining process [1]. This study is concerned with the development of a high-level multi-agent system architecture for construction claims negotiation (MASCOT) in which autonomous agents, acting on behalf of project participants, can directly negotiate with each other to resolve construction claims. By applying such a system, the current problems in claims negotiation such as inefficiency, late involve- ment of the client and the influence of unhealthy human factors can be reduced. The development of MASCOT involves four key stages: review of the major negotiation theories and models to provide a sound basis for the development of agent interaction within the MASCOT model; examin- ation of the nature and important characteristics of construction claims negotiation to identify its peculiar requirements; study of multi-agent systems (MAS) and the associated theoretical underpinning; the development of an appropriate construction claims negotiation model; and the implementation and evaluation of the developed model. This paper describes the model development 0965-9978/$ - see front matter q 2003 Elsevier Ltd. All rights reserved. doi:10.1016/S0965-9978(03)00107-8 Advances in Engineering Software 34 (2003) 683–696 www.elsevier.com/locate/advengsoft * Corresponding author.