Conflict resolution and negotiation in construction projects using game theory: Achieving win-win outcomes

Alshboul, O. and Shehadeh, A. (2026) Conflict resolution and negotiation in construction projects using game theory: Achieving win-win outcomes. International Journal of Construction Management, 26(7), pp. 1341-1364. ISSN 1562-3599

Abstract

Construction projects are inherently complex and characterized by the involvement of multiple stakeholders, each with distinct and often conflicting objectives. These divergences frequently lead to disputes, project delays, and cost overruns, underscoring the need for a structured and predictive framework for conflict resolution. This study addresses this critical challenge by investigating the application of game theory, including classical, cooperative, and quantum models, as a strategic tool to anticipate, analyze, and resolve stakeholder conflicts in construction project management. The research employs a two-phase methodology: (1) development of formalized game-theoretic models incorporating Nash Equilibrium, cooperative strategies, and quantum probabilities; and (2) empirical validation through extensive Python-based simulations of 20 real-world conflict scenarios across construction projects. Simulation results demonstrate that the proposed game-theoretic framework achieves a 35% reduction in cost overruns, 30% decrease in conflict-related project delays, and an 85% stakeholder satisfaction rate. This study not only bridges a significant gap in construction conflict management literature but also offers a replicable, mathematically grounded framework for practitioners seeking proactive, win-win strategies. The findings has immediate implications for embedding strategic conflict resolution protocols into modern construction systems.

Item Type: Article
Uncontrolled Keywords: conflict resolution; cost overruns; nash equilibrium; negotiation strategies; project delays; stakeholder collaboration
Index terms: dispute, conflict resolution, cost overrun, construction project management, stakeholder satisfaction, negotiation, conflict management, strategy, game theory, collaboration, construction project, methodology, validation, practitioner, stakeholder conflict, construction system, project delay
Subjects: dispute resolution, participation process, decision models, financial and cost management, project management theory and practice, professional development, management, conflict resolution, project controls, practitioner, production management, research methods, building construction
Topics: Time Control, Organizational Design, Information Management, Research Practice, Cost Management, Business Strategy, Roles and Professions, Stakeholder Management, Legal Issues, Engineering Principles, Project Management
Descriptive scope: 3 PCT

N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here