If you are in construction, you are in the business of negotiation. Whether you’re navigating change orders, resolving scope gaps with subcontractors, or managing a frustrated neighbor, every interaction is a high-stakes deal.
Negotiating isn’t something you’re naturally good or bad at, but it is a skill that can be learned, practice and improved. While there are countless negotiation frameworks, one of the most popular taught in business schools is BATNA (Best Alternative to a Negotiated Agreement).
A BATNA is a "Plan B"
Everyone has a BATNA, even if they don’t know it. Simply put, it’s your Plan B. It is the answer to the question:
“What will I do if this negotiation ends with no deal?”
When you know exactly what you’ll do if a deal falls through, you lose the fear of walking away. That clarity transforms 'no deal' from a failure into a strategic choice.
How knowing your BATNA plays out in the real world
To see why this matters, let’s look at a scenario every GC can relate to. You’re nearing the end of a residential build. Drywall has been hung, taped, and textured. During the final walkthrough, the homeowner points out visible seams, nail pops, and uneven corners in the living room.
- The Homeowner argues the work is unacceptable. They refuse to sign off on final payment, want work redone immediately, and are demanding a different subcontractor finish the job.
- The Drywall Subcontractor insists the work meets “industry standards.” They claim the lighting is the issue and demand their final check before doing any touch-ups.
- You (The GC) are stuck in the middle. The project is 95% complete, the schedule for the finish carpenters is tight, and your final draw won't release until that sign-off happens.
Without preparing your alterniatives you may get yourself into trouble because you went into the negotiations:
- Unsure if you can even find another subcontractor to do a small "fix-it" job on short notice.
- Lacking a clear picture of how much eating the cost of a new subcontractor will tank your remaining margin.
- Risking a messy legal battle or a mechanic’s lien being filed by the original subcontractor.
- Vulnerable to a bad review from a homeowner who feels you don't do quality work.
Or you use the tools at your disposal to build an alternative. You find a subcontractor who’s worked with you before, confirm their availability, and discuss a flat daily rate. You open Beam’s estimating module and use the AI Assistant to generate an estimate for the repair. This lets you quickly compare the proposed cost with your usual pricing. Now, you enter the negotiation with knowledge and confidence.
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“I’ve walked the site with the client. While you feel this is industry standard, it doesn't meet the quality level we promised for this project. I’ve already pulled the market data for the remediation, and I have another crew ready to mobilize. I’d prefer for you to fix this today and get paid in full, but if you can’t get it to 100%, I’m going to have to bring in the other team and deduct their daily rate from your final payment. How do you want to proceed?”
You aren’t bluffing. You aren’t being mean. You just know your BATNA.
Knowing your business is the key
Even when your BATNA isn’t ideal, operating with solid information dramatically increases your chances of achieving better outcomes and avoiding costly surprises. Modern tools like construction estimating software, construction CRMs, or live job cost tracking offer a significant edge by delivering clear, data-backed numbers, moving you beyond guesswork and putting yourself ahead of the competition.
Confidence in construction negotiations
Using the BATNA framework isn’t about seeking conflict or expecting failure; it’s about protecting your business's long-term health and making decisions with confidence. You’ll walk into every bid meeting knowing your numbers, protecting your bottom line, and closing deals with the authority of a builder who knows their worth.
