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Change is ubiquitous in construction project schedules and there are many interrelationships and interdependencies in project schedule changes. Therefore, a schedule change in the work of a subcontractor might affect schedules of other subcontractors, as well as the project deadline. The subcontractor should resolve schedule conflicts with other affected subcontractors. This implies that there is a need for a methodology for the distributed coordination of project schedule changes (DCPSC). This paper presents a novel agent-based compensatory negotiation methodology to facilitate the DCPSC wherein a project can be rescheduled dynamically through negotiations by all of the concerned subcontractors. The methodology consists of a compensatory negotiation strategy based on utility of timing, multilinked negotiation protocols, and message-handling mechanisms. A simple case example illustrates the methodology. The methodology makes new contributions in both theoretical and practical areas. In practice, this methodology will improve project network schedules, by lowering the sum of the cost of the subcontractors associated with their resource constraints. In theory, the methodology provides a distributed coordination methodology that can improve interaction and collaboration among agents and people. [ABSTRACT FROM AUTHOR]