Negotiation Process When approaching negotiation it is important to recognise that the majority of work involved in any negotiation occurs prior to the actual event. Some typical areas which may be negotiated are:- * payment terms; * price; * delivery dates; * warranties and guarantees; * quality; * performance indicators; * performance monitoring; * remedial action; * training; * documentation requirements; * maintenance, repair or after-sales service; * compensation for failure to perform; and * terms and conditions of contract. Any changes agreed with the tenderer must be obtained in writing and incorporated into the written contract. The framework below illustrates the key areas to consider when planning a negotiation The Negotiation Process
Each of the four stages of the Negotiation process will be discussed further in detail below. When considering the Negotiation process, it may be useful to have reference to the SPD Negotiation Plan Template STAGE ONE – Pre Negotiation Gather Information. Enter all negotiations knowing a great deal about your supplier's and your own organisation. Some points to consider include:- * what is the market condition for these goods or services ? * what is the supplier's position in this market, i.e. how strong is the competition ? * what are the supplier's competitive strengths and weaknesses ? How has the supplier performed in past contracts and/or negotiations ? * what are the reasons for the position the supplier is adopting ? * how attractive is the business you have on offer to suppliers ? Is it a single purchase, or could there be additional requirements ? What percentage of the