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Chapter 2;Overview of Negotiation;The Preparation of Negotiation ; Usually, a negotiating team should include members in each of the following areas:
Commercial: responsible for the negotiation on price, delivery terms, and commercial policy of risk taking;
Technical: responsible for the area concerning specification, program and methods of works;
Financial: responsible for terms of payment, credit insurance, bonds and financial guarantees;
Legal: responsible for contract documents, terms and conditions of contract, insurance, legal interpretation.;Negotiating brief and Negotiating Plan; The negotiation brief should:
Define the negotiating objective in terms if the major issues to be discussed;
State the minimum acceptance level for each of the major items;
Establish the time period within which the negotiations should be concluded;
Identify the team leader and other members of the negotiating team;
Set up the lines of communication and the reporting system.; When we draft the negotiating plan, we should:
Define the initial strategy;
Develop the supporting arguments;
Decide on the location for the negotiations;
Ensure that the appropriate administrative arrangements have been made.;The Principles of Business Negotiation;Offer ;Offer with Engagement;An offer with engagement must be clear, complete and final. It should include:
A detailed description of the item
Price, currency
Packaging
Minimum or maximum quantity
Quality
Shipping date, mode
Terms of payment
A timeframe during which the offer is available. ;Offer without Engagement;Validation, Withdrawal and Revocation of an Offer;Counter-offer;A reply to an offer which purports to be an acceptance but contains additions, limitations or other modifications is a rejection of the offer and constitutes a counter-offer.
Additional or different terms relating, among other things, to the price, payment, quality and quantity of the goods, place and time of delivery, extent of one partys liability to the other or the s
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