Negotiate

The activities associated with preparation, dialogue and reaching an agreement for the purpose of establishing a contract for the delivery of products or services. This includes knowing the Buyer, understanding bargaining positions of parties involved, fact finding meetings, internal reviews, bargaining meetings and debriefings.

General objectives of negotiation include:

Agree on specifications of product or service - what
Agree on a fair price for product or service - how much
Agree on delivery terms and conditions - when, where
Agree on delivery performance - quality, on-time performance

Additional objectives of negotiation may include agreement on information exchange, inspection processes, flexibility.

Notes

Negotiation is sometimes confused with haggling or price cutting (win-lose). Whereas some situations require such approaches, the Negotiate process is intended to cover negotiations from the widest possible interpretation -- including approaches such as win-win, collaborative and alliance related negotiations.

OpenReference recognizes both sides of the negotiation process: Negotiate (a Contract process) for the Seller and Negotiate (a Source process) for the Buyer.

Hierarchy

ID	Name	Level	x
C1	Contract Standard Terms	2	C1
C104	Negotiate	3	C104

Workflow

From

Input(s)

Process

Output(s)

To

wf_process	wf_arrow
S006	Negotiations

C104

wf_arrow	wf_process
Negotiations	S006
Agreed PT&C	C105

Note: Common inputs and outputs are listed in alphabetical order. Other inputs and outputs may be required to support varying use cases.Negotiate Contract Standard Terms 3310400 3 Contract, Contract Standard Terms and Conditions, T&C, Negotiate, Refine, Sales & Support