- Negotiation

Negotiation is a process in which the terms and conditions of a contract are discussed between the announcing entity and participants in the tender to ensure reaching an agreement that serves the interests of both parties. Although tenders primarily rely on transparent criteria and accurate evaluations, negotiation can be a necessary component in certain cases.

Reasons for Negotiation in Tenders:

1. Low or High Financial Offers: If financial offers are outside the expected range, negotiations may be conducted to adjust prices.
2. Technical Adjustments: When the project requires changes in technical specifications.
3. Timeline Conditions: If there is a need to accelerate or extend the execution period.
4. Legal Conditions: To ensure the contract's compliance with local laws or the announcing entity's interests.

Types of Negotiation:

1. Negotiation Before Awarding: Conducted with all competitors to determine the best offer.
2. Negotiation After Awarding: Conducted with the winner of the tender to improve conditions or address any outstanding issues.

Negotiation Mechanisms:

• Negotiation must be transparent and documented to ensure integrity.
• Relying on legal and technical experts to ensure conditions comply with the required specifications.
• Setting the main negotiation objectives and avoiding going beyond their scope.

Benefits of Negotiation:

1. Improving Conditions: Negotiation allows for improving contract conditions to meet the announcing entity's requirements.
2. Reducing Costs: Reaching a better financial agreement.
3. Enhancing Relationships: Building a strong partnership between the announcing entity and the supplier.

Despite the importance of negotiation, it must be conducted cautiously to avoid any suspicion of bias or impact on the process's integrity.