TendersAlerts-logo

- 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.

Tenders Alerts Admin Avatar
Tenders Alerts Platform
Platform Admin
Published at
2024-11-15
Get specific alerts for tenders in your field
Register now
Get full data for market research and competitors
Tenders Alerts Platform Services
  • - Personalized Alerts
  • - Alerts through WhatsApp and Email
  • - Instant Search
  • - Export to Excel
  • - Excel Quantity Tables
  • - Awarding and Proposals Data
  • - Suppliers Data
  • - Complete Data (including what was removed from Etimad)
  • - Preparing Technical and Financial Proposals
Register now

Related Links

More

Review of Contractual Documents: Importance and Implementation Steps

Learn about the importance of reviewing contractual documents, its objectives, stages, and related challenges to ensure successful tenders.

Read More

The Complete Guide to Understanding the Contractual Execution Period and Its Importance

The contractual execution period defines the schedule and commitments in project execution, affecting workflow and productivity.

Read More

The Role of Cost Management in Project Success

Cost management is the essential step to ensure financial success in projects and to adhere to the allocated budget.

Read More

Understanding the Custom Specifications Document and Its Importance in Tenders

Learn about the custom specifications document and how it plays a pivotal role in defining requirements and successfully executing projects. It includes technical, financial instructions, and legal procedures.

Read More

The Importance of Delivery Schedules in Project Management

Learn about the importance of delivery schedules in project organization, how to set them, and the challenges associated to ensure efficiency and quality.

Read More

Digital Enrollment: A Step Towards Digital Transformation in Tender Management

Discover how digital enrollment contributes to improving transparency and enhancing efficiency within tender processes, and learn about the registration process and its importance.

Read More

Everything You Need to Know About Direct Purchase

Discover the details of direct purchasing, its importance, procedures, associated challenges, and how to organize it according to regulations.

Read More

Best Practices in Dispute Resolution Procedures

Discover the various mechanisms for resolving disputes between contracting parties to ensure justice and project continuity without disruption.

Read More