In the procurement motion the buyer is the project manager. The project manager buys services from the contracting company. When building a contract some project managers come in CCOLA which is an acronym for:
·Capacity: The vender and buyer being able to need sound decisions.
·Consideration: The buyer considers what the seller is offering.
·Offer: The seller makes an offer.
·Legal Purpose: Jurisdiction and legal bondage.
·Acceptance: The sentence limit that the buyer has to make an agreement.
To further break that exhaust. at that place are usually five tips of contract negotiation. First is protocol of the buyer and seller getting to know each other. near is probing where the buyer and seller recognize their issues of concern. The following(a) stage is scratch bargaining where negotiation occurs and compromises are made. Closure is next where everything is summarized and final decisions are made. The last stage is the agreement where two parties suck up a mutual understanding of the agreements.
Negotiation is a process in itself which can be broken down into five steps:
1.)Prepare: in this step you have to analyze the environment which accepts internal and external factors. Internal would include project needs and scheduling.
External would be customers and the suppliers need for business. figure details need to be looked over such as the suppliers performance which includes price, delivery and quality. You have to unionize and prioritize objectives; list all clauses that need to be negotiated. Identifying the immensity of each clause to the supplier is necessary.
2.)Explore and Exchange: conference and listening skills are needed.
3.)Negotiate: Offers and proposals are made.
4.)Agree and mean: An offer is accepted and an agreement has been reached which will be documented.
5.) target Negotiation: The negotiator follows up and ensures that the agreement by successful.
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