Procurement Negotiations

Without negotiations no contract will be signed. Procurement negotiations is about arriving at the mutual understanding between buyer and the seller in the area of requirements, responsibilities, authority to make any changes, terms and conditions, technical aspects, IP rights, financing, schedule, payment frequency, price, etc… For complex procurement negotiations can be independent process where as for the simple procurement purchase order kind of agreements can be signed need to be accepted by the seller.

The project manager should involve other project management team while negotiation with seller so that it will assist in understanding the technical, quality and management requirements.

Also Procurement Negotiations are used if any disputes, outstanding issues, claims during the closing of procurements. If this is not working, one can use Alternative Dispute Resolution (ADR) through mediation. In the worst case it has to be settled in the court which is least preferred.

At the end of the day the Procurement Negotiations should be from win-win proposition.

Procurement Negotiations technique is used under the processes Conduct Procurements and Close Procurements.