MGTS7310 Business Negotiation

MGTS7310 Business Negotiation

MGTS7310 Business Negotiation

Infrastructure Negotiation

Your organisation is planning to negotiate on a project comprising remediating footpaths, car parks and line marking around RAAF Base Point Cook and RAAF Williams Laverton. The scope also includes remediating the rainwater drainage on a building and the stormwater drain on the airfield at RAAF Base Point Cook. You are required to complete the attached negotiation plan for the project negotiation.

Your Assessor will represent the client and for the purposes of this assessment task, will represent the client in a role play, where you must negotiate an approach to the project
Throughout the negotiation, you are required to:
• initiate decision making actions
• establish the rules of procedure
• identify the information needs of participants
• actively encourage the free exchange of information
• encourage decisions which are realistic for the situation
All decisions throughout the negotiation processes must be in line with:
• legislative, organisation and site requirements and procedures
• manufacturer’s guidelines and specifications
• Australian standards
• Employment and workplace relations legislation
• Equal Employment Opportunity and Disability Discrimination legislation
Ensure that you adequately minute the negotiation and develop correspondence to relevant stakeholders to advise them of the outcomes.
Stakeholders for this project could include:
• relevant regulatory authorities
• tenders
• project managers
• contractors
• employees
• community
• customers
• suppliers

The following Negotiation Plan is will assist Procurement staff when preparing for negotiations. It has been designed as a simple tool to help staff analyse issues and prepare successful negotiation strategies.
The guide will prompt staff to think through the government’s requirements and objectives prior to undertaking important negotiations as well as consideration of both sides’ needs, strengths and weaknesses in order to understand the overall context of the negotiation, leading towards an improved position.
Good preparation and planning are crucial to the achievement of successful negotiation outcomes.
Note that this document is intended to be used as a guide to the creation of a negotiation plan and that as such some of the requirements listed may not be applicable for every scenario.
Possible scenarios where this Negotiation Plan may be useful include but are not restricted to:
• RFx finalisation negotiations
• contract renewal negotiations
• contract variation negotiations
• contract management negotiations
• sole supplier situations (where appropriate). 

Procurement conduct plan
The Procurement Conduct Plan must be provided to all Procurement participants involved in negotiations and a signed Code of Conduct, Probity and Confidentiality Agreement included on the file. Has each member of the negotiation team signed the Code of Conduct, Probity and Confidentiality Agreement?
Negotiation protocol
The use of a negotiation protocol should be considered where there is:
• significant contract value or amounts
• a considerable government commitment
• sizeable liability or risk
• concern over the previous conduct of the other party.
Will a negotiation protocol be created and signed by both parties before the beginning of negotiations?

Government Information (Public Access) Act 
Have the other parties been advised that files and papers pertaining to the negotiationmay be subject to the Government Information (Public Access) Act 2009 and could potentially have to be disclosed?
Is the subject matter which will form part of the negotiations fully understood by all members of the negotiation team?

Do you thoroughly understand the products/services and the supply market?
Have you completed the Supply Positioning tool?
Yes (include as an attachment to this plan)
Have you conducted research on the company that you are negotiating with?

Have you completed the Supplier Preferencing tool to better understand how they view us?
Yes (include as an attachment to this plan)
Have you read their financial reports?
Are you aware of precedents that could assist your cause?

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