Assignment Task
Task 1 – 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
-
- Negotiation PlanContract: [Number] – [Name]
- Document number: [TRIM Record Number] Date:
- Contact detailsName: Position:
- Business Unit: Division:
- Phone: Email:
- IntroductionThe 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).
- Negotiation planContract information and partiesRFx/Contract Number RFx/Contract Name Organisations planned to take part in the negotiations Participants and authorityProcurementName Title Role
- Name Job Title, Organisation Chief Negotiator
- Name Job Title, Organisation Secretariat
- Name Job Title, Organisation Observer
- Note: A minimum of two Procurement participants are required in all negotiations
- SupplierName Title Role (if known)
- Name Job Title, Organisation Chief Negotiator
- Name Job Title, Organisation Secretariat
- Name Job Title, Organisation Observer
- Are you satisfied that the negotiators from the other side have sufficient authority to bring negotiations to a successful conclusion?
- ? Yes? NoLocation and expected durationEnsure the location is suitable and conducive to a positive outcome. Locations should be convenient, comfortable, allow for uninterrupted negotiations and have the capacity for teams to break out to confer and strategise.
- Location of negotiations Planned negotiation start date Planned negotiation end date Expected number of meetings Reason for negotiationsWhy are negotiations required?(provide supporting information) Who has approved the decision to negotiate?(provide details of briefing note if appropriate) Was the need for negotiations anticipated in the procurement strategy and were respondents advised of this in the RFx documentation? If not, seek legal advice before proceeding. Probity informationProbityAre there any probity concerns with the proposed negotiation?
- ? Yes? NoIf so please outline the issues and comment on how they are being addressed.
- Concerns Mitigations
- Have probity requirements been discussed with the negotiation team?
- ? Yes? NoProcurement conduct planThe 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?
- ? Yes? NoTRIM Document Number/s Are there any unresolved Conflicts of Interests for participants involved in the negotiation?
- ? Yes? NoProbity advisorIs a probity advisor required?
- ? Yes? NoIf yes, please outline why a probity advisor is required.
- Negotiation protocolThe 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?
- ? Yes? NoWhat are the areas of particular concern that warrant a negotiation protocol?
- Government Information (Public Access) Act
- Have the other parties been advised that files and papers pertaining to the negotiation may be subject to the Government Information (Public Access) Act 2009 and could potentially have to be disclosed?
- ? Yes? NoReportingDescribe to whom as well as how and when the progress and results of negotiations will be reported.
- PreparationResearchIs the subject matter which will form part of the negotiations fully understood by all members of the negotiation team?
- ? Yes? NoList key areas that will need to be addressed
- Do you thoroughly understand the products/services and the supply market?
- ? Yes? NoHave you completed the Supply Positioning tool?
- ? Yes (include as an attachment to this plan)
- ? NoList market issues that need to be taken into consideration.
- Have you conducted research on the company that you are negotiating with?
- ? Yes? NoWhat have you discovered?
- Have you completed the Supplier Preferencing tool to better understand how they view us?
- ? Yes (include as an attachment to this plan)
- ? NoHave you read their financial reports?
- ? Yes? NoWhat have you discovered?
- Are you aware of precedents that could assist your cause?
- ? Yes? NoIf yes what are they?
- Is an expert category and/or legal expertise required assist with the negotiations?
- ? Category – Insert name if known
- ? Legal – Insert name if known
- ? No experts required
- InterestsOur interests Their interests
- Our strengths and weaknessesStrengths Weaknesses
- Their anticipated strengths and weaknessesStrengths Weaknesses
- RisksOur risks Their risks
- Competitive pressureWhat competitive pressures does the other party face? Can what is being offered be sourced elsewhere?
- If so, how difficult would the sourcing be? How important is this deal to them? Alternatives to a negotiated agreementWhat alternatives do we have if the negotiation is lengthy and unsatisfactory or ends without agreement? What is our best alternative to a Negotiated Agreement (BATNA)?
- (Note: a strong BATNA position means a strong negotiation position) What could improve our BATNA? Can we remove constraints and improve our BATNA position? Their alternatives to a negotiated agreementWhat alternatives do we think they have if the negotiation ends without agreement? What is their best alternative to a Negotiated Agreement (BATNA)?
- (Note: a strong BATNA position means a strong negotiation position) What could improve their BATNA? Can we remove constraints and improve our BATNA position? Objectives and negotiation pointsOur objectivesList and describe our objectives in order of priority and preference. Consider if each objective is a must have or a nice to have.
- Objective Must Nice
- Objective A X Objective B X
- Their objectivesList and describe what you think their objectives may be, in order of priority and preference. Consider if each objective is a must have or a nice to have for them.
- Objective Must Nice
- Objective A X Objective B X
- Negotiation pointsNegotiation Point Current Position Revised Position Must Nice
- ConcessionsConcession List the concessions that we will be prepared to consider
- PositionsOur positionClearly and systematically outline our starting position. [Guide Note: Consider the credibility of your targets. Are they too ambitious? Not ambitious enough? Are they realistic?]
- Their anticipated positionClearly and systematically outline what we think their starting position will be.
- Best case scenarioDescribe what you think our best case result would be.
- Bottom lineWhat is our worst case acceptable negotiated position?
- ApprovalsThis Negotiation Plan must be reviewed and approved by your director prior to proceeding with negotiations.
- Name Name Signature Date
- Prepared by Reviewed by Approved by
- Appendix A - Qualities of an effective negotiatorAn effective negotiator:
- prepares carefully, analyses and thinks the issues through
- uses every negotiation meeting to learn more and prepare further
- is confident, listens, questions and contests without aggression
- is adaptive to the prevailing atmosphere of the negotiation and can be resolved and firm when needed
- thinks before speaking, communicates clearly and creates an atmosphere of trust
- recognises position shifts and takes advantage of opportunities
- will look to pick up a benefit in return before conceding a point (i.e. If we agree to this, will you agree to that)
- considers strengths and weaknesses from both sides as well as time constraints influencing the negotiation and uses this knowledge to tactical advantage when appropriate
- understands where the obstacles are and can suggest imaginative and practical ways forward. Can produce reasoned options that can be beneficial to both sides
- works with the other side to generate a sense of ownership for solutions put forward
- focuses on interests, not on people and positions and never loses sight of objectives throughout the negotiation process
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