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The Key Negotiation Techniques To Use

July 08, 2021

Blog

The Key Negotiation Techniques To Use

July 08, 2021

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Onderwerp: Gids

Niveau: Gemiddeld

3 minuten leestijd

Several procedures are possible in the procurement world. For example, one can opt for a negotiated procedure without notice in the event of no (suitable) tenders. In addition, one can switch to a competitive procedure with negotiation when the tenders are irregular or unacceptable. A negotiated tender is delivered in one phase and takes place between client and contractor. In a negotiated procedure, several contractors are allowed to submit a request for participation, after which the contracting party makes a selection of contractors who may actually submit an initial tender. Once this is done, negotiations take place and a final tender with a chosen contractor follows. This negotiation process is very important because in some cases the requirements may be unclear or unacceptable to both parties. Negotiating can therefore be more advantageous for both parties.

In the case of a negotiated procedure without notice, at least three participants are invited to submit a request for participation. These participants must meet three requirements. For example, they must meet the obligations regarding the payment of social and tax debts, have the necessary accreditation, and not be in one of the exclusion cases (Article 69 of the Public Procurement Act of June 17, 2016).

What factors are important for this?

In the negotiated procedure, it is especially important to consider the priorities of the contracting party on the one hand and the bidding party on the other. In order to negotiate well, a number of negotiation techniques should certainly not be missed. For example, a bid manager can go through these five steps to achieve an adequate negotiation procedure.

Backup plan

Beforehand, as a bid manager, you can determine how far you want to go in negotiating and when you will step away from the assignment. Consider exactly what you want to get out of the contract and what your requirements are. Prepare well in advance and ask yourself questions such as "what is our company vision", "what is the most favorable outcome", "what is achievable" and "what are my limits". By asking yourself these questions in advance and discussing the outcomes with the other party, the conversation can be steered in a certain desired direction.

Determine desires

To enter into a negotiation, it is important to identify the buyer's wishes. What exactly does the buyer want? What are the interests of the contracting party and what exactly is holding them back? Negotiations today focus on the interests of both parties and an outcome between them. It is therefore no longer a question of getting everything out of the other party.

Prioritizing

Sit down with the buyer and discuss all the established wishes. Make sure that this meeting is physical and face to face so that the other party has no insight into your notes. Go through all the wishes and rank them in order of priority. This way it is clear what is important in the eyes of the buyer and it is clear to you which wishes you should be able to fulfill.

Don't give it away

Never give anything away without getting something in return. It is therefore important that you also make your wishes and interests clear. So be specific about what you want to get out of this assignment. By making these agreements in advance, you ensure that there are no surprises afterward.

Recognize value

Make sure that you can deliver something of great value to the contracting party at a low cost to yourself. Don't name your price right away, but wait for the other party's price.

It may sound obvious, but the best way to become a good negotiator is simply to practice a lot. Be patient, a negotiation can sometimes take a long time, and only stop the negotiation when the desired effect is achieved.

Several procedures are possible in the procurement world. For example, one can opt for a negotiated procedure without notice in the event of no (suitable) tenders. In addition, one can switch to a competitive procedure with negotiation when the tenders are irregular or unacceptable. A negotiated tender is delivered in one phase and takes place between client and contractor. In a negotiated procedure, several contractors are allowed to submit a request for participation, after which the contracting party makes a selection of contractors who may actually submit an initial tender. Once this is done, negotiations take place and a final tender with a chosen contractor follows. This negotiation process is very important because in some cases the requirements may be unclear or unacceptable to both parties. Negotiating can therefore be more advantageous for both parties.

In the case of a negotiated procedure without notice, at least three participants are invited to submit a request for participation. These participants must meet three requirements. For example, they must meet the obligations regarding the payment of social and tax debts, have the necessary accreditation, and not be in one of the exclusion cases (Article 69 of the Public Procurement Act of June 17, 2016).

What factors are important for this?

In the negotiated procedure, it is especially important to consider the priorities of the contracting party on the one hand and the bidding party on the other. In order to negotiate well, a number of negotiation techniques should certainly not be missed. For example, a bid manager can go through these five steps to achieve an adequate negotiation procedure.

Backup plan

Beforehand, as a bid manager, you can determine how far you want to go in negotiating and when you will step away from the assignment. Consider exactly what you want to get out of the contract and what your requirements are. Prepare well in advance and ask yourself questions such as "what is our company vision", "what is the most favorable outcome", "what is achievable" and "what are my limits". By asking yourself these questions in advance and discussing the outcomes with the other party, the conversation can be steered in a certain desired direction.

Determine desires

To enter into a negotiation, it is important to identify the buyer's wishes. What exactly does the buyer want? What are the interests of the contracting party and what exactly is holding them back? Negotiations today focus on the interests of both parties and an outcome between them. It is therefore no longer a question of getting everything out of the other party.

Prioritizing

Sit down with the buyer and discuss all the established wishes. Make sure that this meeting is physical and face to face so that the other party has no insight into your notes. Go through all the wishes and rank them in order of priority. This way it is clear what is important in the eyes of the buyer and it is clear to you which wishes you should be able to fulfill.

Don't give it away

Never give anything away without getting something in return. It is therefore important that you also make your wishes and interests clear. So be specific about what you want to get out of this assignment. By making these agreements in advance, you ensure that there are no surprises afterward.

Recognize value

Make sure that you can deliver something of great value to the contracting party at a low cost to yourself. Don't name your price right away, but wait for the other party's price.

It may sound obvious, but the best way to become a good negotiator is simply to practice a lot. Be patient, a negotiation can sometimes take a long time, and only stop the negotiation when the desired effect is achieved.

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