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...

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 co
espondence 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 Plan
    Contract: [Number] – [Name]
    Document number: [TRIM Record Number]
    Date:
Contact details
    Name:
    Position:
    Business Unit:
    Division:
    Phone:
    Email:
1. Introduction
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).
1. Negotiation plan
1. Contract information and parties
    RFx/Contract Numbe
    
    RFx/Contract Name
    
    Organisations planned to take part in the negotiations
    
1. Participants and authority
1. Procurement
    Name
    Title
    Role
    Name
    Job Title, Organisation
    Chief Negotiato
    Name
    Job Title, Organisation
    Secretariat
    Name
    Job Title, Organisation
    Observe
Note: A minimum of two Procurement participants are required in all negotiations
1. Supplie
    Name
    Title
    Role (if known)
    Name
    Job Title, Organisation
    Chief Negotiato
    Name
    Job Title, Organisation
    Secretariat
    Name
    Job Title, Organisation
    Observe
Are you satisfied that the negotiators from the other side have sufficient authority to
ing negotiations to a successful conclusion?
☐ Yes
☐ No
1. Location and expected duration
Ensure the location is suitable and conducive to a positive outcome. Locations should be convenient, comfortable, allow for uninte
upted negotiations and have the capacity for teams to
eak out to confer and strategise.
    Location of negotiations
    
    Planned negotiation start date
    
    Planned negotiation end date
    
    Expected number of meetings
    
1. Reason for negotiations
    Why are negotiations required?
(provide supporting information)
    
    Who has approved the decision to negotiate?
(provide details of
iefing 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.
    
1. Probity information
2. Probity
Are there any probity concerns with the proposed negotiation?
☐ Yes
☐ No
If 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
☐ No
2. 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?
☐ Yes
☐ No
    TRIM Document Numbe
s
    
Are there any unresolved Conflicts of Interests for participants involved in the negotiation?
☐ Yes
☐ No
2. Probity adviso
Is a probity advisor required?
☐ Yes
☐ No
If yes, please outline why a probity advisor is required.
    
2. 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?
☐ Yes
☐ No
What are the areas of particular concern that wa
ant a negotiation protocol?
    
2. 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
☐ No
2. Reporting
Describe to whom as well as how and when the progress and results of negotiations will be reported.
    
1. Preparation
3. Research
Is the subject matter which will form part of the negotiations fully understood by all members of the negotiation team?
☐ Yes
☐ No
List key areas that will need to be addressed
    
Do you thoroughly understand the products/services and the supply market?
☐ Yes
☐ No
Have you completed the Supply Positioning tool?
☐ Yes (include as an attachment to this plan)
☐ No
List market issues that need to be taken into consideration.
    
Have you conducted research on the company that you are negotiating with?
☐ Yes
☐ No
What 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)
☐ No
Have you read their financial reports?
☐ Yes
☐ No
What have you discovered?
    
Are you aware of precedents that could assist your cause?
☐ Yes
☐ No
If 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
3. Interests
    Our interests
    Their interests
    
    
    
    
    
    
    
    
3. Our strengths and weaknesses
    Strengths
    Weaknesses
    
    
    
    
    
    
    
    
3. Their anticipated strengths and weaknesses
    Strengths
    Weaknesses
    
    
    
    
    
    
    
    
3. Risks
    Our risks
    Their risks
    
    
    
    
    
    
    
    
3. Competitive pressure
    What 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?
    
3. Alternatives to a negotiated agreement
    What 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?
    
3. Their alternatives to a negotiated agreement
    What 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?
    
1. Objectives and negotiation points
4. Our objectives
List 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
    
    
    
    
    
    
    
    
    
4. Their objectives
List 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
    
    
    
    
    
    
    
    
    
4. Negotiation points
    Negotiation Point
    Cu
ent Position
    Revised Position
    Must
    Nice
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
4. Concessions
    Concession
    List the concessions that we will be prepared to conside
    
    
    
    
    
    
    
    
    
    
    
    
    
    
1. Positions
5. Our position
Clearly and systematically outline our starting position.
[Guide Note: Consider the credibility of your targets. Are they too ambitious? Not ambitious enough? Are they realistic?]
    
5. Their anticipated position
Clearly and systematically outline what we think their starting position will be.
    
5. Best case scenario
Describe what you think our best case result would be.
    
5. Bottom line
What is our worst case acceptable negotiated position?
    
1. Approvals
This 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 negotiato
An effective negotiator:
prepares carefully, analyses and thinks the issues through
uses every negotiation meeting to learn more and prepare furthe
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
ecognises 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
compares the proposed solution(s) to his party’s BATNA before finalising any agreement
consider role-plays or conducting a mock negotiation prior to the formal negotiation meeting.
Appendix B – Negotiation roles and responsibilities
In considering the make-up of the negotiation team, take into account the relevant and complementary skills and knowledge of participants by:
involving the manager who will be responsible for ongoing management