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Contents
Negotiation Plan..............................................................................................................................4
Contact details.................................................................................................................................4
1. Introduction...............................................................................................................................4
2. Negotiation plan......................................................................................................................5
2.1 Contract information and parties..............................................................................5
2.2 Participants and authority............................................................................................5
2.2.1 Procurement..................................................................................................................5
2.2.2 Supplier...........................................................................................................................6
2.3 Location and expected duration................................................................................6
2.4 Reason for negotiations................................................................................................7
3. Probity information.................................................................................................................7
3.1 Probity.................................................................................................................................7
3.2 Procurement conduct plan...........................................................................................8
3.3 Probity advisor.................................................................................................................8
3.4 Negotiation protocol.......................................................................................................9
3.5 Government Information (Public Access) Act........................................................9
3.6 Reporting..........................................................................................................................10
4. Preparation..............................................................................................................................10
4.1 Research...........................................................................................................................10
4.2 Interests............................................................................................................................13
4.3 Our strengths and weaknesses................................................................................13
4.4 Their anticipated strengths and weaknesses......................................................14
4.5 Risks...................................................................................................................................14
4.6 Competitive pressure...................................................................................................15
4.7 Alternatives to a negotiated agreement...............................................................15
4.8 Their alternatives to a negotiated agreement....................................................16
5. Objectives and negotiation points..................................................................................16
5.1 Our objectives................................................................................................................16
5.2 Their objectives..............................................................................................................17
5.3 Negotiation points.........................................................................................................17
5.4 Concessions....................................................................................................................18
6. Positions...................................................................................................................................18
6.1 Our position.....................................................................................................................18
6.2 Their anticipated position...........................................................................................19

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 6.3 Best case scenario........................................................................................................19
6.4 Bottom line......................................................................................................................19
7. Approvals.................................................................................................................................20
A - Qualities of an effective negotiator.................................................................................21
Appendix B – Negotiation roles and responsibilities.........................................................22
Appendix C – Additional resources..........................................................................................24

Task 1 – Infrastructure Negotiation

Your organization 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

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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 Plan
Contract: [101] – [0160] – [cafe car park]

Document number: [TRIM Record Date: 08-28-2021

Number]
271

Contact details

Name: Rose Position: Manager

Business Unit: 12 Division: Marketing

Phone: main 0378657893 Email: Rose@gmail.com

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.

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 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).

2. Negotiation plan

2.1 Contract information and parties

RFx/Contract Number FERSB5827G

RFx/Contract Name Infrastructure negotiation

Organisations planned to take

Organization and \Client
part in the negotiations

2.2 Participants and authority

2.2.1Procurement

Name Title Role

Bob Executive manager Chief Negotiator

Wang manager Secretariat

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Julie Secretary Critic/observer

Note: A minimum of two Procurement participants are required in all

negotiations

2.2.2Supplier

John Role (if known)

Bryan Chief manager Chief Negotiator

Roman Assistant secretariat

Daniel Employee Critic/observer

Are you satisfied that the negotiators from the other side have sufficient
authority to bring negotiations to a successful conclusion?

☐ Yes ---- I am satisfied that the negotiators from the other side have
sufficient authority to bring negotiations to a successful conclusion as
they are indeed knowlegable and have the permission from their
respective heads.

☐ No

2.3 Location and expected duration

Ensure 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
strategize.

Location of negotiations Beck and beans Café

Planned negotiation start date 09/06/2021

Planned negotiation end date 09/14/2021

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Expected number of meetings Five (05)

2.4 Reason for negotiations

Why are negotiations required? To find out how the stakeholders view the potential deal
(provide supporting and what interests. To negotiate deadlines, costs,
information) design and project started.

Who has approved the decision Marketing Manager has approved the
to negotiate? decision to negotiate
(provide details of briefing
note if appropriate)

Was the need for negotiations Yes, the need for negotiations were
anticipated in the procurement anticipated in the RFx documentation.
strategy and were respondents Procurement strategy and were respondent
advised of this in the RFx advised of this in RFx documentation.
documentation? If not, seek
legal advice before proceeding.

3. Probity information

3.1 Probity

Are there any probity concerns with the proposed negotiation?

☐ Yes

☐ No

only there are probity concerns but along with there are integrative and
distributive issues too. So, in order to how to address them for

Concerns mitigations
Distributive it is like a fixed portion which
cannot be increased or
decreased which is going to be
divided in their respective
proportion withing the parties
and need to be deal by adding

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 value to it and approaching it
differently.
Integrative we can bundle issues together
to find options the both sides
prefer. We can actually create
value. But when we choose
instead to negotiate each issue
separately and treat them as
distributive, both sides only get
a piece of what they actually
want. In this case we divide the
value.

Have probity requirements been discussed with the negotiation team?

☐ Yes, they have been discussed with the negotiation team.

☐ No

3.2 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, the negotiation team signed the Code of Conduct, Probity and
Confidentiality Agreement

☐ No

TRIM Document Number/s 271

Are there any unresolved Conflicts of Interests for participants involved

in the negotiation?

☐ Yes

☐ No, there are not any unresolved Conflicts of Interests for

participants involved in the negotiation.

3.3 Probity advisor

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 Is a probity advisor required?

☐ Yes, a probity advisor is required.

☐ No

If yes, please outline why a probity advisor is required.

Probity advisers can guide us on issues concerning integrity,

fairness and accountability that may arise throughout
negotiation process. Probity auditors can also verify that
agencies processes are consistent with government laws,
legislation and guidelines.

3.4 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, a negotiation protocol be created and signed by both parties

before the beginning of negotiations.

☐ No

What are the areas of particular concern that warrant a negotiation

protocol?

 Preparation
 having a strategy
 making yourself clear
 considering a win-win situation for both the parties.

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3.5 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, 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.

☐ No

3.6 Reporting

Describe to whom as well as how and when the progress and results of
negotiations will be reported.

Planning - PGM (process group manager)

Resource Allocation - PGM
Staff Management - PGM
Developing Safety Management
Policies - Project HSEQ Coordinating (health, safety, environment and quality)
Training Programs - Project HSEQ
Investigating Workplace incidents –
Project HSEQ - Preparing Reports
Project HSEQ
Project Community Liaison Manager
Establishing communication between community and the organization
Project Community Manager
Project Administration Manager Assess staff performance
Project Administration Manager Manage schedules and deadlines
Project Administration Manager Monitor inventory of office supplies
Project Administration Manager

4. Preparation

4.1 Research

Is the subject matter which will form part of the negotiations fully

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understood by all members of the negotiation team?

☐ Yes, the subject matter which will form part of the negotiations fully
understood by all members of the negotiation team

☐ No

List key areas that will need to be addressed

 Actual Cost of Construction v Agreed Amounts

 Changes to design and construction standard

 Refunds and Access to refunds

 Land acquisition

 Access to Authority Land For Infrastructure

 Security

Do you thoroughly understand the products/services and the supply

market?

☐ Yes, I thoroughly understand the products/services and the supply

market

☐ No

Have you completed the Supply Positioning tool?

☐ Yes (include as an attachment to this plan)

☐ No, I haven’t completed the Supply Positioning tool

List market issues that need to be taken into consideration.

 Lack of commercial department

 Invisibility of business

 Issues with price of the product

 Not having a marketing plan

 Lack of brand image, professional reputation and lack of

online presence

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 Have you conducted research on the company that you are negotiating
with?

☐ Yes

☐ No

What have you discovered?

 The company believes in a fair deal and generally works for

short term agreement, and its industry approach is basically on
small scale, and competitors in that area are more as most of
the organizations generally likes to do small business and by
further reading trade journals and news articles, visiting its
website and its latest advertisements we came to know that
they are looking for some new organizations to deal with and
are trying to increase their approach within the market to
increase their supply with their quality material.

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?

Though their business is on small scale they are expanding their trade and
revenue is increased every year that means they have ambitions and spirit.
Their latest funds provided for their new project is also increased every year
that means through their trade their profit is also increasing.

Are you aware of precedents that could assist your cause?

☐ Yes, I am aware of precedents that could assist our cause

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 ☐ No ------

If yes what are they?

Precedent means that the law is developed vertically as cases move through the court system. A
higher court can overrule a lower court. So, one party to a claim may ask a higher level of court to
review the outcome of their case and that higher court will either change, or uphold, the lower
court's decision.

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

4.2 Interests

Our interests Their interests

Quality material with lowest price

Optimal price for the desired product
possible

Remediating footpaths, car parks and

line marking around RAAF Base Point Better plan
Cook and RAAF Williams Laverton

Transporting material with proper

Quality material supplied up to the
safety and requesting a refund when
mark.
the material is tempered

The scope also includes remediating

the rainwater drainage on a building
Time should be less
and the stormwater drain on the
airfield at RAAF Base Point Cook.

4.3 Our strengths and weaknesses

Strengths Weaknesses

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We have continuous work in our Lack of man power to handle all the
hands work load

We have proper coordination within No mediator in our project

our designated teams proceedings

Our negotiation team includes a

Handling a new client is somewhat
person for the position of critic which
problematic
is very good.

Our way of work or the final result is

appreciated by our clients which
gives us motivation ton continue this
work.

Experience in our field

4.4 Their anticipated strengths and weaknesses

Strengths Weaknesses

Their business has continuous work

Rating of their output result
flow

They do not have such transparency

They are somehow able to increase
in their way of work between higher
their trade through different regions
and lower officials.

They are ambitious and have a spirit No mediator as well as lack of man
to do trade power.

Their goods are of very good quality

and they are very reasonable which
is their strength which supports
them to stay in the competition with
other companies

Budget deadline

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4.5 Risks

Our risks Their risks

We can’t afford to lose this deal They also can’t afford to lose the deal

We need to get the material as soon Their stock is piling up so they

as possible quickly need to cut a deal.

They quickly need the required

They might not agree to our
materials otherwise they are going to
proposed price for the material.
lack in the market

Project failure Project failure

4.6 Competitive pressure

What competitive pressures 1. Number of competitors increases

does the other party face? 2. Growing Demand
3. Low Switching cost
4. Standardize service

Can what is being offered be Total landed cost. It is easy to focus on the
sourced elsewhere? lowest unit cost and assume that's the best
way to go
If so, how difficult would the
sourcing be?

How important is this deal to To further increase their business and

them? providing of necessary funds to their new
projects this deal is very important to them.

4.7 Alternatives to a negotiated agreement

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What alternatives do we have The best alternative to a negotiated
if the negotiation is lengthy agreement (BATNA) is the course of action
and unsatisfactory or ends that a party engaged in negotiations will
without agreement? take if talks fail, and no agreement can be
reached, but if it fails, we can restart our
negotiation process from the starting and
come up with easily agreed arguments so
that further though process can be carried
upon in next proceedings or can come up
with information which could help us to
lead to a successful negotiation,

What is our best alternative to The best alternative to a negotiated

a Negotiated Agreement agreement (BATNA) is the course of action
(BATNA)? that a party engaged in negotiations will
take if talks fail, and no agreement can be
(Note: a strong BATNA position
reached.
means a strong negotiation
position)

What could improve our 1. Two (or more) BATNAs Are Better than
BATNA? Can we remove One.
constraints and improve our 2. Don't Reveal a Weak BATNA.
BATNA position?
3. Don't Let Them Diminish Your BATNA.
4. Research the Other Party's BATNA

4.8 Their alternatives to a negotiated agreement

What alternatives do we think Due to their large business trade they can
they have if the negotiation approach other parties to provide their
ends without agreement? goods and services and we can go through
severe loss.

What is their best alternative If you know you have a good alternative,
to a Negotiated Agreement you do not need to concede as much,
(BATNA)? because you don't care as much if you get a
deal. You can also push the other side
(Note: a strong BATNA position
harder.
means a strong negotiation
position)

What could improve their Yes we can It is defined as the most

BATNA? Can we remove advantageous alternative that a
constraints and improve our negotiating party can take if negotiations
BATNA position? fail and an agreement. In essence, it sets
out the agreed elements of the deal,

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 includes a number of important protections
to all the parties involved and provides the
legal framework to complete the sale of a
property

5. Objectives and negotiation points

5.1 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.

Mu Nic
Objective
st e

To have minimal price X

Receiving quality product as expectations while negotiating X

Refund or return for any damaged good received X

Security provided X

5.2 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.

Mu Nic
Objective
st e

Order for bulk consignment X

Placing of consignments on regular intervals X

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Increase in supply on their behalf and increase in consumption on
X
our behalf to expand their trade

5.3 Negotiation points

Mu Nic
Negotiation Point Current Position Revised Position
st e

1) separate the people

Manager Manager
from the problem;

2) focus on interests, not

Director Director
positions

3) invent options for

Operator Operator
mutual gain

4) insist on objective
Operator Operator
criteria

5.4 Concessions

List the concessions that we will be prepared to

Concession
consider

High Priority preparation

High Priority Information exchange

Medium priority bargain

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Low priority conclude

Low priority execute

6. Positions

6.1 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?]

 We are realistic they agreed on the current terms which we

presented to them which they think are ready to take place
in action they did not accepted future further talks they
want to proceed in a systematic way though we can say
that they are ambitious in present not in future. We are
also ambitious involves risk-taking and setting goals that it
is possible to fail at.

6.2 Their anticipated position

 Their starting position would be that they will be proposing

their best deal on their behalf and will look forward on our
approach on that deal and try to negotiate with us in our
first proceeding, but they are over-ambitious means one is
taking on too much, too fast, without much regard for the
practical restrictions on the scope and pace of their plans

6.3 Best case scenario

Describe what you think our best-case result would be.

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  Best case scenario will be that both the parties will come
up with a win-win deal and the trade between the
companies will take place as soon as possible and in the
future both companies will benefit each other.

6.4 Bottom line

What is our worst case acceptable negotiated position?

 The proceedings will not take place as there will be

position where the deal cannot ben placed at any cost as
there are no favourable desirable outcomes for both the
parties and the second worst case scenario can be that the
deal will be stuck on some arguments which cannot
proceed further without one’s loss.

7. Approvals

This Negotiation Plan must be reviewed and approved by your director

prior to proceeding with negotiations.

Name Name Signature Date

19
 08/13/202
Prepared by Shubhi Shubhi
1

08/18/202
Reviewed by Lee Lee
1

08/25/202
Approved by Jack Jack
1

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A - Qualities of an effective negotiator
An 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

 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

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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 of the contract, e.g. the category manager or client
representative (if a client-specific contract)

 understanding whether the team has the required communication,

problem-solving, technical and financial skills, along with an
understanding of the relevant industry. The SWOT analysis tool may
assist in considering the team’s strengths and weaknesses. If
negotiations will include changes to the standard terms and
conditions of government agreements, ensure you have sought legal
advice prior to the negotiations and consider including a legal
representative on the negotiation team

 using professional advisors if the negotiations are likely to be

complex, where there may be difficulties reaching agreement, or if
there is a need for specific expert advice

 understanding the extent and limits of your authority to negotiate

terms. Clarify your delegation to act on behalf of NSW Procurement
prior to the negotiation meeting

 not overloading the team! A cast of thousands may slow down

negotiations and overwhelm the other party. Note that a minimum of
two NSW Procurement representatives must participate in the
negotiations.

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Role Responsibilities

Chief or lead  Final preparation of negotiation strategy

negotiator  Set agenda, introduce team members

 Keep “eye on the prize” – maintain

overarching view of negotiation process and
progress; keep discussions on track

Negotiation  May be chief negotiator

specialist/ advisor  Specialist advice on negotiation strategy and
tactics

Negotiator  Member of procurement team

 Contribute to preparation of strategy

 Participate in negotiations on the day

Technical expert  Provide specialist technical knowledge to

negotiation team

 Determine if proposals during negotiation

meet technical requirements

Legal advisor  Provide legal advice on proposed terms and

conditions

 Determine if amended clauses are acceptable

(subject to final sign-off by General Counsel)

Probity advisor  Independent observer of negotiation process

 Oversee preparations, negotiations and post-

negotiation processes to ensure probity provisions
are maintained

Observer  Member of procurement or management

team observing negotiations to ensure compliance
with NSW Procurement process and procedures

Note / minute taker  Administration or procurement support staff,

responsible for documenting key discussions,

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 drafting and finalizing minutes, seeking concurrence
from negotiation participants

Appendix C – Additional resources

The following resources are available to assist planning your negotiations

 Negotiation Protocol

 Negotiation Points Planning template

 Post Negotiation Review

 Supply Positioning tool

 Supplier Preferencing tool

 SWOT Analysis

 Balance of Power Tool

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Observation Checklist

Observation Criteria S NS
Obtained, interpreted and confirmed work requirements
Accessed, interpreted and applied documentation required to
conduct business negotiations
Identified and targeted available business opportunities
Facilitated discussions with stakeholders to develop strategies
and ideas to meet objectives
Analysed information to allow for assessment of the short-term
and long-term position of the business
Ensured agreed decisions and recommendations fall within the
operations business objectives and legislative requirements
Consulted and/or lobby key stakeholders who can assist in
achieving the objectives
Ensured preparation for the meeting is sufficient to enable
effective business negotiations and to achieve desired
objectives
Ensured contributions to the negotiations are clear, concise and
relevant to achieving business objectives
Documented/recorded in writing key outcomes of negotiations
according to workplace procedures
Evaluated outcomes of negotiations according to workplace
procedures
Referred outcomes of negotiations to key stakeholders
Reviewed outcomes of negotiations for improvement
Followed up, and circulate as necessary, outcomes and
decisions

8. References

: https://www.skillsyouneed.com/ips/negotiation.html

https://www.igi-global.com/dictionary/negotiation-support-systems-overview/35816

https://www.investopedia.com/terms/n/negotiation.asp

https://www.mindtools.com/pages/article/essential-negotiation.htm

Conclusion

In order to carry out a successful negotiation plan one must be able to present
their ideas more effectively and in a convenient manner. The communication skill
aspect is very important while carrying out any negotiations as an individual is
more convincing the chances of negotiation is pretty much high and also both
the organizations need to have a thorough understanding and must review about
working of each others organization how well they are doing these days and
whether it is beneficial for them to have a business relation with them. Further
both the organizations should realize about their internal strengths and
weaknesses so that they can improve upon them and also make some strategies
for upcoming problems, obligations during the negotiation period and quickly

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come up with ideas to tackle them and cover up as even smallest things are
noticed and if not covered up in time it can lead to a fail of the negotiation
journey.

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