Contract Management : Assignment

Added on - 21 Jul 2020

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PROJECT PROCUREMENT
TABLE OF CONTENTSQUESTION 1...................................................................................................................................1Determining basic factors which are used to negotiate an agreement....................................1Framing a negotiating strategy for MFB company................................................................3QUESTION 2...................................................................................................................................4Analysing and selecting some effectual techniques for contract management......................4QUESTION 3...................................................................................................................................8Analysing role of commercial terms and conditions, UCC and............................................8Role of commercial terms and conditions..............................................................................8Uniform commercial code......................................................................................................8Government rules applicable on outcomes of MFB...............................................................9REFERENCES..............................................................................................................................10
QUESTION 1Determining basic factors which are used to negotiate an agreementA procedure in which specific plan or schedule is prepared at the workplace andimplemented in the business is known as project procurement. There are several kinds of projectsand plans made by an organisation for which this specific aspect is highly supportive. Apart fromthe projects, at the time of dealing with contract and managing also the project procurementtaken into account by the firms. The present study is based on a case study of the multinationalF&B company where scenario of the energy sources is considered. As per the case, the cited firmis going to contract with GEP market intelligence for determining effective price of natural gas.GEP is a public limited enterprise which mainly operates in the procurement service where itprovides consultancy for outsourcing, contracting etc. to various firms (De Araújo, Alencar, andde Miranda Mota, 2017). In the current scenario, contract made among two parties i.e. MFBcompany and the GEP market intelligence. The MFB firm wants to analyse supply and demandconditions of the natural gas which will help to make effectual pricing judgements. For thisparticular service, MFB contracts with the GEP market which will support to it in order toanalyse the whole market situations in proper manner.When MFB is going to make contract then using negotiation strategies because thesehelps to deal at the low cost. While negotiating for a contract, there are several elementsconsidered by the party. In the current case study, some factors are analysed which are majorlyused by the firms or party when negotiating for the contract. Further, such factors for effectivenegotiation related to contract of MFB business organisation are analysed below:Power:In any business environment negotiation easily gets converted into the argumentswhere some aspects are fierce due to which satisfactory outcomes cannot to be achieved.Apart from this, sometimes discussing turns into quarrelling where contract cannot benegotiated in beneficial way. Therefore, instead to using power at the time of negotiating,party like MFB firm should discuss calmly. The reason is that aggression in the humannever provides a good outcome. Further, when the party thinks that some conditions areout of hand then it should take some time and then negotiate for the contract (Davis,2014). Hence, power should completely avoid when party is negotiating for the particularcontract.1
Communication:Another aspect which necessary to be kept in mind while negotiating aplan is communication. Generally, a successful and beneficial negotiation is not a part ofcompromise but instead of this when effective communication done between both partiesthen objectives can be properly achieved. As per this, when one party like GEP marketspeaks then MFB should keep calm and listen carefully. Moreover, active listeningcommunication skills must be there in the parties at the time of negotiating of a contract.Apart from this, when party listens and speaks all the things related to contract in anunderstood manner then negotiation can become effectual (Mosley and Bubshait, 2017).Smooth conversation makes the deal better where negotiation also become effective atthe working place.Options:Before negotiating on particular plan or contract, party must design options forthat instead of only positions. Under this, one party creates several options which help tomeet interest of both the parties involved in negotiation i.e. MFB firm and GEP market.At the time of making options for the negotiation both parties should be beneficialproperly. On the other side, if the parties unable to make beneficial options or alternativesthen effective negotiation cannot be done ofthecontract. The reason is that until andunless both parties are not satisfied then proper negotiation is not possible among MFBenterprise and GEP market.Leverage:An aspect in which financial as well as ethical boundaries of contract comeinto consideration is identified as leverage. At the time of negotiating for project orcontract the party must discuss things and aspects related to financial conditions (Pheng,2018). If it shows poor situations and extremely requirements of the contract then farenegotiation can be possible. Other than this, before meeting among the parties, MFBshould make a detailed plan along with setting limits. It will help to bargain with GEPmarket where deal of analysing demand and supply of natural gas can be signed at thelower cost.Alternative:When the company or party is going to negotiate then it must havealternatives and options to enter in that. The reason is that, if GEP market not offersservices and consultancy at lower or affordable prices then MFB can go with anotherchance (Fisher and Ury, 2008). In accordance to this, if the party has better alternatives at2
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