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Negotiation

 
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Group Charter: 

The purpose of the Negotiation Network is to grow the knowledge and performance of its members by providing insights to best practices, emerging practices and new trends in negotiations. Members will participate in open discussions and draw/share from knowledge and ideas that are current and relevant.

The objectives will be met by sharing ideas, discussing challenges, exploring new directions and, where appropriate, initiating research or inviting experts to present on key topics related to negotiations.

Meetings will be virtual (by phone or webinar) unless in specific cases there is an agreed wish to have physical meetings or workshops to develop specific initiatives.

 

Group Mission/Vision:

Provide fellow members with insights to best practices, emerging practices and new trends in negotiations in order to provide their companies with the most value possible.

Objectives:

 
 
Network Updates

IACCM 2019 Benchmark Report

More than 750 organizations participated in IACCM's latest study, which covers all the critical areas of organizational design and performance. Reporting lines, performance measures, role and responsibilities, headcount, sources of learning - these and more are covered with extensive data, analysis, and IACCM observations and commentary. When reviewing the findings, please remember that in many cases they may reflect an average. Where necessary, you may wish to contact us to obtain more precise data applicable to your industry or size of organization. Equally, you may wish to contact us about undertaking a process capability assessment and workshop to assist your improvement journey.

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Brexit: a classic in how not to negotiate

Negotiating something as fundamental (and emotive) as Brexit was never going to be easy. In the end, it has turned into a fascinating case study that will doubtless be used and cited for decades to come.

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Price isn't everything

In many cases, organizations continue to make purchasing decisions based on price. It has been baked into their DNA, with the mantra of 'commoditization' backed up by software that drives price-based competitive auctions and measurement systems that continue to monitor 'negotiated savings'. In the public sector, this is further reinforced by public procurement rules that blithely ignore concepts of value and have failed to adapt to the nature of today's supply requirements.

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reasonable day rates for freelance Contract Mgr in Germany

Hi all, I am in discussion with a small (20 Persons) and highly specialized, high tech start-up (Management-buy-out) a Telco-offspin active in the aerospace industry. We talk about a part-time engagement, max 5-10h per week what is the bandwith of reasonable hourly rates / day rates for an experienced Contract Mgr in Germany? any idea, hint, own experience in other fields? would appreciate to hear what you think.

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Uncapped limitation of liability

I work with a Company that supplies products and services (medical equipment, chemicals, diagnostic solutions, procurement management for life science companies etc) to both private parties and government entities. Our company standard is to cap limitation of liability based on estimated annual revenue from a particular customer contract. However, the Company has carved out exceptions to certain low value contracts and to contracts with state and federal entities to allow an unlimited cap on liability. While this seems like a practical approach, I am not too sure if this is the best approach as I see the risk/reward to be disproportionate. i.e. large value deals have a cap while small value deals can expose the company to an unlimited liability. Do any of you follow a similar approach within your organisation? What risk do you see if we are to continue with this approach since the third party liability cannot be capped anyways and circumstances where the company may be exposed to liability is limited. Thank you

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EPC Contract Payment Mechanism

I am looking for pro's and con's of introducing a mile stone based payment mechanism for an EPC Contract compared to Progress based Payment mechanism

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Contract Agreement

We are in a debate within the organization that I work for and that is - whether it is a good (or best) practice to always execute a Contract Agreement (signed by both parties) while concluding a tendering/RFP process irrespective of the value of the Contract. As per our present practice, system generated Purchase orders are issued for material supply agreements (irrespective of value) and Contract Agreements are executed only for service agreements beyond a certain threshold value. I believe some of you must be experiencing similar practice (and thus may be having similar question) in your respective organizations. Looking forward to having your views on the subject. Best regards, Pallab Mukherjee

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Management of PoC in agreements in relation to GDPR

I have recevied a NDA where the counterparty has not included a Point of Contact (PoC) - NDA's previously received from this party always stated a PoC. They say that the General Data Protection Regulation (GDPR) prohibits them to specify a contact person in their agreements. One can only refer to a title and/or funtion. Within my organization we always state one or more PoC's as this person(s) are the ones handling any information that is classified as confidential. Has anyone discussed this issue within your organization? If so - what is your view on it? And if there is no PoC in the agreement - how can you make sure that the confidential information is handled in a proper manner?

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as-a-Service contracts

Hi I shared our recent research on A Guide to Fair Contracts for 'As a Service' at our Shanghai member meeting today. Have others read it - see https://www.iaccm.com/services/research/ - and does it match your experience of 'negotiating' these type of contracts? Are they fair or unduly weighted in the service provider's favour?

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