Great question. You have certainly come to the right place for some expert advice. I hope others jump in as well. You can find an array of resources at your fingertips (including case studies).. if you go into the resource library (Resources > Resource Library) and search by category = Negotiation. I would particularly recommend:
IACCM Dubai Member Meeting April 2019 Presentations
Ask The Expert: Negotiating and Contracting in the Middle East
The Power of Intent Workshop - IACCM APAC Conference 2019
Do Procurement practices cause dishonesty?
Negotiating in a time of coronavirus
In Negotiations, Givers Are Smarter Than Takers
In addition, you may wish to consider our new Managing Contracts Virtually training program (which is currently included as a member benefit) .. Training > Managing Contracts Virtually.
If you need help accessing any of these materials, please contact me at email@example.com.
Dear Carrie, I have experience from pricing changes both during the negotiation process and during the contract lifecycle. Our clients have especially found this as an effective tool during negotiations to demonstrate risk/work-impact if the other party is requesting terms transferring an extensive part of the risk/work to them. By showing the cost-impact, the incentive for price increase becomes rather obvious which strengthens your negotiation position. Kind regards, Madeleine Willyams - Advokatfirmaet Negota AS, Norway.
• Seplat Petroleum Development Company Plc
1) This is novel to me. Reading your post, your organisation is on the supply side. If I am right, I work for an organisation on the buying side and will want to know how this can be of benefit for one on the buying side.
2) Is it possible to see a sample of just one of such clauses, to see how it was drafted?
Personally, I would say the 10 are still applicable today (Jan 2020). I also think the point about how fast the world is moving - particularly technology wise - is true and it has only sped up even more in the past 5 years.
• Contract Manager Canada Inc.
If the project is delayed by the Employer... first make sure that there were no delay causes by the Contractor on the previous agreed milestones, for you to be fully eligible for a compensation. Now the tricky part to kick in, is the delay resulting to only warranty extension, which means that all construction, installation and pre-commissioning done? Just ensure that you've all signed-off documents that it's pre-commissioned. if so, your service team will provide an additional cost for extra-warranty coverage and you can lever it as a scope-creep. This is not an issue, if all of your works are completed and no more to come back to do additional works, then you need to add remob to commissioning cost plus the extended warranty cost and get a CO prior to agreement of extension. Don't forget to have your insurance company informed on this extension, as they were notified of previous warranty commitment, not the new one. Hope this serves.
• Seiersen Enterprises
It strikes me that the actual costs of extending the warrantee might be considered.
These may be nil if the delay in the project delays the in service date, and thus the risk of fault.
The onus might be put on the supplier to prove the materiality of additional warrantee costs whatever they might be.
• Capgemini India
As warranty effort is provisioned to fix bugs of contractor's defects, since the delay is caused by the Employer, the Contractor is entitiled to claim additional cost. Not only is this instance 'due to failure of the employer (customer)', which is not due to cause by the contractor, there could also be a delay in the service start date, which means the plans for service could be impacted. Therefore, I believe the additional cost is justified.
Our service department has actually been able to provide a number for us by unit of what an additional year of warranty costs us. Do you know how much the first year costs you? You could always just submit that as an estimate for year two.
New International Technology Co.
Mediocrity may apply at two levels - individual or process. In my experience, mediocre negotiators can still achieve good results if there is an excellent process, but the opposite may not be true. What do you think?
• New International Technology Co.
it is an interesting point ; in other words, how an individual can 'survive' a mediocre organization and tot only specifically on negotiations...or viceversa ; I have experienced both the cases: most probably an excellent process prevails, it has to, also because it would be difficult for an excellent individual alone to substantially modify a mediocre process ; but, again, that's very interesting from the point of view of dynamics
Bombardier Transportation Austria GmbH
The original ROI report led to further work captured in the Ten Pitfalls report.The 9.2% was an average bottom line loss made up of procurement and sales leakages; analysis shows significant variations by industry . Members who have used the data to support internal analysis have validated the study findings and showed many had even higher losses. You can use the Ten Pitfalls as a checklist of a sample of your contracts to see the extent to which such issues are occurring and the scale of impact.
Using the IACCM Maturity Model will also reveal which process weaknesses are adding to the losses.
Picking up on Jennie's reply, we used the ten pitfalls in the way indicated and have been able to generate substantial revenue improvements as a result. Our work looked at just sales contracts and is for capital projects and support services in the oil and gas sector. The approach we took was to explore how many of our agreements delivered below forecast revenues and / or margins And focus initial analysis on those
Hi Steve, thank you for your question. Pricing trends for major equipment are not something we specialize in unfortunately and in the current circumstances, the answer would, I believe, vary enormously depending on the nature, type, and location of the acquisition.
Greetings, thanks for the question. I look forward to the responses from other practitioners in this space too. In the meantime, I suggest you take a look at our contract standards clause library here: www.contractstandards.com/public/contracts/statement-of-work. While this provides a framework, the key is in the level of detail that you apply to the "Supplier Tasks and Responsibilities" section - the detail required is application-specific, so there are no hard and fast rules. I have used detailed project plans and, in some instances, references to operational collateral (handbooks, processes, and procedures, referenced but not included) to get to the level of detail necessary to define what is required. This works fine for transactional engagements but cannot cope with more complex requirements - where there is uncertainty in delivery or deliverable (or both!). Then, you'll need an agile approach to the SOW. Hope that helps.
Hi - thank you for raising this important point and sorry that you are missing out on active participation. In your user profile, you can actually make use of two email addresses - the primary one (that is used in the login process) and a secondary one, that is used if the primary one has issues. You can change these at any time, from your profile page: www.iaccm.com/members/, but clearly you will need to be able to log on to make the change. If you cannot log on for whatever reason, please contact the membership team (firstname.lastname@example.org) and we will happily make any changes for you, once we have verified your identity.
If you don't have a secondary email saved, perhaps now is the time to think about adding that. If you are currently associated with a Corporate membership and things have changed, you can always elect to leave the corporate membership and become an individual member. You can do that here: www.iaccm.com/members/. That way, you will continue to enjoy all the great benefits of IACCM membership.
I am in the situation where I am in between jobs, having finished in my last role at the end of March. The CoVID situation will most likely delay me getting new employment for some time. During this time I am focusing on catching up with IACCM events such as Webinars, AsktheExpert, etc, but find I am excluded from any Sponsors' webinar as I no longer have a work based email address.
Will this continue throughout the CoVID period? I feel it is a little short sighted of the Sponsors to exclude those not currently in employment from their webinars, it is exactly this time when I will have most opportunity to join and expand my knowledge and understanding of the marketplace.
Hi, Thank you for your response. Great to meet you - virtually that is.
I am very sorry to hear you are experiencing an issue registering for the IACCM sponsored webinars.
We continuously contact sponsors asking them to be sensitive to this issue. However, as the registrations are done on their websites, it is a challenge to get them to change their policies.
In any case, the webinar presentations and recordings are typically posted in the IACCM Member Library within 24 hours of all sponsored webinars, so they are available to you to review at your convenience.
Here is the link to the latest content on our resource library. www.iaccm.com/resources/contract-management-resources/
In the meantime, let us know if you need any additional information.
Jennifer Jarrard MEI SRMP
Director, Corporate Member Operations, IACCM Council and Networks
+61 (0)407 541 497 | email@example.com