Negotiations clarify the structure and requirements of the purchases so that mutual agreement can be reached prior to signing the contract. Final contract language reflects all agreements reached. Subjects covered should include responsibilities and authorities, authority to make changes, applicable terms and governing law, technical and business management approaches, proprietary rights, contract financing, technical solution, overall schedule, payments, and price. Contract negotiations conclude with a document that can be executed by both buyer and seller that constitutes the contract.
For complex procurement items, contract negotiation can be an independent process with inputs (e.g., issues or an open items listing) and outputs (e.g., documented decisions) of its own. For simple procurement items, the terms and conditions of the contract can be prefixed and non-negotiable, and only need to be accepted by the seller.
The project manager may not be the lead negotiator on procurements. The project manager and other members of the project management team may be present during negotiations to provide assistance, and if needed to add clarifications of the project's technical, quality, and management requirements.
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What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.