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Negotiation plan of AIG Construction Company
1. Background information
We are the general contractor of Haorun Group. According to Haorun Group’s requirements, we have designed an optimal plan for them. Because some specific details have not reached an agreement, five representatives of our company are invited to *** for negotiation
2.Content
(1)Theme: To persuade Haorun Group accept our optimal plan as much as possible.
(2)Goals
①Requirement of space utilization:
a. Green areas: ≥30%
b. Parking lots: one storey underground parking lot, about 200 parking spaces and a surface car parking, about 35 parking spaces.
c. Building lot area of office building: about 11000 ㎡, 70% for working areas, 30% for stairs and lifts
②Cost
a. Ideal target: RMB 3500.00/㎡(20230㎡*3500=70,000,000)
b. Realistic target: RMB 3000.00/㎡(20230㎡*3000=60,000,000)
c. Minimum target: RMB 2500.00/㎡(20230㎡*2500=50,000,000)
③Supervision
a. Selection of supervisors
b. Content of site supervision
c. Project schedule
④Acceptance period
a. The acceptance procedure
b. The information submitted when hand over the building:
c. The requirement of the acceptance
d. The inspection of quality and responsibility for the quality problem : (the detailed information is enclose in document (16)
3. Agenda
The first day
07:30 go to the airport
09:00 arrive at the airport
09:30—11:00 visit our company
11:00—12:30 have lunch with Haorun Group’s representative
15:00—16:00 have a preliminary negotiation in afternoon tea time
The second day
09:00—11:00 official negotiations
15:00-18:00 discussions about contract provisions
The third day
9:00—11:00 sign the contract and take a photo
11:00—12:30 go to the banquet to celebrate the cooperation
4. Negotiation venue
We negotiate at the meeting room of Haorun Group.
5. Negotiation methods and tactics
(1) Negotiation method:
We will determine our different levels of goals and prioritize them. Then figure out possible conflicts and think of the solutions. Discuss the subjects which are beneficial to us, and avoid those bad for us.
(2) Negotiation strategies:
① Highlight our strengths. After knowing position and views of the other party, we should list both our and the other party’s strengths and weaknesses. Develop our strengths and avoid our weaknesses.
②Get to know our opponents, before the negotiation, we should know about the personality of our opponents and suspect the possible tactics they may adopt. Then we can use different kinds of methods to negotiate.
③ Pause sometimes, if there is any drawbacks for us, we can pause and find out the helpful solution.
④Contending. Persuade our negotiating party to concede to our outcome if we are bargaining in one-off negotiations or over major 'wins'.
⑤Yielding. Concede a point that is not vital to us but is important to the other party; valuable in on-going negotiations.
⑥Collaboration- Learning and understanding the needs of all parties involved to craft a solution. Information is shared is shared between parties with an emphasis on disclosing and meeting needs with solutions that are jointly developed.
6. Predictions about risk and effect of the negotiation
(1) Risk of the negotiation
①The other party may refuse to make any concession on prices; they may try their best to cut down the price. So we have to do our best to insist on it and show our reasonable reasons.
②During the negotiation, the opponents may use many tactics to force us to make concessions. So we have to calm down and adapt ourselves to the changing circumstances.
(2) Predicted effect of the negotiation: to create a win-win situation and establish a repeat cooperation.
7. Budget of the negotiation
A. Transportation fare: ¥1000
B. Communication expense: ¥200
Total: ¥1200
8. Division of work
Main negotiator: Stephanie,the general manager of our negotiation team, who is responsible for the project budget.
Assistant : Candy, who is responsible for payment terms and to take the minutes
Designer : Ashley , who is in charge of space utilization.
Project Manager : Daisy, who is in charge of supervision of the project.
Quality Supervisor : Wing, who is in charge of
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