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The Characters of COB

G Anthony Absolute, Sales Director Π


G Basil Bartram, Project Director Designate Œ
G Charles Chandos, Finance/ Commercial Director Œ
 
G David Dunkley, Operations Director Π 
G ÿrnest ÿlder, Production Director Chemicals Œ  
G Frank Fearless, Managing Director Π
Sequence of ÿvents of the Negotiation

G Both parties met. The Government of San Feriano introduced


the diplomats.
G The Chief of Police sets the rules of the meeting
G ÿvery COB executive frisked by the military junta
G All papers to first go through the Chief of Police
G COB executives: not allowed to ask a question directly from the Prime
Minister
G The Government came as a stern and displayed strong traits
of the Soviet Style of communication
G In the second round of negotiation, both parties realised
importance for project
COB͛s initial proposal - Highlights

The contract was divided into    


G ^    
„ ÿstablish ͚The Water
Hyacinth Scheme͛ to generate renewable sources
of energy in San Feriano.
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Copy of the Contract ʹ (Please click in slide show view)
New Payment Schedule (Post Negotiation)
Cumulative Amount
Payment Details Completion % % of Amount millions(£)

25% 25% 25%

50% 20% 45%

75% 20% 65%

100% 25% 90%

  
  10% 100%

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Post Negotiation: Terms and Conditions

G R  


Î Delivery on time M Oct-82
Î Cost of Project agreed to 43 million Pounds + 5 million Pounds of Sub
Contractor also to be paid to COB
G     
Î  esponsibility of SF CoCo. taken over by COB
Î Contingency - part of project cost and to be paid as and when
occurred.
Î Shared supervision costs
Î Documents to be submitted with the final contract:
Î ÿnvironment standard certificates, Background info
Î Past ÿxperience and Post Installation ÿngineering staff to be retained
for further period of 3 years.
Main Challenges

G Pre-empting the Government͛s attitude and concerns


G Maintain composure despite the aggression displayed by the
Government
G Trying to arrive at a balanced trade off to arrive at a win-win
for both parties
G Adjusting the contract as per their terms yet maintaining our
stance
Approaches to Challenges

G COB was defensive initially to gauge their concerns


G Identify their priorities/ objectives
G Identify the concerns where a compromise was not possible
G Constant discussion amongst team members to maintain
common ground
G Weighed the compromises against the gains to COB
G  e-presented the case with COB͛s defense and revised terms
of agreement
G Maintained composure throughout the negotiation process
and ensured adherence to protocol
G ÿnsured buy-in from both parties
Our Strategy : Win-Win Technique

G Building Trust
Î First level of negotiation: Obtain trust from the opposition
Î Transparency in dealings
G Gaining Commitment
Î Clearly defined roles and responsibilities
Î Listen attentively
G Managing opposition
Î  ecognize and acknowledge the hierarchy
Î Attitude was defensive towards aggressive opponents
Î Second level negotiation:  econcile differences yet
maintain our stance
Final Thoughts

G   Most satisfactory
G The project was crucial to both parties
G In order to reach a consensus, it was important for both teams
to compromise
G Members of both teams stuck to their own specific roles
G The COB contractors transparent in their approach in the
project and respected emotions behind the urgency from the
government
G Both parties focused on building long term relationships
G The Government acknowledged the genuine interest displayed
in the project by COB
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