Financial Aspects

Many times, the finest method to determine the best offer to the Project is to request a bid from qualified sources. In this case, GM&CONSULTING will include in each of the issued bids, the necessary financial aspects to allow the Contractor to make its best choice on the bidder evaluation process. A few examples to be included:

• Total acquisition and life cycle costs are those to be considered (not only the direct costs) .
• include the risks of each bidder (proven results, after sale support and services, technology and other criteria that might differentiate one supplier from another).
• In case the bid involves a significant amount of money or requires an ongoing effort, negotiations may be used in conjunction with a bid.

Negotiation

There are times when the bid process is difficult to be the one in use. When this occurs, prices and conditions must be negotiated. Negotiation will be used when:

• The number of suppliers available is too limited to create competition through a bid.
• New technologies or processes are required for which a selling price has yet to be determined.
• The supplier is required to make a substantial financial investment or other resources.
• There is not enough time available to seek competitive bids.

Participating Parties

GMNC offers its services to become a leading actor on the financial aspects of the negotiations and the contracts preparations between the Project Management and the additional project participants. The eventual additional project participants

• Subcontractors.
• Suppliers of commodities.
• Suppliers of equipment.
• Providers of different services.
• Individual employees (expatriates and local).

Guidelines

• For each case, GMNC will define and follow the best suited strategy and tactics for the negotiations, and try to anticipate the strategy of the supplier, based on research and analysis of the counterpart and its requirements.
• GMNC will assure the supplier negotiating representative has the authority to make offers and commit the supplier.
• GMNC will always follow the principle that a successful negotiation results in a win-win situation for both involved parties.