It is important to have a leader or point person to lead the negotiations. There can only be one leader, so the other side does not "divide and conquer" and so that one individual takes responsibility and accountability for the process and results. The point person leads the preparation and the negotiations.
Team members are necessary for conferencing before and during negotiations, taking notes, providing specialized advice (e.g., financial calculations during negotiations) and having knowledge of the documents as the negotiations progress.
The advantages of having a team negotiate a public private partnership are:
• more expertise
• more minds to notice opportunities
• to make notes to be relied on for future meetings
• better preparation
• collegiality
The negotiating team must prepare by establishing objectives, strategically planning, ascertaining the facts and conducting due diligence regarding the private partner.
It is important to establish objectives as opposed to positions. This is the key to the success of the negotiations. The objectives must be based on the strong commitment of the team, be the result of significant preparation, have the support of the local government elected body and be realistic in light of the powers of the local government.
Strategic planning deals with long-range objectives and is more important than tactics. Generally, the best-prepared team is the more successful team in the negotiations.
It is important to find out about the private party that is partnering with the local government. Information may be obtained from discussions with junior members of other negotiating teams or other representatives of the private partner, investor newsletters, financial statements, banks, contractors with the other party, other local governments and in some cases, the proceedings of tribunals (e.g., Utilities Commission).
If the private party contacts the local government during the negotiations, it is important to listen but provide no information. Identify the strengths and weaknesses of each side in the negotiations and try to ascertain what is the least-cost alternative, least-worth alternative and bottom line of the private partner.
A local government has more power during the negotiations if it has more time (i.e., it can afford to wait longer than the private partner). It is important to plan tactics to achieve local government objectives and strategies. All strategies and tactics should be vetted with the local government elected body so there are no surprises.