Key advantages

•  Can avoid time and cost implications of dispute resolution mechanism escalations

•  Can resolve disputes faster, leading to a smaller impact on the relationship between the parties

•  The parties themselves have the discretion to agree on the appropriate resolution

Key disadvantages

•  If a Procuring Authority is not adequately prepared, negotiation can result in an outcome that reduces value for money

•  Can waste time when the parties are unlikely to agree to a mutually acceptable outcome because their views are too far apart

•  Has the potential to detriment an otherwise positive relationship where there is no progress being made