• What are the Procuring Authority's objectives for the negotiation?
• Be clear about what your understanding of the underlying cause of the disagreement or dispute is.
• Consider the Project Company's understanding of the underlying disagreement or dispute.
• What are the strengths and weaknesses of the different sides of the disagreement or dispute?
• A key objective for the Procuring Authority should be to reach a common understanding on the underlying cause of the problem leading to the disagreement or dispute, including any associated legal and technical issues.
• What are the skills needed to assess the underlying cause and carry out the negotiation (legal, financial, technical, insurance, tax, other)?
• The Procuring Authority may need to appoint external advisors.
• Consider the effect any decision may have on all interested parties.
• Assess who should be involved in the negotiation. It may be beneficial for the construction or operations contractor to be present.
• Depending on the significance of the dispute and settlement options, the Procuring Authority may need to seek approval from another relevant government department.
• Are negotiators on all sides sufficiently empowered to resolve the matter?
• What are the strengths and weaknesses of the participants in the negotiation?
• Once technical and legal aspects have been clarified, the commercial aspects can be properly evaluated. Commercial aspects should be considered on both short-term and long-term basis.
• Evaluate the Procuring Authority's 'worst case scenario' option, preferred option and compromise option.
• Where limited information is available (or the cost implications of fully understanding the underlying issue are great) the parties should attempt to reach a settlement based on the information available.