What is Post Tender Negotiation (PTN)? Definition
Post Tender Negotiation (PTN) is the process of negotiating with suppliers after the completion of a tender process. It is a way to get the best possible terms and conditions for your company, and can be used for both commercial and non-commercial contracts. PTN can be used to negotiate on price, delivery terms, payment terms, warranty terms, and more. It is an important tool for procurement professionals, and can help you save money and get better terms for your company.
What is Post Tender Negotiation?
PTN is the process of negotiating with a potential supplier after the receipt of a tender. The aim of PTN is to secure the best possible price and terms for the company.
The first step in PTN is to identify the key areas where there is scope for negotiation. This can be done by reviewing the tender documents and evaluating the costs associated with each item. Once the key areas have been identified, the next step is to contact the potential supplier and request a meeting to discuss the matter further.
At the meeting, both parties should present their respective positions and try to reach an agreement on price and terms. It is important to remember that PTN should not be used as a way to bully suppliers into accepting lower prices; rather, it should be seen as an opportunity to find a mutually beneficial solution.
If an agreement cannot be reached, then the company may choose to proceed with another supplier or re-tender the contract.
What are the benefits of PTN?
When it comes to Post Tender Negotiation, there are a few key benefits that you should be aware of. First and foremost, PTN can help you save money on your project. By engaging in negotiations with the winning bidder, you may be able to reduce the overall cost of the project. Additionally, PTN can help you improve the quality of your project. By ensuring that all parties are satisfied with the outcome of the project, you can help improve its chances of success. Finally, PTN can help you build better relationships with your contractors. By engaging in open communication and working towards a mutually beneficial outcome, you can create a more collaborative environment that will benefit everyone involved.
What are the key stages of PTN?
1. Initial Assessment
The first stage of PTN is the initial assessment, during which both parties involved in the negotiation process assess the situation and decide whether or not to proceed with PTN. This stage usually involves a review of the contract documents, as well as a discussion of the objectives of both parties.
2. Preparation
The second stage of PTN is preparation, during which both parties involved in the negotiation process prepare for the actual negotiation itself. This stage usually involves developing a strategy for the negotiation, as well as identifying any potential areas of disagreement.
3. Negotiation
The third and final stage of PTN is the negotiation itself, during which both parties attempt to reach an agreement on the terms of the contract. This stage can often be lengthy and complex, depending on the issues involved.
How can you use PTN to your advantage?
There are many ways that you can use Post Tender Negotiation (PTN) to your advantage. By understanding the process and knowing what to expect, you can be better prepared to negotiate a fair price for your project.
Here are a few tips on how you can use PTN to your advantage:
1. Know the process. PTN is a formalized process that is often used in construction projects. Familiarize yourself with the steps involved so that you know what to expect.
2. Do your homework. Before entering into negotiations, research similar projects in your area to get an idea of what a fair price would be for your project. This will give you a starting point for negotiations.
3. Be prepared to compromise. PTN is all about coming to an agreement that is acceptable to both parties. Be prepared to make some concessions in order to reach a mutually beneficial agreement.
Conclusion
Post tender negotiation (PTN) is a process that can be used after the submission of a tender to try and improve the terms of the contract. PTN can be used to negotiate a better price, delivery schedule, or other terms of the contract. While it may not always be successful, PTN is worth considering if you want to improve the terms of your contract.