Solution

• disagreements in negotiation plan successfully

Table of Contents

1.0 Introduction. 4

1.1 Abu Dhabi Sustainable Water Solutions (ADSWS) Backgrounds. 4

1.2 Spend category and organisation positioning. 5

2.0 Development of a Commercial Negotiation Plan. 6

2.1 Preparing and Planning. 6

2.1.1 Roles of Stakeholders in Negotiation. 7

2.1.2 Mendelow Matrix (Different Stakeholders Power/Interest Analysis) 8

2.1.3 Analysis of Strengths and Weaknessess of the Negotiation Plan. 10

2.1.4 External Analysis of Negotiation Environment 11

2.1.5 Analysis of Competitive Forces in Negotiation Process. 12

2.1.6 BATNA in the Commercial Negotiation Plan. 14

2.1.7 Negotiation Approaches Selected. 15

2.2 Opening. 17

2.3 Testing. 19

2.4 Proposing. 19

2.5 Bargaining. 22

2.6 Agreement and Closing Stage. 22

3.0 Development of Contracts Management. 22

4.0 Conclusions and Recommendations. 23

4.1 Conclusions. 23

4.2 Recommendations. 24

References. 26

Bibliography. 29

Figure 1: Summary of ADSWS Operations. 5

Figure 2:Stages of Negotiation Cycle. 7

Figure 3:RACI Matrix Analysis. 8

Figure 4:Example of Stakeholders Categories. 9

Figure 5:Example of Stakeholders Categories. 10

Figure 6:Porters 5 Forces Model 14

Figure 7:Achieving BATNA and ZOPA Analysis process. 16

Figure 8:Strategies of Negotiation. 17

Figure 9:5 Rights of Procurement 18

Figure 10:4R’s Model 21

Figure 11:Components of 3P’s Model 22

Table 1:Negotiation Plan SWOT Analysis. 11

Table 2:STEEPLED Analysis external analysis. 12

Table 3:Costs Management in Negotiation Strategy. 19

1.0 Introduction

1.1 Abu Dhabi Sustainable Water Solutions (ADSWS) Backgrounds

Abu Dhabi Sustainable Water Solutions (ADSWS) is a public organisation developed in 2005 and headquartered in Abu Dhabi (SWS.ae, 2024). The organisation is a specialist in offering sustainable water solutions for transformation of their natural resources and contributing to United Arab Emirates (UAE) sustainable economic development and overall Quality of Life.  Since its establishment, the organisation has been going through immense growth, enhancing management of core assets and delivering high-end services. Their customer groups are residential, commercial and industrial. A summary of their statistics is as illustrated in the following;

Figure 1: Summary of ADSWS Operations

Source: Summarised from SWS.ae (2024a)

In all the identified operational features, ADSWS is mandated with a responsibility of collection and disposal of wastewater from the different customers earlier identified in Abu Dhabi. This is with safely disposing the generated solids and liquid byproducts. In line with this background, this assessment intend to evaluate sourcing approaches used in ADSWS construction of sewer networks as a service category. For this spend area, a supplier appraisal checklist has similarly been generated at the end of this report.

1.2 Spend category and organisation positioning

Today, ADSWS has an overall 8,943km length of sewer with their current focus including expansion of the sewer line with upto 992km length. The organisation intend to expand their operations from Abu Dhabi only to operate in Dubai and Al Ain Emirates. According to CIPS (2024) in the identified spend category, identifying the most appropriate sourcing approach would imply a direct control of their entire supply chain process and PS&M operations. In this report, this has been achieved by prioritising on evaluation of their varying needs, demand/supply in entire value chain. Also, Kraljic analysis tool and Mendelow matrix analysis have been used in evaluating the different sourcing strategies effectiveness.
1.3 Purpose of this Report

In this negotiation plan, the focus is guided by assumption that negotiation is important for organisations business implementation (Mwagike & Changalima, 2022). Through negotiations particularly in contracts, organisations are in a position of gaining in terms of costs savings and dominate their sector of operations. In PS&M, negotiations are used to identify interests of different stakeholders, manage costs, evaluate terms and conditions (quality) and eventual gain in terms of value for money. Through the application of different communication strategies, negotiations improves collaboration of parties involved in the process implementation (Wankmüller & Reiner, 2020).

In this negotiation plan, it will play the role of a background of commercial negotiation which is applicable amongst the parties involved in the construction of sewer networks spend area in ADSWS. In CIPS Module Notes, the procurement cycle is identified to entail a series of phases which are guided by the Key Performance Indicators (KPIs) and Service Level Agreements (SLAs) for their success as illustrated in the following;

Figure 2:Stages of Negotiation Cycle

Source CIPS Notes

Owing to the sensitivity of sourcing construction of sewer networks spend category, an effective negotiation plan is important. This is owing to the need for putting in place advanced infrastructure and cutting-edge technology technologies, treatment and re-use in eco-friendly way (Heckman,  2020).

2.0 Development of a Commercial Negotiation Plan

2.1 Preparing and Planning

The purpose of the preparation and planning is ensuring that the stakeholders understand their role in the negotiation and the process anchored on all factors (internal and external). as part of planning, Gates (2022) identify need to establish the Best Alternative to a Negotiated Agreement (BATNA) to guide planning. With construction of sewer networks category being broad, ADSWS lacks an elaborate understanding of BATNA and also the Zone of Possible Agreement (ZOPA). In the implementation of negotiation plan, there is a need for identifying entire parties to account for and take responsibility for negotiation strategy for understanding BATNA and ZOPA (CIPS Module Notes).

2.1.1 Roles of Stakeholders in Negotiation

For the purpose of assigning roles to different stakeholders in the negotiation, RACI Model (Takki, 2022) analysis can be carried out. The components of this model is as illustrated in the following;

Figure 3:RACI Matrix Analysis

Source: Summarised from CIPS Module Notes

Responsible- The negotiation is a multi-faceted undertaking with various players being involved in the process implementation. In particular, the PS&M, accounts and human resources would all be engaged actively in sourcing for the sewer networks. These are important stakeholders who need to be engaged actively.

Accountability- The outcome of negotiation by different stakeholders would be an accountability of PS&M department in the organisation. This is since they would lead the negotiation process guaranteeing that they follow ISO 9004 assurance requirements and also the Local UAE sanitisation and sustainability green energy Bill 2023(4)3 legislation (Shabbir et al., 2020). Tahe rationale of this is to come up with most qualified supplier of the sewer networks construction spend area with a certification from organisation to management teams.

Consult- In each phase of construction of sewer networks, experts are involved who are as a result of negotiations improvement. In technology systems they consult system developers, legal teams and technology experts all intended to improve negotiation outcomes. Also, the Abu Dhabi community representatives are consulted with an intention of setting the quality demands of the sewer networks due for construction.

Informed– The different stakeholders involved in the negotiation process need to be aware and possessing sufficient information regarding the process undertaken. According to Szoke-Burke and Cordes (2020), in subsequent analysis, this category will be identified as requiring continuous monitoring. The quality assurers of sewer networks, Abu Dhabi local council planning department need to be aware of the scope of this negotiation. The rationale for this is achieving overall standards of the networks in negotiation.

2.1.2 Mendelow Matrix (Different Stakeholders Power/Interest Analysis)

The outcome of the RACI model analysis on different functions of the stakeholders inform necessity for stakeholders analysis in regard to power and interest. Adopting the definition of Duffner-Korbee et al. (2024), a stakeholder is a person who directly/indirectly have an influence on a particular project implementation to achieve intended goals. By evaluating power and interest, it becomes possible for negotiation plan to strategically, operationally and tactically succeed. The analysis summary is illustrated in the following;

Figure 4:Example of Stakeholders Categories

Source: Info (2024)

In the negotiation plan for the construction of sewer networks, the different stakeholders in ADSWS would be actively engaged for the success of the process…..

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