Negotiation

Negotiation

(Most important short notes question for General Expenditure paper)

·         What is the meaning of Negotiation in general ?  Discussion aimed at reaching an agreement is called Negotiation.

·         In Indian Railways Works tenders, Selection of contractors by Negotiation is an exception rather than rule. 

·         Normally, L-1 who is lowest, valid, eligible and technically acceptable tenderer would have been awarded the Contract, if the rates were not unreasonably high.

·         If rates were unreasonable high, decision whether to invite fresh tender or to negotiate with L-1 should be taken by the Competent authority on the recommendations of the Tender committee.

·         Negotiations with Tenderers other than L-1 are not permitted.

·         Further the rates originally quoted by L-1 shall remain open  for acceptance in the event of failure of negotiation

  

·         While conducting negotiations with tenderers and obtaining revised rates and recommending the same for acceptance, the tender committee should ensure that the fundamental requirements of safeguarding Railway’s financial interest have been fully observed.

·         The above instructions may not be applied rigidly to tenders for specialized works or equipments where tenderers may quote according to their own specifications and designs for various reasons such as improvement in technology etc. and it may become necessary to discuss technical and other details with them to select the most suitable offer.

SUMMARY - NEGOTIATION

1.    Means Discussion for securing better rates.

2.    Exceptionally used.

3.    Used when rates are reasonably high and decided not to go for re tender.

4.    Negotiation with L-1 tenderer only.

5.    Decided by Competent Authority on the recommendation of Tender Committee.

6.    Original offer of L-1 Tenderer remains open for acceptance, in case Negotiations are failed.

7.    The above instructions normally applied to works of specialized nature or equipments.

8.    Overall, ensuring the safeguard of Railways financial interest.

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