Negotiation Preparation Checklist

Name of Project: SOLAR POWER PROJECT ON THE ROOFTOP

Project Leader / Members: Mia, Sally, Lin, Adeline, Cai Yina, Low Han Tiong
Date Executed: Oct/2022
Goods/Services: Invest the solar power on the rooftop of VN2 >1500 m2
Lead Negotiator: Mia

No. Items/Description
I Supplier Information
1 Supplier Name
2 Contact Person
3 Phone Number
4 What is the type of business? (sole proprietorship, partnership, or limited liability company)
5 What kind of products the company provide?
II Position Analysis
1 Do we have a 2nd source/alternative supplier?
2 Is the supplier P+F's incumbent?
3 What is the annual spend of P+F to supplier? (top 10 suppliers)

4 What are the strengths of the supplier? (experience/ high quality/ delivery/ price/ authorized)

5 Is this a one time or repeat contract? One time contract/ term contract

6 What is the potential annual spend/ potential spend of P+F to supplier?

7 Who is the one to make decision from the supplier?

8 What is her/him personal characteristics?

III Target Definition

1 What do we want from this negotiation?

 What is our/supplier BATNA (Best Alternative To a Negotiated Agreement) & ZOPA (Zone Of
2 Possible Agreement)?

IV Nego Strategy
1 What is the format for the negotiation? (email, phone, face-to-face)

Who should be on my negotiating team? Who should be our spokesperson? What specific
2
responsibilities should each team member have? (including global negotiator: Mhm, SGP...)

3 Where and when should the negotiation take place?

What is our relationship history with the supplier? How might our past relationship affect current
4
talks?

5 What are the supplier’s interests? How important might each issue be to them?

6 Who are their competitors for this deal? Do we have the Pros & Cons compare?

Based on our BATNA? What option would we turn to (it could be "buy a different company" ,
7 "extend the delivery/payment terms/warranty", "free of charge for training/spare parts"... ) if we
are not satisfied with the deal we negotiate or if we reach an impasse?

* Comment/Conclusion:
Cost reduction: -8,51%
Payment terms: 30days

- Sign DNA
- Bank guarantee
- Licence about the fire protection
- Insurance for rooftop
- Risk management:
+ If lack of power
+ If Redundant the power
+ Need the storage of power
+How to safety in usage.
 Information indicate
VSS

Yes
Yes
120,000 $ for electronic parts
Good experience and reputation for providing high quality product, cost
competitive
Recommended by LutherLLP Singapore

One time contract for installation and term contract for maintenance

Yearly renewal "maintenance services + repair the system"

Ms. Ha - Deputy General Director

Principle, good collaborative, well supported

1. Background
- The cost is high and not competitive if comparing with vendor TSS ~
>15%.
- Good relationship with EVN, government organization and commit for
solar power permits.
- Near location with P+F ~ 5 km and can support under 2 hours.
2. Procurement target:
- Cost reduction: 8-12%
- Extend payment terms: 15 days after invoice
Total cost: 370k$

Phone & e-mail and face to face meeting

SEA team

- Location: Webex meeting and P+F office

- Time line for negotiation: Need to close the deal before 30thOct
Good collaboration, win-win negotiation (Contract for legal retainer services,
reviewed Terms & Conditions for VN)
- Expand a business with PF due to there are many contracts need to review
and maintenance contract for up-coming years
- Long-term relationship with PF

The competitor is
- Pros: incumbent supplier, supply permit
- Cons: cost competitive, the warranty time is <2 years

Extend payment term 15days to 45days

n indicate
TSS

Yes
Yes
Not yet contract before

Had provided the good and services to some FDIs

project as Jabil, Bosch.

One time contract for installation and term contract for

maintenance
Yearly renewal "maintenance services + repair the
system"
Mr. Hai - Managing Partner

Flexible, good communication, detail, hard to deal

1. Background
- The cost is more competitive .
- Have only the rental services.
Total cost: 320k$