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Reasons for a negotiation
As we now aware that negotiation is a process, we will now learn the reasons for which the negotiation plays a crucial role.
Detailed negotiations may not be warranted for standard products or services of low value and those which are widely available or have established standards. For such requirements, the competitive bidding process is invariably adequate. When issues other than just price and delivery time become important in a project, receiving and reviewing competitive bids will need to be followed up with competitive negotiations.
The other issues may pertain to some of the following:
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