TRADING ON THE BABEL TOWER

TRADING ON THE BABEL TOWER

I would like to share in this article, some insights and  personal perceptions about the  negotiations, regarding to some companies and peoples from abroad where I took a part in  deals and for the sake of good order, henceforth shall be called as Contractors.

Therefore,  this post, by no means intend to be a business manual, or guide book even because should be untenable to describe so vast and complex subject in a few words and lines. I have not such a claim.

Working in the maritime industry for more than 27 years, dealing with a multicultural people, commercial managers, head of contract and others remarkable responsible persons, feel myself fortunate to have learned with my colleagues, some knowledge and tips that end up to be embeded in the way of doing business.

Each country and people holds specific details and behaviour to do business and achieving the best results in contract dealing, no matter what be the type, short, médium or long term contract. Its imperative to know beforehand the culture, applicable law, person in charge to deal the contract and last but non least, rely on your personal instincts

For instance, the northern of Europe, while negotiated with a contractor some short terms contracts, my perception at that time, the value charged should be an average of price practiced in the international Market. I reminded that Contractors does not used to ask for a rebate in the  amount. If higher or far below price  to the Market, your company will be out. Mean that the applicant company is not trustworth

In  central Europe, some companies ask for or may accept a discount in the invoice or contract, once that be reasonable the percentual negotiated and according to the values practiced in this kind of business. But its not usual, some contracts, mainly the médium and long term contract, a draft must be issued prior and terms be agreed, before close the deal.

the other hand,  I also had some experiences with companies in the Balkan country and Middle east. They are good to do business and discuss the contract amount. Nonetheless, the contractors companies are very meticulous and requiry the utmost of the contracted company, which imply that the contracted must hold the necessary and strong expertise to face a fast pace and accomplish the jobs accordingly.

Regarding to the Asian continent, contractors sometimes like to carefully make a previous assessment of the contracted firm, their custom, culture and company´s background. Also, the Contractors like to appoint a deputy manager to entertain and assess the contracted company´s manager, in order to vet him and take the "datas" to their Commercial diretor. After this you will meet with him directly to discuss the the contract and terms.

In summary,  whatever be the template contract, if simple bespoke contract  or standardized and ruled by the FIDIC book, EPC/TurnKey, clauses Knock for Knock(widely used in oil and gas industry) and others terms  thereon, The contract managers/head must be in mind the uniqueness of each contract, country culture and  others relevant informations and also, who will be designated to run the deal.

Set up an international mindset and thinking globaly are the key features to deal in the complex babel tower of worldwide business and contract. Althought we have effective technological tools to enhance and give more accuracy to the executives decision as, big data, AI and the emerging of skilled Start ups companys tailoring and customize services to clients.

But, one question maybe can  be arisen by the readers, whats the best country to do business? My response is: all the countries. We live in a globaly and integrated world persons and companies are connected all the time, selling and exchanging, products and services, TRADING  “urbe et orbi”. This is a great advantage of the mankind, namely, Interaction, i.e. reciprocity in market access, not only virtual, but face to face. Think this is realy a social funtion of contracts and business.

foto courtesy: https://www.google.com.br/search?q=foto+torre+de+babel&rlz=1C2CHZL_pt-BRBR705BR705&dcr=0&tbm=isch&source=iu&ictx=1&fir=l9aCfQFI_wPq4M%253A%252CadGQXXOZo6sovM%252C_&usg=__PUAzVDQahA4iQ_ZrquNB0PKoy0A%3D&sa=X&ved=0ahUKEwjA9PbOtqjZAhVJIZAKHZr0CTYQ9QEIODAH#imgdii=3ktfjFAGCQrZyM:&imgrc=JS8PkkOJelMSZM:

Author details:

Paulo Oliveira S.Silvano

lawyer - Consultant

Extension in maritime law (shipping, oil & gas, loss and averages, etc.)

"Expertise" in ports - having worked for 10 years in VALE ports.

Maritime repairs and Agency.

email: paulosilvano.juridico@gmail.com

Linkedin: BR.linkedin.com/in/paulosilvano

http://paulosilvano.blogspot.com.br