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
