CHAPTER ONE

INTRODUCTION

By no means can all purchases and suppliers matter be dealt with by correspondence and telephone. It is therefore a necessity that face to face •counters sometimes take place to resolve problems and differences which ID be overcome by negotiation.

This research work looks at negotiation as an important tool in ensuring effective buying in a construction company.

It is important to recognize that the primary task of purchasing manager in fulfilling his role of maintaining suppliers is through effective negotiation. 

The Purchase manager should be a specialist in satisfying the needs of the company by seeking suitable sources of supply and negotiating to secure the best terms and service possible negotiation is necessary whenever it is required to reconcile two or more different opinions in order that action "may be initiated continued in the mutually agreed condition.

It is very important that all buying and selling transactions leave both parties satisfied and hence negotiation is not forcing and unwilling acceptance.

Though negotiation is complex and costly, it is used primarily for a naira value purchase. For high Naira value purchases, where five criteria that dictate competitive bidding prevail. Though competitive bidding is only used to narrow down the number of suppliers which implies dealing with a few successful bidders.