ABSTRACT
This chapter discusses a case study of Moore Power PLC, an international energy construction company which is used for negotiation training. The simulation is about trading between cost imperatives and the contractual conditions that are of concern to both teams. There is also some flexibility in the liquidation damages and warranties, and work carried out by Moore Power's internal staff has identified an extra profit mark-up in the bid, although they do not know that it covers a risk element for desert conditions at Biggar Engines. Moore Power considers that the items are worth exploring given the reputation of Biggar Engines. In some cases a non-compliant bid is rejected on this ground alone, but in 'Power Plant' this would be unlikely to happen automatically as the non-compliant items are fairly common in contract tenders. With deliveries spread each power plant is tested for acceptance on arrival at the site. The negotiators use conditional language in their proposals and bargains.
