Engineering a Negotiating Strategy: A Case Study

Negotiation of an energy purchase and sales agreement between a host industrial complex and the owner of a co-located combined heat and power (CHP) facility is a complex process between two inter-dependent parties forming a close long-term relationship. This case study examines the components of the agreement that require engineering input and the process of negotiation that is often led by an engineer. Outside reading is included with recommended course work and references for further study and professional development. A project management approach to the preparation phase of negotiating is presented. The study examines example calculations needed to establish components and priorities within the negotiating strategy for the industrial complex and the CHP owner from a real-world example. Students have a chance to develop hypothetical negotiating points for either side with proposed opening positions. The outcome of the case study is summarized for reference.