Two of the reasons to engage in negotiation instead of bidding are when many variable factors bear not only on price but also on quality and service and when the business risks and costs cannot be predetermined.

Question

Quizplus · Accepted Answer

Negotiation allows for discussion of multiple factors beyond price, such as quality and service, and can help address business risks and costs that are difficult to determine in advance. Bidding, on the other hand, is generally focused solely on price and may not take into account these other important factors.

Two of the Reasons to Engage in Negotiation Instead of Bidding