April 24, 2002
The lighter side of Chinese contract negotiations
Heard around the coffee houses and restaurants all around Asia lately, a joke that just may well have a slight ring of truth to it... A Chinese company contractor sent out for proposals on a certain tender for the Beijing Olympics to consulting firms worldwide. The first bid to be heard was from Hong Kong - three million dollars. "How come it's so much?", asked the tender. "Well, it's 1 million for the service, 1 million for expenses, and 1 million for profit", ventured the bidder. "That's ridiculous", said the tender - and sent the bidder on his way. The next bid was from an American company, bidding at 6 million. "How come it's so much?", asked the tender again, "...it's twice as much as a Hong Kong bid I had yesterday." "Well, that's easy.." said the American. "Seeing we are from America, the service is twice as good, the expenses are twice as much, as so should be our profit..." "Too much!" snorted the company. It took until the third bid for the tender to award the contract, and that was to a Chinese company that bid $9 Million. As usual, the company asked why it was so much... "Well, that's 3 million for you, 3 million for me, and 3 million for the Hong Kong company to do the work..." Chao Phraya River Rat in Strategy and Business Management on April 24, 2002 09:54 PM |
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