It’s time for the next installment of Strategic Development Group’s countdown. Our SDG “Top Ten” list covers the most frequent mistakes companies make in the site selection process. Check out the other installments of our countdown!
Mistake #1: Failure to Document Commitments
Getting it in writing is a ground rule of any negotiation. As business people, we know this, but this step is often missed or forgotten in a friendly site discussion. During a site selection project, hundreds of commitments are made verbally in phone calls and site visits. Interested parties discuss everything from utility capacities to qualification thresholds for incentives. It’s a firehose of information and handshakes, and details can be overlooked if not captured in written form.
If commitments are not fully recorded, they may not be included in the Memorandums of Understanding (MOUs) and agreements.
For example, if a commitment for gas pressure or volume is not recorded in agreements, at some future point there could be significant issues related to the delivery of gas committed. This threatens the company’s ability to manufacture products as intended.
Other challenges can present themselves when one party will make an offer of which they do not have the authority to promise. Writing down details and circulating them to appropriate stakeholders, prevents rework or negotiations from falling apart.
Solution: When in doubt, write it out. Recap all conversations. Organize the agreements on paper and ensure all parties are on the same page prior to MOUs. This ensures a smooth and complete contract.
Our experienced team is singularly focused on finding your project the best site for long-term success. We take a holistic approach and have the expertise to negotiate and navigate the intricacies of your unique company and needs.
Founded in 1999, SDG is a highly specialized site selection consulting firm. We focus on identifying optimum locations promptly, maximizing the value of incentives, and minimizing risk for corporations from across the globe. SDG has managed projects with capital investment from $15 million to over $1 billion for companies in a wide range of industries including automotive, chemical, steel, and life science.