Negotiation

Negotiation

Description
Status
Not started
Due Date
Priority
Project
Task Type
Created by
A. Rahim
Date
Related Tasks
Related back to Tasks

Smart Water Metering Pricing and Contract Overview

Table 1: Pricing Details for Smart Meters

Feature
Initial Cost per Meter per Month (OMR)
Post-8 Years Cost (OMR)
Notes
Standard Meter
3.0
To be negotiated
Lower cost due to cost recovery over 8 years
Meter with Remote Disconnect
3.5 (discounted from 4.5)
To be negotiated
Cost includes remote disconnection feature

Note: The initial costs include installation, maintenance, and operation. After 8 years, costs will primarily cover software management and possibly additional services.

Table 2: Maintenance and Warranty Details

Period
Maintenance Included
Warranty
Notes
During 8-Year Contract
Yes
Duration of contract
Included in monthly fee
Post-8-Year Contract
To be negotiated
To be negotiated
Likely additional costs for extended maintenance

Strategic Considerations and Recommendations

  1. Post-8-Year Costs: Aim to lock in favorable terms for software and maintenance costs post-contract to avoid significant price hikes.
  2. Extended Warranty: Negotiate for extended warranty periods to cover major components, especially the remote disconnection mechanism.
  3. Flexible Contract Terms: Include clauses that allow for renegotiation or adjustments based on technological advancements or operational needs.

Table 1: Pricing Overview for Smart Water Meters

Feature
Initial Cost per Meter per Month (OMR)
Negotiated Cost per Meter per Month (OMR)
Post-8 Years Potential Cost (OMR)
Standard Meter
3.0
N/A
To be negotiated
Meter with Remote Disconnect
3.5
3.7 (Reduced from 4.5)
To be negotiated
Further Reduced Price
N/A
3.5 (Potential)
To be negotiated

Note: Post-8 years costs are based on minimal monthly charges primarily covering operational costs and are subject to negotiation.

Table 2: Maintenance and Warranty Overview

Period
Maintenance Inclusion
Warranty Coverage Details
During 8-Year Contract
Included in monthly cost (specifics to be confirmed)
Terms to be specified, expected to cover the contract duration
Post-8-Year Contract
To be negotiated (not included as standard)
To be negotiated

Note: Maintenance post-8 years is crucial and should include regular updates and technical support, terms of which must be negotiated prior to contract conclusion.

Table 3: Financial Commitments and Asset Ownership

Item
Details
Asset Ownership Post-Contract
Meters transferred to Muscat Bay; conditions apply
Continuation of Services
Price fixed if continuing with MAAS; exact rate to be negotiated
Exit Strategy Costs
Early termination clauses and penalties (if any) to be clearly defined

Note: Ensuring flexibility in the contract to adapt to future technological and operational changes is essential for long-term viability.

These tables offer a structured view of the pricing, maintenance, warranties, and strategic financial considerations associated with the smart water metering project between Muscat Bay and Tadoom. They serve as a quick reference for key financial details and can be used in discussions and future negotiations to ensure all terms are favorable and transparent.