Negotiated investment processes
Frequently asked questions
What are the benefits of a negotiated process![[definition]](/sites/all/themes/frsttheme/images/glossary-icon.png "Negotiated processes allow us to negotiate directly with researchers who have an established track record with us to determine the scope of a new research contract that builds on an existing one.")
?
The benefits of negotiation are numerous. Research organisations benefit from security of funding (not needing to win a contest to receive further investment and typically having funding confirmed for four to 10 years).
For the Foundation, negotiation allows us to play a more active role in shaping research proposals, making it more likely that resulting research contracts will align with priority areas we have identified for New Zealand.
Are negotiated contracts available in all investment areas?
No, only in research areas where there are eligible contracts.
What happens if the Foundation and the research organisation can't come to an agreement?
If either party is only partially satisfied with the final proposal, based on the quality assurance process or other factors, the three main options are:
- Settle on a shorter term (one to three years) contract with a review planned for the end to potentially extend the contract.
- Agree on a transitional contract (one to two years) to wrap up the contract.
- Contract only a small amount of the full scope, either on a short-term or transitional basis, with the remaining funds returning to the medium-term contestable pool for that research area.
Is there a limit to how much the Foundation will invest by negotiation?
Yes, in the policy direction we received from the Ministry of Research, Science and Technology, we are permitted to invest up to 30 percent of funds in a particular research portfolio by negotiation.
Can a contract be negotiated before it has reached the end of its term?
No, not currently.
If an organisation with a contract eligible for negotiation turns down the invitation, can another contract be negotiated in its place?
No. Any money allocated to the contract eligible for negotiation returns to the medium-term contestable pool for that research area.
How similar does the research subject in the original contract and the negotiated contract need to be?
Very similar. The negotiated contract needs to be a continuation of the original contract aimed at achieving a similar outcome.