Analysing the project in relation to your community profile will also allow you to assess potential business opportunities against present levels of capital, management and technical skills in the community. For instance, your community may be excluded from bidding on tenders relating to work associated with the development because, in some cases, the design of a tender excludes smaller entities, such as a First Nations band or group of local companies, from bidding.

Environmental and cultural issues will be considered to highlight the implications of altering traditional land-use patterns. From these, you can determine the amount and nature of compensation, or the measures needed to minimize environmental damage.

The Negotiation Process

There are three common forms of negotiation over resource development: direct negotiation, mediated negotiation and arbritation.

As the term suggests, direct negotiation is a face-to-face discussion between both parties. In a mediated negotiation, an appointed mediator _ _ an individual who is called in to help settle a dispute _ _ works with both sides, separately and together, to help develop negotiating positions that will lead to an agreement. In the arbitration process, both parties agree that if they fail to reach an agreement, an arbitrator can impose a resolution. The arbitrator, whose powers are extensive, is usually appointed by an external body only when negotiations break down.

Direct Negotiation

Organization and clarity are the goals here. Clarify who makes up the negotiating team (the spokespersons) and who are the advisors to the team. Too many voices confuse the issue and may weaken your position.

The negotiating team should have the full backing of the community. Without it, your team's bargaining ability is weakened. To ensure community backing, set up a process of consultation and ratification to establish ground rules for the team. For example, is the team allowed to bargain and make decisions in the name of your community? Will your community review specific items and positions as they are negotiated?

Ideally, the team should be your community's voice, with the authority to negotiate without having to check back all the time. Constant checking and verifying throughout the process waste time, undermine the team's credibility and increase the risk of leaks concerning the team's position to the other party.

At the outset, make sure that each party agrees with the negotiation process and how it is to be paid for, accepts the responsibility to negotiate settlements and approves the ratification procedure.

Finally, have your negotiating position established on all major and administrative issues to be covered by the agreement.

Mediation

In a mediation process, the groundwork is the same but the process is a little different. Choose a mediator who is respected by all parties. Allow the time necessary for thoughtful selection.

In consultation with the other parties and the mediator, decide and document the issues to be dealt with by the mediator and how the costs of the mediation process will be covered.

Prepare submissions and funding requests to any organization whose co-operation is needed to fulfil any part of the agreement not carried out by the developer.

Arbitration

Again, the groundwork is the same. However, for a successful settlement, all parties must accept and have faith in the abilities and unbiased viewpoint of the arbitrator whose ruling on the discussion is final and binding.

Develop the Content and Format of the Agreement

The agreement must include the issues raised by both parties, reflect their positions and ensure that promises can be fulfilled. Retaining legal advice when drawing up the agreement is important.

Review the text of the agreement with your advisors before signing. This ensures that:

• wording is clear and accurately reflects intentions;
• all the essential issues have been included;
• time frames, outlines of responsibilities, structures for implementation, allocation of costs and penalties for default are included;
• measurable objectives are specified so progress can be evaluated; and
• a monitor is identified to supervise the agreement.

Depending on the scope of the agreement and the negotiating team's arrangements with your community, additional activities may include:

• ratification by your community;
• review of the agreement by your community's legal counsel;
• decisions about who should implement each of the specifics of the agreement;
• establishment of administrative structures to activate and maintain the agreement;
• establishment of penalties for non-compliance and deciding who will enforce them;
• review of the agreement by all parties at appropriate intervals;
• evaluation of the effectiveness of the agreement in achieving First Nation participation; and
• allocation and specification of costs for all the above activities.