discussion and exchanging of what is needed and what is to be eliminated.
negotiation b/w devs and customers - limited resources - customers are asked to prioritize the requirements - make guesstimates on the conflicts that may arise.

risks of req.s are considered - negotiated in a way where the customer and developer are both satisfied.

Following are discussed:

• Availability of resources.
• Delivery time.
• Scope of requirements.
• Project Cost.
• Estimations on development.