Striking a good deal – Contract negotiation
Contract negotiation is more than just price negotiation. An organization must discuss every area of concern during contract negotiation. To build a good working relationship, a contract should establish a common understanding between the involved parties and must give equal consideration to feasible expectations from the parties.
Collaborating for success
Contract negotiation is a critical stage and should only be carried out by experienced negotiators who are proficient in negotiation techniques and strategies. If you are planning to hire new vendors or if you wish to re-evaluate your current contract negotiation strategy to see if you can create more value, I can help.
I have several years of experience in successful contract negotiation for various industry segments. I will apply my knowledge to devise your negotiation strategy that will eliminate discrepancies and ensure maximum benefits to involved parties.
Contract negotiation – My approach
- Gaining insight
It is important that I understand your requirements and expectations from specific vendors. Since expectations can be very many, I will only consider those that are both relevant and feasible. I will also study the market of the vendors’ to be well informed on the market prices, availability, etc.
I believe in contracts that equally benefits all involved parties and hence it is only fair that I gain an understanding of the vendors’ expectations as well. In addition, I will also conduct a preliminary SWOT analysis of the vendors to identify their strengths and weakness, to predict major areas of concerns.
- Preparing and planning
A strategic plan for contract negotiation is more of a guideline than an exact plan, as it is difficult to entirely control the course of conversation between people. Whether you hire me for the job or appoint your own negotiator, I will deliver a plan that will make the negotiation process more efficient. The plan will broadly cover all relevant points:
- Clearly lay down all your requirements including the non-negotiable ones.
- Best approach and negotiation techniques applicable to your contract.
- Negotiation techniques will be explained in detail, so that you can take control of the negotiation.
- Predict questions from the other parties and suggested answers.
- Predict counter arguments from the other parties and corresponding appropriate responses to prepare you.
- Questions on potential risks and liabilities will be raised.
- Legal considerations.
- BATNA (Best Alternative To a Negotiated Agreement)
- Closing the deal
Once the parties have arrived at a mutual agreement, I will help you summarize and identify the follow-up activities and record the lessons learnt to enable you to capture areas of improvement, if any, for future negotiation.