Negotiation is the process in which it is possible to listen, analyze and take the right actions. Contract negotiations should not depend on who is the smartest (supplier or seller), but on achieving the objective of concluding a fair, reasonable and beneficial contract for both parties. Let`s get to the meat of the 3-step contract negotiation process. If the negotiation process fails and no agreement can be reached, a new meeting will be required. This will prevent all parties from being involved in heated discussions or clashes that can not only waste time, but also harm future relationships. Consideration should be given to the length of the contract, the payment cycle, the termination clause, the liability of both parties, the extent of the services, what they will do and what they will not do, etc. Negotiation is a method that allows people to resolve disputes. It is a process that allows for compromises or agreements while avoiding quarrels and quarrels. If, at any point in the negotiation meeting, you discover that you have not prepared for a particular topic, simply mention that you should return to the supplier. Then you`ll find the other problems.
Be fully aware of the decision-making power you bring to the table. More importantly, before you even sit down to start negotiations, you clarify the limits of the other party`s decision-making powers. One of the most common gambites that is used to gain advantage over us, since we are about to reach this critical phase of the agreement, occurs when the other party shrugs and calmly advises that they must erase it with the “powers that are”. Our coming chord is deflated, like the air coming out of a balloon, and we find that we are caught in the squeeze of shuffle power. You could stand for “a few more concessions.” This team will be your think tank to ensure that every aspect of the agreement is well thought out and that all issues are addressed. Negotiations are, to simplify, a five-step process. These steps are shown in Figure 1. It is important that all parties involved remain open in order to reach an acceptable solution. Any agreement must be fully clarified so that both parties know what has been decided. Preparation is one of the most neglected aspects of the negotiations. Neglect of this decisive component can easily lead to a bad agreement or a failed agreement that should not have occurred.
Very few of us like to do our homework, but we know that if we are not ready, we will not be able to take the test. It sounds like something too simplistic to say, but the consequences can be disastrous. What position do you prefer before you start negotiating – to be on a wobbly ground or to be confident in your preparation? Absolutely after you. In fact, to write about the contract negotiation process, it may take a lot more than what is written here, but we hope it will simplify the contract negotiation process in just 3 steps. And that`s the key — easy. Sometimes it is helpful to take notes during the discussion phase in order to record all the points raised if further clarification is needed. It is extremely important to listen, because when there is disagreement, it is easy to make the mistake of saying too much and listening too little. Each party should have the same opportunity to present its case. Take the agreement and tickle your schedule or the schedule of the person concerned with everything you can be responsible in the agreement, namely; Payment plan, audit process, inspections, etc. Once an agreement has been reached, procedures for implementing and monitoring the terms of the agreement will need to be developed at this stage.
They put all the information in a format acceptable to both parties, and they formalize it. Once we understand our priority objectives and what we perceive as on the other side in terms of the desired outcome, we will be able to determine what areas of potential convergence are. That is where we could find the basis for finding a region of compromise.