PPT- 5 - Contract and agreement Negotiation.pptx

This is a presentation on how to negotiate contracts

1. Session 5 Contract Negotiation

2. Negotiation Strategies What Is Negotiation? Top Things - Knowing the Agreements, Terms and Talks - Knowing the structure of contracts - Being aware of commercials and scope - The negotiation position

3. Knowing the Stakeholders Impact of supply on business – how critical? Realize when the business has already committed Know your negotiating opponent - What is their authority - Your opponent’s objective’ - Trade-offs - Prepare a negotiation strategy High-ball/Low-ball You propose an offer significantly lower than fair market value The supplier proposes a value significantly higher than fair market value Put an offer without budging Leverage – no other option Opponent cannot sell the deal to his/her superior Phantom in the background you have never met Hard-ball The “Phantom Negotiation” Bluffing, Puffing and other styles Projecting false deadlines Good cop/bad cop Splitting the difference

4. Atmosphere Home court advantage Having the stakeholders present Number of people present Appearance Gridlock Scheduling the meeting

5. Narrowing the Issues and Closing the Deal Get down to business Identifying “Deal Breakers” Be flexible Closing

6. Conclusion Do your homework Prepare your principal arguments in writing Be creative Maintain your flexibility Do not be surprised

7. Questions?