Contract negotiation
Introduction
Throughout the semester, the lesson has been about acquisition and contract management negotiations. According to what we learned, a contract is simply an agreement between two or more parties over a particular issue, can either be temporary or permanent, and it is often governed by a specific set of agreed terms and conditions. Contract negotiation is the process of discussing the contract terms until the involved parties reach a final agreement over the issue. In this paper, I will
explain what we have learned in contract negotiation
s.
We learned that b
Getting ready for negotiation
This involves mental preparation on the outcomes of the talks. Keep positivity in mind; however, you should be flexible on some decisions that will be made. The other parties may not accept the contract with open arms. They may have opposing issues because everyone wants the best for their team. The best thing is to have an open mind.
Step 2: Discussion and Development
This is the stage where the actual meeting and negotiation takes place. We learned that with a reasonable amount of time and energy on preparation, this stage would be a success in addition to running smoothly. The scene includes sitting down with the other parties involved to negotiate over the contract. In some cases, people hire negotiation experts, but some people negotiate on their own. During the negotiation;
Practice communication and active listening. Communicate clearly with the other parties and let them know that you are listening to them by seeking clarification on issues raised by them. Listening may help in identifying the area that you can compromise on hence help in decision making.
Be positive. Second the points that both of you agree on. Avoid saying no to everything they say or suggest. No one would want to sign a contract they had no say in, or most of their issues were rejected without enough explanation.
Keep emotions in check. Negotiations can turn to be aggressive, and hence it will stir some emotions, especially anger and frustration. These emotions lead to a failed negotiation. Therefore one must be able to control emotions during such discussion even though the other party may seem to have trouble handling emotions. Controlled emotions help to prevent a small argument from accelerating into something bigger.
In case there is a new issue that you overlooked or did not tackle, request for little time to go through it first before making decisions. Decisions made in a rush come with a high cost to pay afterward.
Practice professionalism throughout the negotiation process. It builds an understanding of the involved parties. Handle negotiation with the seriousness it deserves, but remember to be friendly too.
Practice non- verbal communication. This encourages the other negotiator to keep on talking while you are listening keenly. It shows that they have your attention to what they are saying. It may also mean a lot in terms of respect for their opinions and suggestions.
As we learned, with these tips, the meeting should be able to go well. The two parties may depart with both agreeing on the changes made in the contract and the issues discussed. No party will feel as if it was underestimated or that they were not listened to. Also, there will be one more or more business partners made in the end and with good relations too.
Step 3: closure
After the meeting, make a summary of what discussed. Classify the report on the things that you agreed on and the things that both parties will have to go back to. During the closure, you should clearly state; The payment terms, when the contract will start, the price agreed on the deal, and what the contract includes.
Let it be adjustable just in case the other party may have something to add or may not agree on something. For accountability, Send the report to the other parties involved via email so that both can be on the same page. Note how the party will reply and take into consideration what they said.
After a successful negotiation process, there should be a contract signing. This happens after both parties have agreed on everything, including the terms of the contract. The contract is presenting a legal binding document that both parties agree to and have to follow what it states. It has consequences whenever it is not implemented by one of the parties, or the party is being reluctant to comply with issues that were earlier agreed upon.
Negotiation is a better method of performing a business transaction compared to sealed bidding and simplified acquisition. The consultation allows for both parties to talk about the proposed contract, the contract can be revised and discussed, and proposals can be made during the discussion. Negotiation helps both parties to arrive at a fairground with factors considered from both sides.
However, it presents with it its share of challenges. Negotiation is voluntary. Any party can withdraw at any desired time; however, this leads to a wastage of time and resources that had been put in place to ensure that negotiation takes place. Some issues raised are not negotiable; hence one party may find it difficult to compromise with some terms within the contract; therefore, the parties may leave the room without reaching an amicable agreement. There is also an issue of the involved parties being unequal. This may lead to a one-sided negotiation and decision making, which is not fair to the lesser viewed party.
We did not only learn in terms of business but also, we have been able to acquire some skills such as critical thinking, problem-solving, decision making, planning, strategy implementation, persuasion, communication skills, and time management. We learned that some values are essential such as patience, honesty, integrity, and anger management. These will not only help during negotiation but also in our day to day life and choices that we make in every moment.
Conclusion
In conclusion, we learned that excellent preparation results in a good negotiation, which in turn results in successful businesses and good relations with the involved parties even after the contract is over. We should all strive to obtain negotiation skills and understand what contract negotiation for us to excel in the future and mutually benefit is.