contract negotiation

Jacques  Folon  www.folon.com    

Partner  Edge  Consulting  

Maître  de  conférences    Université  de  Liège    Professeur  ICHEC  Brussels  Management  School    Professeur  invité    Université  de  Lorraine  (Metz)  ESC  Rennes  

Law and contract negotiation Contract negotiation

Table of content1. Introduction to contract negotiation

2. Contract negotiation skills

3. Basic principles and myths

4. Phases and main types of contracts and negotiations

5. Context & communication

6. Teams & resources

7. Pricing and KPI’s

8. Conflicts in contract negotiation

9. Contract negotiation process

10.Emotional intelligence

11.telephone & virtual contract negotiation

12.Contract negotiation best practices

13.The seven habits of bad negotiators

14.Closure & evaluation

15.After contract’s signature

CONTRACTS ARE IMPORTANT

What is contract negotiation?

Negotiation is the act of two parties discussing the pros and cons of a particular contract at hand in an attempt to

arrive at an agreement.

The Market

The Market Swings Both Ways How to adjust your planning to work within the current environment •“Sellers’” markets versus “Buyers’” markets •Where the market is today •Be flexible •Explore new destinations

Table of content1. Introduction to contract negotiation

2. Contract negotiation skills

3. Basic principles and myths

4. Phases and main types of contracts and negotiations

5. Context & communication

6. Teams & resources

7. Pricing and KPI’s

8. Conflicts in contract negotiation

9. Contract negotiation process

10.Emotional intelligence

11.telephone & virtual contract negotiation

12.Contract negotiation best practices

13.The seven habits of bad negotiators

14.Closure & evaluation

15.After contract’s signature

Negotiation skills are important

Negotiation skills

What are the 5 most important negotiation skills?

PERMANENT IMPROVEMENT

Table of content1. Introduction to contract negotiation

2. Contract negotiation skills

3. Basic principles and myths

4. Phases and main types of contracts and negotiations

5. Context & communication

6. Teams & resources

7. Pricing and KPI’s

8. Conflicts in contract negotiation

9. Contract negotiation process

10.Emotional intelligence

11.telephone & virtual contract negotiation

12.Contract negotiation best practices

13.The seven habits of bad negotiators

14.Closure & evaluation

15.After contract’s signature

Basic principles of contract negotiation

Myth n°1Negotiation is only for the pros.

WRONG.

Negotiation is how we learn to use our skills and qualifications to their fullest extent.

As we are all natural sales people (we sell ourselves and our services daily!), we must learn to lay out our cards for a contractual agreement and play our hand.

Myth N°2

Negotiation is an easy way to lose a contract.

If done properly, one should never worry about losing a potential contract with a client.

As long as a middle ground is met, both parties should be happy to an extent.

If you try to sway everything to your favor, and it is not a win-win for both parties, you can potentially lose the opportunity.

MYTH N°3I’m not good enough to negotiate.

Absolutely wrong.

We all have certain talents and skills that make us stand out in the marketplace.

Do your research, take time to figure out what you can over deliver in, and always use it as your secret weapon in

negotiating with a client. If you can surprise them and make their lives easier

somehow, do just that.

Table of content1. Introduction to contract negotiation

2. Contract negotiation skills

3. Basic principles and myths

4. Phases and main types of contracts and negotiations

5. Context & communication

6. Teams & resources

7. Pricing and KPI’s

8. Conflicts in contract negotiation

9. Contract negotiation process

10.Emotional intelligence

11.telephone & virtual contract negotiation

12.Contract negotiation best practices

13.The seven habits of bad negotiators

14.Closure & evaluation

15.After contract’s signature

Phases of contract negotiation

Lease or buy ?

NEGOTIATION CONTEXT

What  agenda  should  be  followed?  Where  will  the  nego7a7on  be  held?    How  long  will  the  nego7a7on  take?    What  agents,  observers  or  advisers  will  be  involved  in  the  nego7a7on?    What  might  be  done  if  nego7a7on  fails?    How  will  we  keep  track  of  what  is  agreed?    How  do  we  know  whether  we  have  a  good  agreement?  

Table of content1. Introduction to contract negotiation

2. Contract negotiation skills

3. Basic principles and myths

4. Phases and main types of contracts and negotiations

5. Context & communication

6. Teams & resources

7. Pricing and KPI’s

8. Conflicts in contract negotiation

9. Contract negotiation process

10.Emotional intelligence

11.telephone & virtual contract negotiation

12.Contract negotiation best practices

13.The seven habits of bad negotiators

14.Closure & evaluation

15.After contract’s signature

THE COMMUNICATION

QUESTIONS DURING CONTRACT NEGOTIATION

QUESTIONS DURING CONTRACT NEGOTIATION

Table of content1. Introduction to contract negotiation

2. Contract negotiation skills

3. Basic principles and myths

4. Phases and main types of contracts and negotiations

5. Context & communication

6. Teams & resources

7. Pricing and KPI’s

8. Conflicts in contract negotiation

9. Contract negotiation process

10.Emotional intelligence

11.telephone & virtual contract negotiation

12.Contract negotiation best practices

13.The seven habits of bad negotiators

14.Closure & evaluation

15.After contract’s signature

ADVANTAGE OF WORKING IN TEAMS

RESOURCESPersonnel.  Sufficient  staff,  with  the  right  experience  and  skills.  Finance.  There  must  be  an  adequate  budget.  Time.  Sufficient  and  appropriate  7me  must  be  set  aside.  InformaHon.  Informa7on  –  about  the  supplier,  the  market,  

environmental  factors,  bargaining  posi7ons  and  so  on  –  is  a  key  resource  for  nego7a7on.  Space  and  faciliHes,  if  the  nego7a7on  is  to  be  conducted  via  a  face-­‐

to-­‐face  mee7ng  in  a  chosen  venue.  InformaHon  and  communicaHon  technology  (ICT)  resources,  if  the  

nego7a7on  is  to  be  conducted  via  ‘virtual’  mee7ngs,  using  telephone  conference  calls,  tele-­‐conferencing  or  web-­‐conferencing

Table of content1. Introduction to contract negotiation

2. Contract negotiation skills

3. Basic principles and myths

4. Phases and main types of contracts and negotiations

5. Context & communication

6. Teams & resources

7. Pricing and KPI’s

8. Conflicts in contract negotiation

9. Contract negotiation process

10.Emotional intelligence

11.telephone & virtual contract negotiation

12.Contract negotiation best practices

13.The seven habits of bad negotiators

14.Closure & evaluation

15.After contract’s signature

Necessity of supplier’s performance measurement

Pricing range of negotiation

Table of content1. Introduction to contract negotiation

2. Contract negotiation skills

3. Basic principles and myths

4. Phases and main types of contracts and negotiations

5. Context & communication

6. Teams & resources

7. Pricing and KPI’s

8. Conflicts in contract negotiation

9. Contract negotiation process

10.Emotional intelligence

11.telephone & virtual contract negotiation

12.Contract negotiation best practices

13.The seven habits of bad negotiators

14.Closure & evaluation

15.After contract’s signature

Conflict in negotiation

When a conflict is present, it makes a negotiation seem more necessary than when there is not.

Conflict typically leads to less of something for both parties.

For example, less money is to be made if the deal is to move forward with no negotiation.

Question if you are struggle in a conflict

1) Are all the parties interested in negotiating?2) If not, why is one or more of the parties reluctant?3) Can anything be done to make negotiation more attractive to them?4) Do the parties all know their alternatives to a negotiated settlement?5) Do they feel those alternatives are good?6) Do the parties have a legitimate leader or representative who could effectively negotiate for them? 7) Is a forum available for negotiations?8) Is a credible mediator available to assist in the negotiations?9) Do the parties agree on the credibility of this mediator?

Table of content1. Introduction to contract negotiation

2. Contract negotiation skills

3. Basic principles and myths

4. Phases and main types of contracts and negotiations

5. Context & communication

6. Teams & resources

7. Pricing and KPI’s

8. Conflicts in contract negotiation

9. Contract negotiation process

10.Emotional intelligence

11.telephone & virtual contract negotiation

12.Contract negotiation best practices

13.The seven habits of bad negotiators

14.Closure & evaluation

15.After contract’s signature

History of a contract negotiation

Contract negotiation process

Table of content1. Introduction to contract negotiation

2. Contract negotiation skills

3. Basic principles and myths

4. Phases and main types of contracts and negotiations

5. Context & communication

6. Teams & resources

7. Pricing and KPI’s

8. Conflicts in contract negotiation

9. Contract negotiation process

10.Emotional intelligence

11.telephone & virtual contract negotiation

12.Contract negotiation best practices

13.The seven habits of bad negotiators

14.Closure & evaluation

15.After contract’s signature

Table of content1. Introduction to contract negotiation

2. Contract negotiation skills

3. Basic principles and myths

4. Phases and main types of contracts and negotiations

5. Context & communication

6. Teams & resources

7. Pricing and KPI’s

8. Conflicts in contract negotiation

9. Contract negotiation process

10.Emotional intelligence

11.Telephone & virtual contract negotiation

12.Contract negotiation best practices

13.The seven habits of bad negotiators

14.Closure & evaluation

15.After contract’s signature

Table of content1. Introduction to contract negotiation

2. Contract negotiation skills

3. Basic principles and myths

4. Phases and main types of contracts and negotiations

5. Context & communication

6. Teams & resources

7. Pricing and KPI’s

8. Conflicts in contract negotiation

9. Contract negotiation process

10.Emotional intelligence

11.telephone & virtual contract negotiation

12.Contract negotiation best practices

13.The seven habits of bad negotiators

14.Closure & evaluation

15.After contract’s signature

Table of content1. Introduction to contract negotiation

2. Contract negotiation skills

3. Basic principles and myths

4. Phases and main types of contracts and negotiations

5. Context & communication

6. Teams & resources

7. Pricing and KPI’s

8. Conflicts in contract negotiation

9. Contract negotiation process

10.Emotional intelligence

11.telephone & virtual contract negotiation

12.Contract negotiation best practices

13.The seven habits of bad negotiators

14.Closure & evaluation

15.After contract’s signature

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Table of content1. Introduction to contract negotiation

2. Contract negotiation skills

3. Basic principles and myths

4. Phases and main types of contracts and negotiations

5. Context & communication

6. Teams & resources

7. Pricing and KPI’s

8. Conflicts in contract negotiation

9. Contract negotiation process

10.Emotional intelligence

11.telephone & virtual contract negotiation

12.Contract negotiation best practices

13.The seven habits of bad negotiators

14.Closure & evaluation

15.After contract’s signature

EVALUATION

EVALUATION

Table of content1. Introduction to contract negotiation

2. Contract negotiation skills

3. Basic principles and myths

4. Phases and main types of contracts and negotiations

5. Context & communication

6. Teams & resources

7. Pricing and KPI’s

8. Conflicts in contract negotiation

9. Contract negotiation process

10.Emotional intelligence

11.telephone & virtual contract negotiation

12.Contract negotiation best practices

13.The seven habits of bad negotiators

14.Closure & evaluation

15.After contract’s signature

CONTRACT SIGNED BUT…

CONTINUOUS PROCESS

CreditsContract Negotiations: Prepared and Fair are Effective in Any Market http://fr.slideshare.net/KristiCaseySanders/contract-negotiations-prepared-and-fair-are-effective-in-any-market?qid=0ca75703-dde2-4bbf-a3bb-8c3f0615918d&v=default&b=&from_search=2

Contract negotiation, A.Abouhana,http://fr.slideshare.net/AdelAbouhana/contract-negotiations-40072105?qid=0ca75703-dde2-4bbf-a3bb-8c3f0615918d&v=default&b=&from_search=5

The ultimate negotiation guide,http://fr.slideshare.net/coquitoday/the-ultimate-contract-negotiation-guide?qid=0ca75703-dde2-4bbf-a3bb-8c3f0615918d&v=default&b=&from_search=7

Contract negotiation, K. Sanders,http://fr.slideshare.net/KristiCaseySanders/contract-negotiations-beyond-the-basics?qid=0ca75703-dde2-4bbf-a3bb-8c3f0615918d&v=default&b=&from_search=8

Negotiating and Contracting in Procurement and Supply, CIPS,http://fr.slideshare.net/timkumwenda/negotions-and-contracting?qid=0ca75703-dde2-4bbf-a3bb-8c3f0615918d&v=qf1&b=&from_search=23

Elizalde, D., how to successfully negotiate your contracts,http://fr.slideshare.net/daniel_elizalde/how-to-successfully-negotiate-your-project-contracts-daniel-elizalde?qid=0ca75703-dde2-4bbf-a3bb-8c3f0615918d&v=qf1&b=&from_search=33

Steger, M., The seven habits of highly ineffective contract negotiators,http://fr.slideshare.net/KeglerBrown/steger-seven-habits?qid=0ca75703-dde2-4bbf-a3bb-8c3f0615918d&v=qf1&b=&from_search=38