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Effective Negotiation of a Contract Essay

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Updated: Jan 13th, 2022

Negotiation for a contract is an extremely involving process, which demands substantive knowledge and experience. The preparation process plays a critical role towards the success or failure of winning a contract. Under the preparation process, a negotiator, who is the supervisor of the whole activity, takes into consideration the starting point of planning, source of information, time management planning and essential sources of power. By trying to answer these questions, a negotiator enhances the possibility of undertaking a successful contract negotiation. Adequately planning and preparing for a contract improve the winning chances of a negotiation process.

The initial stage of planning and preparation for a contract involves deciding on the planning. This involves the process of brainstorming to find out the needs of the contract, compromise to be taken into account and the schedule by the team members. After analysing these significant elements of a contract, the team members will then determine and understand the objectives of the contract. In addition, an outline of the main and minor objectives will be clearly listed. The Identification of the main and minor components of the contract enables the team to come up with a definitive and defensive position during negotiation (Raiffa, 1982). Adequately covering the components of the contract gives the negotiating team humble time to identify the expectations and demands of the contracting team. The evaluation and measurement of these facts contributes significantly to the negotiation process, as the negotiator will have confidence in presenting the terms and conditions of the organization. Additionally, the negotiator will have a deeper insight to reflect, formulate, and streamline any issue that might not have been mention in the contract.

The acquisition of relevant and essential information for the contract is critical to the success of the negotiation process. A negotiator should identify the possible sources of relevant information that gives sufficient data and facts. The necessary information is obtained from thorough research on similar experiences and earlier documented contract processes. Acquiring this information imparts the negotiator with tangible facts and data that give him or her detailed contents of the contract to be negotiated. Data and facts can be obtained from several sources, which include educational books, journals, magazines, reports, and any other relevant materials (Sist, 1984). To supplement the information obtained, it is vital to have skills and experience in the contracting process in order to boost the chances of winning contracts.

Another element that is critical in the preparation of the contracting process is time management. Proper time utilisation in tackling critical and crucial matters of the contract promotes the chance of establishing sound and reasonable agreements (Guth, 2008). On this perspective, it is necessary to look into matters relating to the time devoted to contract planning, identification of the demands of the contract, and search of information.

At the end of the planning and preparation of a contracting process, it is sufficiently vital to highlight the sources of power that gives the team better chances over its competitors. This refers to the abilities that will influence the outcome by use of logic and validity or legitimacy of a position without forcing any action (Marsh, 1990). There exist numerous sources of power. These include persistence, competition, expertise, legitimacy, involvement and the right attitude. The ability to acquire these skills prior to and portraying them at the time of the contracting process will contribute enormously towards successful negotiations. Similarly, a negotiator can present the demands of the organisation and guide the whole group involved in the negotiation in an objective and impartial manner. The stimulation and involvement of every person involved in the negotiation process gives a sense of appreciation and importance to the participants.

From experience that I gained while undertaking a negotiation process involving a contract to supply foodstuff to a college, I noted that adequate planning and preparation for a contract procedure is rewarding. It gives a negotiator robust and defensive grounds that meet the demands of the team overseeing the negotiation. At the same time, my negotiation skills played a significant role in my successful winning of the contract.


  1. Guth, S. R. (2008). The contract negotiation handbook: an indispensable guide for contract professionals. Morrisville, N.C.: Lulu Press.
  2. Marsh, P. D. (1990). Contract negotiation handbook (2. ed.). Aldershot: Gower.
  3. Raiffa, H. (1982). The art and science of negotiation. Cambridge, Mass.: Belknap Press of Harvard University Press.
  4. Sist, A. J. (1994). Understanding and avoiding the contract negotiation impasse. Monterey, Calif.: Naval Postgraduate School.
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