Contract negotiation is an art and science that necessitates education, continuous training, and diverse experience. Acquisition of negotiation skills requires a substantive understanding of the contract law and procedures of a contract. As negotiations contribute significantly towards the performance of an organization, skilled and experienced negotiators should be involved. Adequate time and effort are required for the preparation and establishment of a justifiable negotiation position. In addition, preparation enables the negotiator to have substantive knowledge of the contract’s expectations and boosts his or her confidence in facing any challenges during negotiation. The negotiation process attributed to an organization boosts its competitive standing and the organization gains trust and respect from the contracts issuers.
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Interpersonal skills and knowledge enable a negotiator to build a robust rapport between the contractor and the negotiating panel. This skill facilitates the creation of a friendly, but the business-minded environment at the negotiation table. The use of effective communication allows the negotiator to present the ideas and requirements of the organization in a precise but concise manner to the panel. With the minimum time used for clarification of the demands and expectations of the organization, the negotiator controls the proceedings at all times and limits delays on secondary issues. A skillful negotiator tackles complex disputes that may arise during negotiation accordingly. A negotiator has the capability to bring in issues that could be beneficial to the organization, but may have been left out in the contract specifications, and convince both parties on the need to consider them. An effective presentation of the demands of the organization in line with the expectation of the contractor boosts the organization’s chances of winning numerous contracts. This skillful personality improves the level of negotiation of an organization against its rivals, which in the end boosts the overall performance of the organization.
Courtesy and flexibility ensure that the negotiation process is conducive to every member at the negotiation table. A negotiator who portrays courtesy facilitates a peaceful and respectable discussion for the achievement of the negotiation objectives. Because of the existence of different individuals in the negotiation panel, for example, the old and the young, courtesy creates a win-win situation for every member. Moreover, courtesy by the use of appropriate language and communication techniques makes every participant in the negotiation process feel appreciated and respected. The flexibility of the negotiator plays a significant role in addressing the varying arguments of the contractor and the negotiating team to come into a concrete and final agreement. This trait enables the negotiator to deal with emerging issues in the discussion session skillfully and tactfully in accordance with the relevance of the subject matter. At the same time, the negotiator can ingest any demands of the contractor or organization and manipulate them in a manner to suits both parties and align their differences.
A well-informed and respectful negotiator improves the general rating and chances of consideration of an organization by a contractor. Initially, at preparation for negotiation, knowledge enables the negotiator to gather facts about the subject in order to limit shock and misconceptions at the negotiation time. During negotiation, the negotiator helps to guide the panel on the critical issues to be handled carefully and in a detailed manner. Diverse knowledge allows the negotiator to tackle any matter that arises during negotiation with confidence and certainty. The versatile information exhibited by the negotiator enables him or her to raise new issues, reflect on earlier discussions similar to the subject of interest and the possible solutions for any difficulties that might arise.
Preparation is a valuable strategy that a negotiator should employ in meeting the needs of both parties involved in the negotiation process. In this regard, a negotiator needs to identify and evaluate the organization’s objectives and interests. He or she should try to diagnose the contractor’s expectations, needs, and interests in the subject matter. This task enables the negotiator to collect relevant data and facts about the matter at hand. This backup information provides detailed background and supportive arguments for the negotiator’s presentation. With this knowledge, a negotiator can evaluate the likely impact of macro and micro issues relating to the subject of discussion. Nonetheless, the negotiator boosts his knowledge and develops skills for handling any eventualities during discussion.
In the preparation process of negotiation, documents, information, and any other necessary material is assembled with the assistance of the Board, stakeholders, lawyers and other professional advisers. The appropriate negotiation strategies require to be well documented and include alternative options. This process allows the negotiator to prepare his or her team by training or coaching them to meet the demands of the negotiation. At the same time, the negotiator can brainstorm with the team members for any shortcomings during preparation. This process provides the negotiator with an effective group, which is up to the task and well equipped with the knowledge for negotiation. While preparing, the negotiator enlightens the team members of the expectations of the contract negotiation and the need to portray a favorable image of the company. At the end of the preparation process, the negotiator should conclude the whole process with predictions of the likelihood of the contract negotiations outcome. He or she also can make final amendments to the whole process before the final day of presentation.