Effective Contract Negotiation

Many deals are lost though poor negotiation skills and failure to identify your bargaining power. As an effective commercial manager it is vital that you are equipped to negotiate in many different situations to get the results you want and need every time.

This intensive one-day workshop will deliver the necessary skills to anticipate the other party’s reaction and response to a given proposal and pro actively counteract any objections to achieve the desired outcome. By the end of the course you will be able to ensure a ‘win-win’ outcome and the best possible solution for all parties involved in a negotiation.

What benefits will be gained from attending this workshop

This workshop will help you to:

• PREPARE for any negotiation by doing the necessary groundwork
• IDENTIFY your bargaining position
• UNDERSTAND the position of the other party in order to create a more attractive proposition
• MASTER proven negotiation tools and tactics
• ACCURATELY select the appropriate style of negotiation in the given situation
• RECOGNISE potential difficulties that may hinder negotiations and propose alternative solutions
• COUNTERACT a rejection with an alternative proposal or further justification for the original proposition
• ACHIEVE a ‘win-win’ situation

INTERACTIVE NEGOTIATION SESSIONS

Delegates will have the opportunity to actively participate in every stage of a negotiation process and will learn to recognise vital influencing opportunities to resolve stalemate situations. They will learn how to further investigate what each party’s objectives are in the negotiation and propose alternative solutions which meet, as far as possible, the objectives of both parties.

Who should attend this seminar?

Every member of the project and contract delivery team should attend, especially those:

• Involved in the execution of commercial contracts
• Accountable and/or responsible for the successful completion of the contract
• Involved in the drafting and negotiation of the final contract documents
• Needing to enhance their negotiation skills to achieve the best possible outcome

This seminar has been designed for non-lawyers.

The Delivery Style

This practical, hands-on workshop uses group work and interactive sessions and also gives the participants a chance to benefit from other delegates experience as well receiving critique and advice from our expert trainer. Delegates will have the opportunity to use the tools and tactics covered in the programme in a face-to-face role-play scenario.

SESSION ONE

The commercial environment

• Understanding why parties are in business and signing up contracts – making a profit
• Maximising profit while simultaneously minimising risk
  • making a good return on investment for shareholders/stakeholders
  • healthy cash flow, good turnover, repeat business
  • profitable business not business at any cost or at a loss
  • survivability/growth
• Understanding the ‘balancing game’ between price and risk/scope

SESSION TWO

Understanding your bargaining position and achieving the best possible outcome

• Defining your objective/priority in a negotiation and the objective of the supplier
• Identifying strengths and weaknesses of each of the negotiating parties
• Recognising each parties ‘Best Realistic Alternative’ (BRA) to moving on this point under negotiation
• Establishing the bargaining power, and bargaining position of the negotiating parties

Alignment exercise
Delegates review the proposition and answer a set of questions to determine what their bargaining position is.

SESSION THREE

Negotiation styles and aligning your style to your bargaining position

• Bargaining
• Logic
• Emotion
• Threat
• Acceptance
• Compromise

Negotiation style questionnaire
Applying the appropriate style to reflect your bargaining position. This section includes an individual questionnaire.

SESSION 4
Being prepared for a post-contract negotiation – potential settlement zones

• Anticipating other party’s response to your proposed contract terms
• Responding to their objection; justification for original proposal, counter proposals
• Delivering a ‘solution not problem’ – proposing ‘win-win’ alternatives to undesirable clauses

Risk/scope v price exercise
Delegates must list down all the elements of the contract, which they believe influence the price and could potentially be open to negotiation, if price became an issue.

Settlement zones exercise – Part 1
Delegates will be divided into two groups. Each group will be given the same sample contract and scenario of an event which requires several clauses to be negotiated. One group will be reviewing it from the perspective of buyers and one from the perspective of the suppliers. Delegates will be requested to review the clauses and try and propose alternative clauses which would give a win-win outcome and a solution to the problem which has arisen.

SESSION 5

Negotiation tactics

• Power of attorney
• Opening the negotiation
• Confidence
• Keeping the negotiation open
• Commercial confidentiality
• Moving forward
• Clarity/summarising/minutes

Settlement zones exercise – Part 2
In the same two groups, delegates will participate in a face-to-face negotiation.

Catherine Hurst is an independent consultant and trainer in the contract and commercial fields. She was formerly a Commercial Manager at BAe Systems, following previous contract/commercial roles with GEC and Siemens. She has extensive practical experience of: bid-management; contract negotiation; contract and subcontract management; and commercial risk management, both with UK and overseas customers and suppliers, in the private and public sectors. She is highly experienced and a very popular trainer, having a style which brings a potentially stale subject to life, creating interest and stimulating the enthusiasm of attending delegates.

Do you have a team of contract, procurement or project managers who are facing the unique challenges of negotiating your organisations contracts in this challenging time?

Many deals are being lost though poor negotiation skills and failure to identify your bargaining power. It is vital that your team are equipped to negotiate in many different situations to get the results you want and need every time.

Falconbury deliver Contract Management programmes In-House for a number of organisations in the UK and Europe. We focus on the needs of your team and develop training solutions which are measurable and produce long-term results.

Your next step is to call us now on +44 (0)20 7729 6677 or email us at info@falconbury.co.uk or use our contact form and find out how we can help. There are no commitments, and if we cannot help our advice and recommendations are free of charge.

Business and Contract Law

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Understanding and Drafting Standard Contract Clauses

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