Contract negotiation is a process whereby the parties involved go through the give and take process in order to reach an agreement finally. Contract negotiator is a person who participates in the contract negotiation process. A contract negotiator cannot be any business person. The contract negotiator needs to be someone who possesses very competent negotiation skills for the contract to be a success. A contract negotiator needs to possess a great deal of knowledge and skills that are critical for the success of the negotiation.
Contract negotiator needs to have knowledge on the terms and conditions of the negotiation that is being made. The contract negotiator also needs to understand the contract terms and conditions and be able to draft a good contract language. The negotiator should have knowledge about the negotiation price, negotiation contract and contract disputes that may arise. Being knowledgeable about the contract terms and conditions means the negotiator will know what they are getting into, and this will enable them to make the right decision so as to be successful (Guth 2008).
The contract negotiator should also have competent skills - both hard and soft skills. Firstly, the negotiator needs to have the skill to win. With this skill, the negotiator draws a self-assessment survey. This self-assessment survey will help the negotiator determine whether they have the required negotiation skills and discover what areas they need to improve; this will be through assessing the answers of the self-assessment survey (Garrett 2005).
The hard skills required by a contractor negotiator include: technical skills, legal knowledge, contract management skills, computer literacy skills and financial skills. The financial skills are important when selling or buying products or services in the business sector. The negotiator should be comfortable dealing with percentages and numbers. In addition, the negotiator needs to understand how price, cost and profit are determined and evaluated by each party that is involved in the contract negotiations. The negotiator also needs computer skills in order to be able to operate in a digital world. Moreover, the negotiator should be able to communicate electronically. Legal skills will help the negotiator understand contract management process and tailor the terms and conditions specified appropriately. Technical/products/service skills enable the negotiator to understand the market they are selling or buying products (Garrett 2005).
The soft skills required include leadership skills, interpersonal relation skills, communication skills and trust/integrity skills. Integrity skill will make the other side accommodate the negotiator willingly. This is because a negotiator with integrity is a person who has principles and lives by them. Communication skills will enable the negotiator apply the best practices of communications and comfortably communicate with others (Garrett 2005).
The strategy an effective negotiator should consider so as to achieve a more favorable contract is the principle of the four Ps people, process, performance and price. By understanding people, the negotiator will know the best communication method to be used and this will make the negotiation process easy as there will be no/minimal barriers to their communication. When the negotiator understands the negotiation process, then they will be able to explain to the other side how things will be carried out thus making the other side have confidence in the negotiator. Confidence means the other side believes in the negotiator thus increasing chances of succeeding in the negotiation. Knowing the performance means understanding what one wants from the negotiation. By knowing what one wants, the negotiator will be able to negotiate for the benefit of their side. In the end, when the contract goes through, the negotiator will have achieved a favorable contract. Understanding the price will make the negotiator know what they are trying to win, thus the negotiator will try to win a favorable contract based on the price offered by the other side (Garrett 2005).
References
Garrett, G. A. (2005). Contract negotiations: Skills, tools, and best practices. Chicago, IL: CCH.
Guth, S. R. (2008). The contract negotiation handbook: An indispensable guide for contract
professionals. Morrisville, N.C: Lulu Press.
