Clear contract negotiation techniques are helpful for managers when it comes to preparing for effective and successful contract agreement. Negotiation involves an offer, a counter offer and concession and compromise with the aim of reaching an agreed position or outcome. According to Levin (2), the best practices of contract negotiation techniques primarily consist of six steps. First, the negotiator has to recognize the purpose of the negotiation process. The real purpose is accomplishing something and not just signing the deal. Second, the negotiator needs to ensure that stakeholders on both sides of the table are aligned for a smooth procession of implementation. Third, the negotiator should recognize that his or her dealings with the other party in the negotiation process impacts how both parties will work together in implementation. Fourth, the negotiator should not shy from confronting the hard issues rather than minimizing and repressing them to get the deal signed. Fifth, it is essential to ensure that one’s counterparts comprehend what they are agreeing to and can deliver. The negotiator needs to state the terms and conditions so that any potential difficulty or ambiguity is clearly stated. Finally, there is a need to pay attention during the process of transition from negotiations to implementation or execution.
As such, there are four primary things that are critical for any successful negotiation. One condition is mutual trust. Mutual trust does not exist but is rather built. A negotiator needs to be able to gain the trust of the other party in the sense that he or she is dependable and does not create surprises. Two, a positive relationship with the other negotiating party is necessary in order to exert some kind of influence. Such a relationship enables the creation of a common ground which aligns the goals and objectives of both parties. Three, both negotiating parties need to have shared interests. This means that both parties need to have shared goals and objectives. Four, a ZOPA (Zone of Possible Agreement) should be in existence (Gordon and Ertel 1). Each negotiator should be able to recognize his or her zone. It is from this zone that any additions or compromises can then be accommodated.
Works Cited
Gordon, Mark and Ertel, Danny. Best Practices: Negotiating. Ivey Business Journal, Oct. 2008. Web. 07 Feb. 2013.
Levin, Jon. Negotiation Best Practices to Achieve Better Agreements: Win-Win Solutions. Fasken Martineau, Jan. 2010. Web. 07 February 2013.
