1) Research all pertinent information – Understand everything about the company and the people with whom negotiations will be done. Similarly, in case of business negotiations, one should ensure that other departments involved in the upcoming negotiations are also in alignment with the expectations and obligations.
2) Contract Negotiation Preparation – This is the most crucial phase. Before entering the negotiation, one must clearly define the goals and objectives and their relative importance to each other.
3) Define your Position –Your position will form the backbone of the proposal or offer you are prepared to make to your negotiating counterpart. A backup position should be formulated prior to you making your proposal, in the event that your counterpart does not deem the initial offer acceptable. Leave yourself room to manoeuvre, to allow yourself and your counterpart flexibility in the contractual negotiation process. Also, ask yourself what your backup position would be, should the negotiation fall apart. What options are available and what is the best possible alternative for you, in case you are unable to reach an agreement?
4) Evaluate the Other Side – Sit back and think about what your prospective contractual partner’s position will be in relation to their expectations, as well as your own. You must also consider what would be of relative importance to them and try to estimate their goals and objectives. Consider what objections or issues they might raise and how you might counter them in a mutually productive manner.
5) Introductory Meeting – Before you make an offer or proposal, be sure that you are both in agreement about the objectives and goals of the contractual agreement you are about to negotiate.
6) Listen – A successfully negotiated contract is not a one-way street, and it is important that you take the time to listen to what your prospective contractual partner has to say. This is not the time to talk, but to listen, and by doing so you will learn what is important to your counterpart.Reaching an agreement will become easier if you pitch your position in a manner that gives yourcounterpart more opportunity to say “Yes”.
7) Concessions – Don’t rush to accept or make concessions. Take your time, and if necessary,put the request for a concession on the back burner. Most importantly, avoid making a concession without ensuring you will receive something of equal or greater value in return. Preparation is important for maneuverablety in a negotiation, as it enables you to cover various scenarios that may occur.
8) Don’t Be Afraid to Say No – A bad agreement can be worse than no agreement at all. If what your prospective partner proposes does not satisfy your own goals and objectives, you must be prepared to say “No”.
9) Confirm Your Prospective Agreement – Once you have made a tentative agreement on the contractual obligations of both parties, you should verify the terms of the pending negotiated contract both verbally and in writing.
10) Expect the Unexpected – Unfortunately, a common negotiation ploy that many negotiators face in contract negotiations is a final demand or additional concession request by the other party– usually, just when you thought the deal was sealed. Again, don’t be afraid to say no, as this is not what you had initially agreed upon. Conversely, this could also be an opportunity to convince them to offer you an additional valuable concession – but only if it is warranted.
