CONTRACT NEGOTIATIONS LANDON HILL NOVEMBER 2018 LANDON HILL
CONTRACT NEGOTIATIONS LANDON HILL NOVEMBER 2018
LANDON HILL Procurement Manager. NCMA Fellow. CMLDP Alum. Father. Husband. Decent Cook. Sports Coach. Busy all the time. Love it.
AGENDA What Is Negotiations Or Negotiating? Negotiation Process & Tips Building The Relationship Don’t Just Accept
WHAT EXACTLY IS NEGOTIATING? Discussions or activities aimed at reaching an agreement
WHAT EXACTLY IS NEGOTIATING? FAR Part 15: Contracting by Negotiations A contract awarded using other than sealed bidding procedures is a negotiated contract
WHAT EXACTLY IS NEGOTIATING? The Negotiation ‘Game’
WHAT EXACTLY IS NEGOTIATING?
THE NEGOTIATION PROCESS – 4 PHASES Preparatio n Info Exchange Bargaining Negotiation Agreement
PREPARATION
PREPARATION 1. Make sure you’re in a negotiation situation 2. Clarify your aims 3. Gather information 4. Negotiate with your own side 5. Set a BATNA 6. Prepare the setting 7. Prepare yourself mentally
INFORMATION EXCHANGE Begin to engage the other side Share information Explore options
INFORMATION EXCHANGE Focus on building the relationship Trustworthiness Competency Likeability Alignment of interest
BARGAINING Give and take – moving closer towards a resolution • Presenting the offer • Making concessions • Moving towards a solution • Summarizing progress
BARGAINING - TIPS Listen and remain open to ideas Don’t feel pressured to agree on each issue Saying “I understand” is better than “I agree” Never make two offers in a row Don’t let emotions overrule sound business logic Pause, re-group, seek advice Be patient - conceding takes very little time
AGREEMENT
THE NEGOTIATION PROCESS – 4 PHASES Preparatio n Info Exchange Bargaining Agreement
DON’T JUST ACCEPT Buyers Sellers “If it’s not applicable then it’s self deleting”
- Slides: 19