Negotiating Contracts Successfully

  • Duration: 2 days

The overall aim of this course is to provide participants with the knowledge, concepts, and skills needed to negotiate in each phase of the contract life cycle successfully in order to maintain a good relationship between the two parties and to reach a win-win outcome.

Participants in this interactive course will learn how to analyze the issues, identify the best practices in negotiating the scope of work, terms and conditions, claims, variation orders, and disputes.

Course Methodology

This course relies on the use of individual and group exercises aimed at helping participants learn all key contract management activities. The course also features the use of a number of case studies, presentations and role-plays by participants followed by discussions. In addition, this course incorporates pre-and post-testing.

Course Objectives

By the end of the course, participants will be able to:

  • Recognize the important role of negotiation in developing a solid contract and the implications of failing to do so
  • Identify fundamental concepts of successful negotiations including problem-solving, communication, and planning techniques that will help in achieving a win-win outcome
  • Plan and conduct several contract-related negotiations in a formal structured manner
  • Outline critical provisions in the scope of work and explore collaborative approaches to secure agreements on these provisions
  • Negotiate contractual claims and change orders in order to avoid disputes and legal issues
  • Discover some of the tactics that are used during contract negotiations

Target Audience

Those involved in the contract and business-related negotiations. The course will also benefit those involved in negotiating the procurement of goods and services, manpower and different types of material or supplies.

Target Competencies

  • Negotiating contracts
  • Contract preparation
  • Handling claims
  • Change management
  • Technical terms and conditions
  • Contract administration

Course Outline

  • Principles of contracts
    • Elements of a contract
    • Purpose of contracting
    • Stages in contract development
    • Contracting plans and strategies
    • Contracting methods
    • When to negotiate and when to tender
  • Negotiating principles
    • Concept of negotiation
    • Secrets of a successful negotiation
    • Best Alternative to a Negotiated Agreement (BATNA)
    • Communicating effectively
    • The negotiating style profile
    • Principled negotiation
      • Separating people from the problem
      • Focusing on interests not positions
      • Inventing options for mutual gains
      • Using objective criteria
    • Characteristics of a skilled negotiator
  • The contract negotiation process
    • Approaches for contract negotiation
    • Negotiation’s structured approach
    • Planning the negotiation
    • Conducting the negotiation
    • Post negotiation actions
  • Negotiating the scope
    • Defining the scope of work
    • Terms and conditions
    • Contract provisions
    • The pricing of the contract
    • Zone of a Possible Agreement (ZOPA)
    • International contracting
  • Post-award negotiation
    • Contract award
    • Contract administration
    • Variation orders and change management
    • Claims and disputes
    • Sources of disputes
    • Methods in lieu of formal proceedings
  • Negotiation strategies and tactics
    • Tactics and counter-tactics
      • Arbitrary deadlines
      • Limited availability
      • Stonewall tactic
    • Breakthrough negotiation: the five steps