CONTRACT NEGOTIATIONS

Contract Negotiations: With years of experience of doing contract and vendor negotiations from both sides (supplier and customer) we are uniquely qualified to add substantial value in this area, leading to reduced contract negotiation time (and corresponding cost savings).

Contract negotiations can be extremely stressful and cost/time consuming. A key skill is to know which buttons to push and when to negotiate hard, and equally when to back off. Organisations do not have to win ALL the arguments, just the ones that count the MOST. Experience and depth of knowledge is irreplaceable in these situations. Again, the objective is to secure an advantageous outcome for the enterprise without damaging the supplier or vendor so that they are forced into unnatural behaviour to achieve an acceptable business outcome.

Some strategies for planning successful contract negotiations should include -

  • Ranking one's business priorities along with alternatives
  • knowing the difference between what one NEEDS and what one WANTS
  • Knowing one's bottom line so you know when to walk away
  • Defining upfront any time constraints and benchmarks
  • Assessing potential liabilities and risks
  • Introducing and catering for high priority items like - Confidentiality, non-compete, non-solicitation, dispute resolution, or changes in requirements
  • Ensuring there are mechanisms and checks for "Doing the Same for Your Vendor (i.e. Walk a Mile in Their Shoes)"
  • Allowing time for adequate and professional preparation – this is a vital aspect
    • It is best summed up by the age-old saying of "Failing to plan, is planning to fail"

To find out how we can help you achieve favourable outcomes with your strategic vendors or suppliers, book an appointment here.