Negotiation Skills in Purchasing and Contract

OVERVIEW

In the business world, negotiations have become a common thing. A business transaction is typically preceded by negotiations, then the business will not happen. Negotiation is like a game where the objective is to obtain the best agreement. Winning the business negotiation becomes a good first step for a company. Therefore, in the business world, a negotiator is a valuable asset. Being a negotiator requires experience and flying hours that have been tested. This workshop is designed to provide strong competencies in the methods and strategies that will result in successful negotiations with people in business. With this training, the employee will be given a briefing on the knowledge, skills, and attitudes needed to negotiate effectively to facilitate the duties and functions of each unit.

OBJECTIVES

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

• Know the importance of planning in successful negotiations
• Approaches in Negotiations and standards of ethics in contract construction
• The importance of determining, rating, and valuing the issues in a negotiation
• Evaluating strengths and weaknesses
• Important issues in various contract clauses
• Important elements of the final preparation
• Common negotiation tactics & countermeasures

TARGET PARTICIPANTS

• Projects, Contracts, Purchasing, Contract Administrator
• Operations, Maintenance, Quality & Engineering
• Other company activities expose them or their staff to negotiations with people in the business who want to improve their competency in this critical area of performance.

COURSE CONTENTS

1. The Criticality of Successful Negotiations

• Negotiation Skillsets
• Who Wins Negotiations
• Steps in Negotiation Preparation
• Comparing Approaches in Negotiations
• What gets negotiated?
• Timing as an Issue

2. The Expert Negotiator Defines Many Issues

• Payment terms & Progress Payments
• Transportation issues
• Pricing issues
• Warranties & Spare Parts Issues
• Acceptance terms
• Liquidated damages
• Training

3. Valuing Issues for Both Sides

• Rating & Issue Types
• The total cost of ownership considerations
• Negotiating Contractor Contingencies
• Economic Price Adjustment Clauses
• Standards of ethics in purchasing and contracting conduct
• Assess Strengths & Weaknesses
• Evaluating your position
• The 4 forces of negotiation

4. Defining the Negotiation Objectives

• Determining initial positions
• Negotiation objectives diagram
• Negotiations planning forms
• Impact of Other Influences
• Pre-negotiation Exchanges
• Final Preparation
• Determine strategies

5. Common Negotiation Tactics & Countermeasures

• Ending Deadlocks in Negotiations
• Undermining Techniques
• Delaying Action
• Questioning Tactics
• Negative concessions strategy