Contract Negotiations

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ContractNegotiations

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ContractNegotiations

Contractsin the business world have become an inevitable thing. In a simpledefinition, contract negotiation is referred to as the process thatis undertaken by two parties when they are making an agreement.According to Drahozal&amp Rutledge (2011),in business one does not get what he wants, but rather what henegotiates for. However, when making a contract or the process ofcontract negotiation entails a demand for considerable knowledge,experience and training of the parties involved in the negotiations.Trained negotiators have a solid set of knowledge and skills thatoften enable them to garner a more favorable contract for theirparty. This paper addresses an aspect of contract negotiation, skillsneeded and what makes a good contract, and contract negotiator.

Areasof Knowledge, Key to a Successful Contract Negotiator

Theprocess of contract negotiation is an involving one, and in order toget the best from a contract, the negotiating parties ought topossess different knowledge. For one to be regarded a successfulcontract negotiator, he/she ought to have knowledge in some areasregarding the making of a contract. The more the knowledgeable one ison the issue in question, the greater the chances of getting the bestfrom the negotiation. One of the key knowledge for a successfulnegotiator is a clear understanding of components of a validcontract. This helps towards the making the best of contract interms. Another area of knowledge is the mathematics and economics,which enables the negotiator to way out the economic consequences ofthe contract as well as the mathematical interpretation of the gainsexpected. In addition, the negotiator is supposed to be knowledgeableon institutional issues. This helps in understanding the key elementsor the basis of the negotiation. This helps the negotiator to addresshis subject’s demands as well as maintain the contract within legalboundaries. Other areas of knowledge include law and government,education and training, customer and personal service, clerical,language (English), and also a personal/human resource.

SkillsCritical to the Success of a Contract Negotiator

Inaddition, key knowledge towards a successful contract negotiation,there is also essential. Some of the important skills includespeaking, which enables one to talk to others involved in thecontract making. One should also be an active listener, criticalthinker, as well as a good judge and decision maker. More so, onesupposed to an effective communicator hence should possess goodcommunication skills. Should also be confidence, reliability,collaborator and team worker, and finally should be less emotional(Garrett,2005).However, the skills may vary from one person/negotiator to another aswell as depending as to what type of contract is being negotiated.Nevertheless, some skills are a universe for the negotiators such asbeing an effective communicator, listener, and critical thinker.

EffectiveStrategy for an Effective Negotiator

Contractnegotiator is known as a communicator between two parties. This, inturn, calls for the use of the best strategy in order to achieve thebest. There are different negotiating styles or strategies that anegotiator can use depending on the desired outcome and itsapplicability. Each negotiator strategy has its merits and demerit,and it is always for a negotiator to be tactical in the style theyuse (Garrett,2005).One effective strategy is the ‘Collaborating Strategy’. With theuse of the collaborative strategy, the negotiator ensures that bothparties’ demands are met. The strategy entails the process ofbrainstorming between the negotiating parties, on how to come up witha mutual value and how to establish a common or joining solution.Through the collaborating strategy, the negotiator and the partiesinvolved is focused on value creation and is detailed with partieswho prefers principled negotiations format (Ariñoet al, 2014).

Throughthe strategy, the negotiator expands the pie and focuses towards anagreement which will maximize returns for everyone. One of thestrongest aspects of this negotiating strategy is that it helps inidentifying and forming strong bonds between the parties involved inthe negotiation process (Drahozal&amp Rutledge, 2011).More so, it helps towards the establishment of good relationshipsbetween the parties. However, some of the downsides relating to thecollaborating strategy are that it is exhausting mentally in additionto being time-consuming as the parties take the time to come to acommon ground. More so, for a negotiator to apply the strategy, itrequires him/her to be well and extra prepared. On the other hand,the strategy isn’t a good one when the parties involved are in acompeting scenario (Goering,1997).Finally, the negotiator is supposed to be keen on how muchinformation is given by the parties this would in turn help towardshim/her being cautious to avoid being taken advantage for by theparties.

Inconclusion, the making of a successful negotiation is an allinvolving undertaking. Key skills and knowledge are essential for oneto become an effective negotiator. Law and government, as well asmathematical knowledge, are some essential tools that an effectivenegotiator ought to possess. In addition, the negotiator should be aneffective communicator, listener and a critical thinker among anotherhost of skills. With the availability of varying strategies forcontract negotiations, contract negotiation remains a key element inthe business today.

References

Ariño,A., Reuer, J. J., Mayer, K. J., &amp Jané, J. (2014). Contracts,Negotiation, and Learning: An Examination of TerminationProvisions.&nbspJournalOf Management Studies,&nbsp51(3),379-405.

Drahozal,C. R., &amp Rutledge, P. B. (2011). Contract AndProcedure.&nbspMarquetteLaw Review,&nbsp94(4),1103-1171.

Garrett,G. A. (2005).&nbspContractnegotiations: Skills, tools, and best practices.Chicago, Ill: CCH.

Goering,E. M. (1997). Integration Versus Distribution in ContractNegotiations: An Interaction Analysis of Strategy Use.&nbspJournalOf Business Communication,&nbsp34(4),383-400.