Procurement Negotiation

In procurement negotiation, both parties come to an agreement regarding the contract terms. Negotiation skills are put into practice here as the details of the contract are ironed out between the parties. At a minimum, contract language should include price, responsibilities, regulations or laws that apply, and the overall approach to the project.

The complexity of the contract will determine how extensive the contract negotiations will be. Simple contracts may have predetermined, nonnegotiable elements that only require seller acceptance. Complex contracts may include any number of elements, including financing options, overall schedule, proprietary rights, service level agreements, technical aspects, and more. In either case, once agreement is reached and the negotiations are finished, the contract is signed by both buyer and seller and is executed.

You might see the term fait accompli show up on the exam. Fait accompli tactics are used during contract negotiation when one party tries to convince the other party discussing a particular contract item that it is no longer an issue. It can be a distraction technique, when the party practicing fait accompli tactics is purposely trying to keep from negotiating an issue and claims the issue cannot be changed. For example, during negotiations the vendor tells you that the key resource they're assigning to your project must start immediately or you'll lose that resource and they'll get assigned work elsewhere. However, you don't know—because the vendor didn't tell you—that the vendor can reserve this resource for your project and hold them until the start date. In this instance, they used fait accompli tactics to push you into starting the project, or hiring this resource, sooner than you would have otherwise.

The literal translation of fait accompli into English is fact realized or accomplished. And this tactic does not always produce a negative result. For example, when then President Elect Obama was running for the White House, he promised his daughters that if he won the election, they could get a dog. Once he won the election, getting a dog was no longer in question; it became a fact realized or a done deal you might say.

Negotiating Essentials

Negotiating Essentials

Always wanted to get a better deal but didn't have the needed negotiation skills? Here are some of the best negotiation theories. The ability to negotiate is a skill which everyone should have. With the ability to negotiate you can take charge of your life, your finances and your destiny. If you feel that others are simply born with the skill to negotiate, you should know that everyone can learn this wonderful skill.

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