Phases of the Negotiation Process you probably need to know
If you sit down and evaluate your negotiation preparation, explicit patterns should start to appear. It’s like putting a jigsaw puzzle. Without intentionally being aware, Majority of us understand that we are moving toward negotiations conflictingly. There are numerous phases of Contract Negotiation Process, which are all essential to know before you enter into a contract with another party. Before entering the negotiation stage, you’ll need to prepare yourself and your business so that you are all aware of what is required to suitably negotiate the best results for your business.
· Pre-Negotiation: Before the actual negotiation starts, the parties need to prepare. This is when pre-negotiation been practised. The primary stage in a negotiation relates to planning and preparation. It is the stage where the parties choose what they need, what are their minimum expectations, how much they will yield and how they will approach the negotiations.
· Exchanging Information: This stage will include the negotiation of information. You’ll need to impart data to the other party, comprising of your business’ interests and targets. You’ll need to recognize what you hope to gain from the business deal. The more data you share with the other party, the simpler it will be for that party to completely understand what you are searching for.
· Bargaining This stage includes working with the other party to settle on what you both want. This stage will require two things — compromising and vision. You’ll have to identify with the other party, as you can’t hope to have all that you need in the contract. Moreover, along with compromise comes imagination. If the other party takes an entirely different stand regarding what they want in the contract, you’ll be creative and propose more choices for what to include in the contract.
· Closing: After you have settled on all essential items that will be included in the contract, you can end the negotiation stage by repeating what was discussed in the initial phases. Allow the other party to raise any potential worries that they may have with regarding the deal. Moreover, if you have any worries, address them during this stage. When you have gone to an official agreement, you can draft the actual contract.
· Follow-up: The follow-up procedure will occur after the contract is drafted and signed by both parties. Despite the fact that the contract is currently legally obliged and the project is in progress, you’ll despite everything need to catch up with the other party all through the projects to assure that the task is running easily. Moreover, you’ll need to relieve the risk of any unforeseen conditions emerge.
Effective contract negotiation plays a prominent role in the procurement cycle. At Aeren LPO, we will work intimately with your procurement team to assure a mutually beneficial result for you and your suppliers. Our first-class procurement and Contract Negotiation Process will assist you to overcome the problems that can stand in the way of a fruitful and mutually valuable negotiation.