Part IV - Making Your Case:
Protecting Your Contract or Language in Negotiations
There is a misconception that negotiation is about coming to the table with a list of demands, keeping as much information to yourself as possible, and “winning” the scenario. This is a deeply harmful and extremely ineffective way to approach negotiations. Negotiations are something AEC professionals should be more comfortable engaging in because they are inherently collaborative processes reliant on relationship building. Perhaps, for some, where the wheels fall off the wagon is understanding the legal and
financial points that should not be relinquished for the firm. This comes back to the fundamental understanding that: 1. If the negotiations fail – no one wins, not you or the client. 2. Winning work is not the goal – profitability is the goal.
Contract negotiations are not about sending the contract to the client and accepting their red lines, it is about discovering why they redlined and understanding what that means for your team. Most importantly, it’s about being able to explain to the client what you value about that language and why. Being in professional services places the unique burden on our teams that their consultatory relationship with the client starts long before the project – we must be able to explain why we are protecting certain language and make a clear business case for why it should remain. If we never identify to the client when they are being unreasonable, how are they to know? Building Trust and Rapport Openness and honesty foster trust and rapport between negotiating parties. When parties communicate transparently about their needs, interests, and concerns, it establishes a foundation of trust, which is essential for effective negotiations. By sharing information honestly, parties can develop a better understanding of each other’s perspectives and work towards finding mutually agreeable solutions.
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