Course Objectives:

• The importance of planning in successful negotiations
• Approaches in Negotiations
• Standards of ethics
• How to determine, rate, and value the issues in a negotiation
• Elements of supplier cost structure to assist in negotiations
• Evaluating strengths and weaknesses
• Important issues in various contract clauses
• Important elements of final preparation
• Common negotiation tactics & countermeasures
• Gain experience through the actual negotiation of sample cases

Course Outlines:
 Negotiation

• Why are we here?
• What are negotiations?
• Our responsibilities as Agents
• Exercise: Defining Negotiation Skill sets

Who Wins Negotiations

• Preparation-the critical step?
• The most important thing to remember in negotiations
• Steps in Negotiation Preparation

Comparing Approaches in Negotiations

• Win/lose approach
• What does Win/Win really mean?

What gets negotiated?

• How many issues?
• Determining the issues

Timing as an Issue

• Business cycle
• Market conditions
• Lead-time

Defining Purchasing Issues

• Payment terms
• Transportation issues
• Inventory
• Quantities
• Pricing issues

Contract Issues for:

• Types of contract
• Progress Payments
• Warranties

Defining Contract Issues for

• Acceptance
• Spare parts
• Liquidated damages
• Training

Rating & Issue Types

• Ranking issues
• Determining the 4 types of issues

Valuing Issues for Both Sides

• Understanding elements of supplier cost structure
• Total cost of ownership considerations

Negotiating Contractor Contingencies

• Economic Price Adjustment Clauses
• Price Indexes

Let’s Talk about Ethics

• Standards of ethics in purchasing and contracting conduct
• Sharp practices
• Assess Strengths & Weaknesses
• Evaluating your position
• Analyzing the other Side
• The 4 sets of needs

Defining The Objectives

• Determining initial positions
• Negotiation objectives diagram
• Negotiations planning forms

Impact of other Influences

• Actions of competitors
• Economy

Pre-negotiation Exchanges

• Purpose of pre-negotiation exchanges
• Preparing the team for pre-negotiation exchanges

Final Preparation

• Team or individual negotiations
• How to handle the issue of authority
• Determine strategies
• Where and when
• Planning the agenda
• Role play and role play

Tips for the actual Negotiation

• 18 important negotiation points to remember
• Ending Deadlocks in negotiations

Common Negotiation Tactics & Countermeasures

• Undermining
• Delaying Action
• Questioning
• Negative concessions
• The “if” Statement
• Comparative Options
• Funny Money

Post review and analysis

• Document results
• Analysis against objectives

Model Negotiations

• Participants will negotiate model cases and discussing the results to provide an opportunity to put into practice the topics covered earlier.

Who Can Benefit?

• Managers and professionals involved in projects.
• contracts, purchasing, operations, maintenance.
• engineering.

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