2018.03.29 Negotiation Skills v4 · »Poker face: Try to use body language skills »The hip pocket:...

Copyright 2018 The Seller-Doer Academy 1

Negotiation SkillsHow to Test Your Value Proposition

“The Seller Doer Academy for Civil Engineers has met the standards and

requirements of the Registered Continuing Education Program. Credit earned

on completion of this program will be reported to RCEP at RCEP.net. A

certificate of completion will be issued to each participant. As such, it does not

include content that may be deemed or construed to be an approval or

endorsement by the RCEP.”


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Purpose and Learning Objectives

Purpose: The purpose of this module is for you to learn and apply effective negotiation skills that will mutually benefit your client and your firm. In this module, you will learn how to:

» Prepare for contract negotiations,

» Apply different negotiating strategies,

» Use verbal and nonverbal tactics in negotiation, and

» Utilize concessions to your advantage.


References:

Negotiating Engineering and Construction Contracts by William DunningGetting to Yes by Roger Fisher and William Ury

Negotiating a Contract by XL Group

Your

Neg

otia

ting

Skill

Lose/Win Win/Win

Lose/Lose Win/Lose

Negotiating Outcomes

Negotiating Outcomes


12 Ways to Prepare Before Contract Negotiations

1 - Do your technical homework1 - Do your technical homework.


2 - Review the contract.2 – Review the contract.

3 - Define your goals.3 – Define your goals.


4 - Identify and compare interests.

Why do I want that

4 – Identify and compare interests.

5 - Prepare to listen.

A skilled negotiator prepares to listen aswell as to present.

5 – Prepare to listen.


6 - Establish your alternatives and decide on your deal breakers.

6 – Establish your alternatives and deal breakers.

7 - Analyze the other party.7 – Analyze the other party.


8 - Gather supporting data.

9 - Set an agenda.» Scope

» Schedule

» Team

» Risk

» Quality

» Payment Terms

» Fee


10 - Decide on a negotiating team.

- Assess leverage.


12 - Prepare your concessions.

Performing the Negotiation


Exploration and Fact-finding stage

To make sure you understand your opponent’s position, rephrase it and ask if your understanding is correct.

Validate each assumption.

» Questioning

» Probing

» Listening

» Understanding


Bargaining and agreement

1 - Principled NegotiationPrimary objectives of the principled negotiation approach to bargaining are to:

» Separate the people from the problem

» Focus on interests, not positions

» Invent options for mutual gain

» Insist on objective criteria


2 - Constructive BargainingConstructive principles of bargaining include the following:

» Ensure value

» Identify issues

» Trade concessions

» Move at a measured pace

3 - Aggressive BargainingChip-away strategy


Negotiation Tactics and Counter Tactics» “You will have to do better than that”: “Just how much better do I have to

do?”

»Use of time: Do not let the other party know your deadline

»Poker face: Try to use body language skills

»The hip pocket: Use fair and reasonable tactics

»Never jump at the first offer: Be wary

»The Compromiser: State that it is against company’s policy

»The Devil’s Advocate: Understand but don’t agree

Negotiating Change Orders


» Determining liability for changes.

» How change orders are born.

» How to combine all relevant cost, time and liability components.

» How to evaluate and quantify total schedule impact.

Watch for Non-Verbal Communication Strategies


1 - Handshakes

2 - Superior Attitude


3 - Doubt

4 - Evaluation


5 - Silence

Ten Tips for Negotiating Better Outcomes

1. Make it clear that you and the other party are facing the same problem together.

2. Silence is golden.3. Listen actively.4. Constantly ask yourself: “What will cause me to walk away

and am I there yet?”5. Before negotiating, draw up a list of every possible issue.


Ten Tips for Negotiating Better Outcomes

6. Establish an aspiration level and a minimum acceptable price level for each issue.

7. Probe the price – but don’t react to the answer.8. When the other party makes a concession, don’t feel guilty

accepting it. Take it and look for more.9. The longer the negotiations, the better the chance for a win-

win.10.Identify one minor issue on which you will make your last

concession.

In bottom line negotiations - the advantage goes to the person least hurt by walking away.


In line-by-line negotiations - the advantage goes to the person who has superior knowledge.

References:

Negotiating Engineering and Construction Contracts by William DunningGetting to Yes by Roger Fisher and William Ury

Negotiating a Contract by XL Group


Your Homework

Questions

Questions

2018.03.29 Negotiation Skills v4 · »Poker face: Try to use body language skills »The hip pocket:...

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