Contract Negotiations
Main Aim(s) of the Unit:
This unit will consider the contract negotiation process from a wide perspective and will concentrate on the events leading up to the actual meeting or series of meetings as well as the subsequent events involving the implementation of the agreement. Good preparation and planning are key elements of a successful negotiation and these will be explored together with getting the best out of the meeting itself by understanding and enhancing relationships between the parties involved.
Main Topics of Study:
Legal foundation for negotiations
- Agreement of the parties
- Disclosure of information
- Unfair contracts and clauses
- Bargaining power
- Legal assistance
Internal factors
- Organisational issues
- Negotiation planning
- Reserve position and fall-back plans
- Managing the process
- Selecting negotiators
Negotiation principles
- Single or team negotiations
- Rules for the lead and support negotiator
- Planning and preparation
- Negotiation strategy & tactics
The complete process
- Managing the relationship
- Supporting documentation and evidence
- Defensive measures
- Corporate relationships
- Self preparation
- Feedback
- Win-Win
- Transactional analysis
- Closing the gap
The negotiation
- Location and timing of the negotiation
- Negotiation techniques
- Agenda setting
- Single and series meetings
- Human interaction
- Body language
- Listening & Questioning skills
Post negotiation activities
- Summarise
- Checking the relationship
- Agreeing future actions
- Confirming the agreement
- Dealing with disagreements
- Debriefing
- Exploiting the agreement
Content of a contract negotiation
- General principles
- Contract requirement
- Price
- Payment
- Delivery
- Terms & conditions
- Intellectual property rights
- Warranties
- Risks & liabilities
Negotiating variations
- Source of post-contract issues
- Variations
- Claims
- Disputes
- Mediation
- Conciliation & arbitration
Learning Outcomes for the Unit
At the end of this Unit, students will be able to:
- Identify the legal foundations of the negotiation including the resulting contractual obligations
- Describe the various components of the negotiation process from planning to implementation
- Identify key players and their roles in the process.
- Understand the required documentation and evidence for successful conclusion of the process
- Use a variety of relationship techniques to get the best out of the whole process
- Analyse the results of a contract negotiation including the various agreements reached
- Be aware of the pitfalls of poor preparation in relation to post-negotiation and contract phase.
The numbers in the boxes below show which of the above module learning outcomes are related to particular cognitive and key skills.
| Knowledge & Understanding | 1,2,3,4 |
| Analysis | 6,7 |
| Synthesis/Creativity | 5,7 |
| Evaluation | 5,6,7 |
| Interactive & Group Skills | 5 |
| Self-appraisal/ Reflection on Practice | - |
| Planning and Management of Learning | - |
| Problem Solving | 5,6 |
| Communication & Presentation | 2,5,7 |
| Other skills (please specify): | - |
Learning and teaching methods/strategies used to enable the achievement of learning outcomes:
Learning takes place on a number of levels through lectures, class discussion including problem review and analysis. Formal lectures provide a foundation of information on which the student builds through directed learning and self managed learning outside of the class. The students are actively encouraged to form study groups to discuss course material which fosters a greater depth learning experience.
Assessment methods which enable student to demonstrate the learning outcomes for the Unit:
Examination: 3 hours duration 100%
Indicative Reading for this Unit:
Main Text:
Successful Contract Negotiation – Tim Boyce (Hawksmere)
Alternative Texts and Further Reading:
The Commercial Manager – T. Boyce & C. Lake (ICM)
Successful Negotiation in the New Contract – Andrew Dearden (Butterworth-Heinemann)
The Art & Science of Negotiation – Howard Raiffa (Harvard University Press)
Guideline for Teaching and Learning Time (10 hrs per credit)
50 hours Lectures / Seminars / Tutorials / Workshops.
Tutorial support includes feedback on assignments and may vary by college according to local needs and wishes.
50 hours Directed learning.
Advance reading and preparation / Class preparation / Background reading /Group study / Portfolio / Diary etc
100 hours Self managed learning.
Working through the course text and completing assignments as required will take up the bulk of the learning time. In addition students are expected to engage with the tutor and other students and to undertake further reading using the web and/or libraries.
