How can you create a contract negotiation template that meets your organization's unique needs?

1 Identify your objectives

Before you start drafting your contract negotiation template, you need to have a clear idea of what you want to accomplish and what you are willing to compromise on. Think about your priorities, your alternatives, your expectations, and your limits. This will help you define the scope, the terms, and the clauses of your contract. You can also use a SWOT analysis (strengths, weaknesses, opportunities, and threats) to assess your position and your leverage in the negotiation.

2 Research your counterpart

Another important step in creating your contract negotiation template is to research your counterpart and understand their needs, interests, motivations, and concerns. This will help you tailor your communication, your proposals, and your concessions to their preferences and goals. You can also use a stakeholder analysis to identify the key decision-makers, influencers, and gatekeepers on their side and how they might affect the negotiation.

3 Choose a format and a structure

When creating a contract negotiation template, it’s important to ensure that the format and structure are clear and consistent, making it easy to read, understand, and edit. You can use a standard template from your industry or organization, or create your own based on best practices and legal requirements. Your template should include a title page with the names and contact details of the parties, the date, and the subject of the contract; a table of contents with the headings and page numbers of the sections and sub-sections; an introduction that summarizes the purpose, scope, and main terms; a definitions section for any technical terms; a body section outlining each party’s rights, obligations, deliverables, timelines, payment terms, warranties, and performance standards; and a closing section specifying duration, termination, renewal, modification of the contract, dispute resolution procedures, governing law, and signatures.

4 Use clear and concise language

Your contract negotiation template should use clear and concise language that avoids ambiguity, confusion, or misunderstanding. You should avoid jargon, slang, or colloquialisms that might not be familiar to your counterpart or might have different meanings in different contexts. You should also avoid vague or subjective terms that might lead to disputes or disagreements. Instead, you should use precise and objective terms that describe the facts, the figures, and the actions in detail. You should also use active voice, simple sentences, and bullet points to make your template more readable and understandable.

5 Review and revise your template

Before you use your contract negotiation template for your negotiation, you should review and revise it to ensure that it meets your needs and reflects your objectives. You should check for any errors, inconsistencies, or gaps in your template and correct them accordingly. You should also ask for feedback from your colleagues, your managers, or your legal advisors and incorporate their suggestions and recommendations. You should also test your template with a mock negotiation and see how it works in practice and how you can improve it.

6 Adapt your template to each negotiation

Finally, you should remember that your contract negotiation template is not a one-size-fits-all solution, but a flexible and adaptable tool that you can customize and modify according to each negotiation. You should be prepared to adjust your template to suit the specific situation, the parties, the goals, and the risks involved. You should also be open to feedback, suggestions, and changes from your counterpart and negotiate in good faith and with respect. By doing so, you can create a contract negotiation template that meets your organization's unique needs and helps you achieve successful outcomes.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?