How can you negotiate contracts without making common mistakes?

1 Know your goals and priorities

Before you enter a contract negotiation, you should have a clear idea of what you want to achieve and what you are willing to compromise on. You should also know your alternatives and your walk-away point. This will help you set realistic expectations, avoid unnecessary concessions, and communicate your value proposition effectively. You should also research the other party's goals and priorities, so you can understand their perspective and find common ground.

2 Prepare and practice

Preparation and practice are key to successful contract negotiation. You should review the contract documents carefully, identify any potential issues or risks, and prepare your arguments and evidence. You should also anticipate the other party's objections and questions, and rehearse your responses and counteroffers. You can also practice with a colleague or a mentor, and get feedback on your negotiation style and strategy. This will help you improve your confidence, clarity, and credibility.

3 Build rapport and trust

Contract negotiation is not only about the terms and conditions, but also about the relationship and trust between the parties. You should try to build rapport and trust with the other party, by being respectful, courteous, and professional. You should also listen actively, ask open-ended questions, and acknowledge their concerns and interests. You should avoid being aggressive, defensive, or emotional, as this can damage the trust and cooperation. You should also be honest, transparent, and consistent, and avoid making false or unrealistic promises.

4 Be flexible and creative

Contract negotiation is not a zero-sum game, where one party wins and the other loses. You should aim for a win-win outcome, where both parties benefit from the agreement. To achieve this, you should be flexible and creative, and look for ways to create value and solve problems. You should also be willing to make trade-offs and concessions, as long as they are aligned with your goals and priorities. You should also explore different options and scenarios, and avoid getting stuck on a single issue or solution.

5 Document and confirm

One of the most common mistakes in contract negotiation is not documenting and confirming the details and outcomes of the negotiation. You should always document and confirm the key points, agreements, and action items of each negotiation session, and send them to the other party for verification. You should also review the final contract draft carefully, and make sure it reflects the negotiated terms and conditions. You should also seek legal advice if you are unsure or unclear about any aspect of the contract.

6 Follow up and deliver

The contract negotiation does not end with the signing of the contract. You should also follow up and deliver on your commitments and obligations, and monitor the performance and satisfaction of the other party. You should also maintain regular communication and feedback, and address any issues or disputes promptly and professionally. You should also seek opportunities to improve and strengthen the relationship and trust, and prepare for future negotiations.

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?