What do you do if your negotiation approach needs to adapt to different contract types?

First understand the nature of Contract, its term, likely business partners, associated risks and company's goal. Based on it, every Contract destination has its own path of negotiation. Contract can be long term, short term, O&M Contract, Capex Contract, Revenue sharing Contract, PPP Contract and many more. So every book has its own index and clauses and every Contract Negotiator needs to be able to differentiate between all of them to align their negotiation strategy.

Exploring the realm of contracts unveils a spectrum of terms, risks, and benefits unique to each type. Take, for example, service agreements, which prioritize performance standards and timelines, or licensing deals, which hinge on intellectual property rights and royalties. Before stepping into negotiations, it's imperative to thoroughly comprehend the intricacies of the specific contract at hand. This involves scrutinizing the fine print, anticipating potential challenges, and pinpointing the elements most critical to your success. Armed with this understanding, you can tailor your negotiation tactics to effectively address the distinctive characteristics of the contract type you're dealing with.

To understand the terms of each type of contract: Read thoroughly and clarify any ambiguities with the employer for employment contracts. Analyse the rental period, costs and obligations of the landlord and tenant for rental agreements. Check delivery deadlines, payment terms and return regulations for supply contracts. Analyse product descriptions, prices and guarantees in purchase contracts. Analyse services, time frames and fees for service contracts. Read carefully, clarify any ambiguities and seek legal advice if necessary.

I completely agree that every contract has its unique features based on its business requirements. An another aspect, we can be categorised the risk involved in the contract like operational risk, financial risk, legal risk, compliance risk. So it could be easily identified the risk involved in the contract.

Craft your negotiation strategy around clear and achievable goals. These goals should align with both the short-term contract terms and your broader business objectives. For service contracts, aim to secure favorable payment terms, while partnership agreements may require defining clear responsibilities. Setting priorities from the outset helps you stay on track and adaptable, especially when negotiations get intricate or heated.

Setting clear goals requires structure: 1. ?? Specific: Define precisely what you want to achieve. 2. ?? Measurable: Make your goals measurable to track progress. 3. ?? Achievable: Set realistic goals. 4. ?? Relevant: Make sure goals align with your plans. 5. ?? Time-bound: Set clear time frames. 6. ?? Communicate: Share your goals to gain support.

Goals must be realistic and vivid in the mind of negotiator in terms of scope, price and other risks. To realize that, analyze the terms and conditions and Offer of Party in detail and prepare your target accordingly inline with your company's MoU target.

Identifying and analysing stakeholders is crucial for the success of a contract: 1. ?? Identification: Record all affected persons and groups. 2. ?? Understand needs: Conduct interviews or surveys to understand their needs. 3. ?? Impact analysis: Evaluate how the contract results could affect them. 4. ?? Prioritisation: Rank stakeholders according to influence and relevance. 5. ?? Communication: Develop a communication strategy to keep them regularly informed and involved.

Stakeholders varies based on the nature of Contract. It is very crucial to delve more, when the public in large becomes stakeholders. For e.g. Concession Agreement entered into between the NOIDA Toll Bridge Company Ltd. and IL&FS Ltd. on 12.11.1997 for development of infrastructure facility of a bridge and an access road on Build-Operate-Transfer (BOT) basis. Refer Supreme Court Case of 2016 between NOIDA Toll Bridge Company Ltd. - Petitioners Versus Federation of NOIDA Residents Welfare Association (Diary No. 36526 of 2016) decided On : 11-11-2016. So based on nature of Contract, stakeholders's risks must be taken into account while negotiating.

Flexibility in negotiations is crucial and offers many advantages: ?? 1) In employment contracts, flexibility enables a good work-life balance and increases productivity. ?? 2. in rental contracts, flexible terms can respond to changing business needs and promote long-term relationships between tenants and landlords. ?? 3. in supply contracts, flexibility enables rapid adaptation to market changes and improved customer satisfaction. ?? 4. in sales contracts, flexible payment terms can lead to more favourable prices. ?? 5. in service contracts, flexibility enables adaptation to the changing needs of customers and the development of long-term partnerships.

Be ready to accept different point of view during strategy preparation and negotiation as well. Targets must also be flexible to accommodate real issues of other side. Focus must on win-win position.

Effective communication is essential but it needs to be strategic more to read the other's mind and play your cards. You don't get what you deserve; you get what you negotiate.