Negotiation Skills. Copyright 2018 The Seller-Doer Academy 1. How to Test Your Value Proposition
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1 Negotiation Skills How 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. Copyright 2018 The Seller-Doer Academy 1
2 Copyright Materials COPYRIGHT MATERIALS This educational activity is protected by U.S. and international copyright laws. Reproduction, distribution, display, and use of the educational activity without written permission of the presenter is prohibited. The Seller Doer Academy 2018 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. Copyright 2018 The Seller-Doer Academy 2
3 References: Getting to Yes by Roger Fisher and William Ury Negotiating Engineering and Construction Contracts by William Dunning Negotiating a Contract by XL Group Negotiating Outcomes Lose/Win Win/Win Your Negotiating Skill Lose/Lose Win/Lose Negotiating Outcomes Copyright 2018 The Seller-Doer Academy 3
4 12 Ways to Prepare Before Contract Negotiations 1 - Do your technical homework 1 - Do your technical homework. Copyright 2018 The Seller-Doer Academy 4
5 2 - Review the contract. 2 Review the contract Define Define your goals. your goals. Copyright 2018 The Seller-Doer Academy 5
6 - Identify and compare interests. 4 Identify and compare interests. Why do I want that 5 - Prepare to listen. 5 Prepare to listen. A skilled negotiator prepares to listen as well as to present. Copyright 2018 The Seller-Doer Academy 6
7 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. Copyright 2018 The Seller-Doer Academy 7
8 8 - Gather supporting data. 9 - Set an agenda.» Scope» Schedule» Team» Risk» Quality» Payment Terms» Fee Copyright 2018 The Seller-Doer Academy 8
9 10 - Decide on a negotiating team. - Assess leverage. Copyright 2018 The Seller-Doer Academy 9
10 12 - Prepare your concessions. Performing the Negotiation Copyright 2018 The Seller-Doer Academy 10
11 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 Copyright 2018 The Seller-Doer Academy 11
12 Bargaining and agreement 1 - Principled Negotiation Primary 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 Copyright 2018 The Seller-Doer Academy 12
13 2 - Constructive Bargaining Constructive principles of bargaining include the following:» Ensure value» Identify issues» Trade concessions» Move at a measured pace 3 - Aggressive Bargaining Chip-away strategy Copyright 2018 The Seller-Doer Academy 13
14 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 Copyright 2018 The Seller-Doer Academy 14
15 » 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 Copyright 2018 The Seller-Doer Academy 15
16 1 - Handshakes 2 - Superior Attitude Copyright 2018 The Seller-Doer Academy 16
17 3 - Doubt 4 - Evaluation Copyright 2018 The Seller-Doer Academy 17
18 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. Copyright 2018 The Seller-Doer Academy 18
19 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 winwin. 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. Copyright 2018 The Seller-Doer Academy 19
20 In line-by-line negotiations - the advantage goes to the person who has superior knowledge. References: Getting to Yes by Roger Fisher and William Ury Negotiating Engineering and Construction Contracts by William Dunning Negotiating a Contract by XL Group Copyright 2018 The Seller-Doer Academy 20
21 Your Homework Questions Questions Copyright 2018 The Seller-Doer Academy 21
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