Some sections of your contract require calls or meetings to negotiate them since they're more complex or carry higher stakes than basic redlining. Know your desired outcomes and prepare well for any negotiation. Also, be mindful that any concessions you make in a contract set precedent for future work with that client. If you offer concessions, make it clear that they're one-time discounts and clearly specify your list prices.
- Some sections of your contract will require calls or meetings to negotiate them since they're more complex or they carry higher stakes. Basically redlining won't cover those situations. Meet in person or have a call to discuss these issues. Know your desired outcomes and prepare well for any negotiation. That will help you stay focused on the most important points and concede ones that don't matter. Be mindful that any concession you make in a contract sets precedent for future work with that client.
If you offer concessions, make it clear that they're one-time discounts, and clearly specify your list price. At Thought Leaders, when we offer a discount, we write in the contract that this is a one-time pilot course discount, or a one-time new client discount. We need them to know this is an exception. When negotiating points get contentious, step away from the discussion to regain perspective. Look at the point in the broader context of the contract.
One time I was negotiating a contract and it got pretty heated over this one point. I was getting pretty frustrated. I stepped away from it and said, "What is this really worth?" It was 500 bucks a year. I immediately conceded the point and moved forward with the negotiation. You may run into instances when a client doesn't like a clause that would hold them responsible if they do something wrong. You might hear them say, "Well we would never do that, "so it doesn't need to be included in the contract." If you don't include it and they do do something wrong, you have no recourse.
My response in those situations has always been, "Well, if you would never do it, "then you should have no problem including it "in the contract because that provision "Will never come into play." There's pretty much no argument they can make at that point, and I get the clause included. If the contract feels unfair to either party, it's not a basis for a good relationship. The end result of a good negotiation is a contract both parties can live with and that enables a productive, long-term relationship to thrive.
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- Identify effective consulting contracting techniques.
- Explain how to evaluate an attorney for legal counsel.
- Compare and contrast different types of major contracts.
- List the major players in a contracting process.
- Define payment terms.
- Define warranties and liability.
- Scope a consulting engagement.
- Describe how to negotiate major contract points.