Section 5 Strategies and skills of international business contract negotiations

5.1 Requirements for contract negotiators

 Successful contract negotiator must:

 1. Master the art and science, or soft and hard skills, required to become a master negotiator.

 2. Possess the intellectual ability to comprehend factors shaping and characterizing the negotiation.

 3. Be able to adapt strategies, tactics, and counter-tactics in a dynamic environment.

 4. Understand their personalities and personal ethics and values.

 5. Know their products and services, desired terms and conditions, and pricing strategy.

 6. Be able to lead a diverse multifunctional team to achieve a successful outcome.

5.2 Strategies for contract negotiations

5.2.1 Make a list of the rank of your priorities along with alternatives

5.2.2 Know the difference between what you need and what you want

5.2.3 Know your bottom line and then you know when to walk away

5.2.4 Define any time constraints and benchmarks

5.2.5 Assess potential liabilities and risks

5.2.6 Confidentiality, non-compete, dispute resolution, changes in requirements

5.2.7 Do the same for your vendor

5.3 Skills of business contract negotiations

5.3.1 Identify your objectives for entering into the contract

5.3.2 Research contract laws in your area

5.3.3 Prepare for the negotiation

5.3.4 Build trust with those you are negotiating with

5.3.5 Approach the negotiation with a positive attitude