Advanced Contract Negotiation
This is an advanced level training course for oil and gas industry executives and professionals from other industries who are on the leading/cutting edge of management, commerce and technology.
When negotiating, suppliers may mention how they are different than their competitors and, therefore, better for you. They often base their difference on common problems that buyers encounter with other suppliers.
In sales, that technique is called differentiation. You can use a variation of this technique when negotiating with suppliers. In purchasing it is called "reverse differentiation."
In using the reverse differentiation negotiation technique, you identify common problems that suppliers have with other customers. Then, when negotiations are at an impasse, you appeal to their emotions by showing how working with your company isn't as painful as working with some of their other customers.
The key is that your point(s) of differentiation must be true. If your organization has one or more of the following characteristics, you will be different than most of your suppliers' customers and can use these characteristics to "sell" your supplier on the benefit of giving you a better deal in order to earn your business.
Who Should Attend
Professionals such as but not limited to:
• Oil and Gas Industry executives and other professionals
• Contract Managers/Contract Analysts
• Project/Programme Managers
• Engineering/Maintenance Managers
• Facilities Managers
• Procurement Managers
• Financial Officers
• Portfolio and Commercial Managers
After participating in our advanced, dynamic and interesting training course, you will be able to:-
• UNDERSTAND the essential features to negotiate effectively and deliver a fit for purpose contract.
• GAIN an understanding of key performance benchmarks, obligations and exceptions to protect your organisation against unnecessary dispute.
• MASTER your risk identification, allocation and sharing to manage your exposure.
• UNDERSTAND how to produce a professional contract and build successful partnerships.
• ACQUIRE tips and tactics for advanced contract negotiation to ensure a successful outcome.
• EVALUATE common termination, dispute resolution/arbitration tactics to know what to do if things go wrong.
• LEARN how to avoid pitfalls and become a successful contract negotiator.
• APPLY Total/True Cost of Ownership (TOC) principles to your advantage
Why you cannot miss this event
You cannot miss this training course and be left behind because if you do, you will miss out on 6-figure cost savings/gains. Such significant savings/gains would result from highly successful and effective negotiation skills and learning how to play the following points to your advantage and capitalise on:
Quick decision making - Some organizations take weeks or months to negotiate and make a purchase decision, have it approved, and place an order. If your company moves on its decisions quickly, stating how you can help your suppliers have shorter "sales cycles" can persuade them to offer better deals when negotiating.
Prompt paying - Some organizations take 45, 60, or more days to pay their invoices, which is costly to their suppliers. If your organization pays promptly, you can use that fact to your advantage when negotiating.
Evangelistic - Supplier marketing is more effective when their materials contain customer testimonials. But many companies do not permit their staff to offer testimonials. If your organization willingly provides testimonials, you can demonstrate that your value as a customer is higher and that the supplier giving you a better deal would be well worth it.
Low maintenance cost - Some customers whittle away at supplier profits by demanding more attention than other customers in the form of requesting special procedures, customizations, or other unique attention. If you are not a "high maintenance customer," you can mention this when negotiating to give the supplier assurance that a thinner profit margin won't be eaten away by forcing the supplier to respond to special requests.
Continuing Professional Development
21 HOURS CPD
Sessions 1 and 2: Preparation to negotiate
– Closing the gap between the parties to get a ‘win-win’ outcome and to ‘close the deal’
– Preparation of what alternatives / variables exist and can be offered as a follow-up to the initial offer, if the customer rejects the initial offer or proposes a counter-offer
– Follow-through of logic / justification of why your initial offer or counter-offer is a ‘win-win’ and preferable to the customer’s best realistic alternative
- Settlement zones exercise using sample contract provided by client
Session 3 and 4: Different negotiation styles
Advanced negotiation styles:
- Matching style to bargaining position
- Co-operative vs. competitive negotiation styles:
- Styles reflecting the type of on-going relationship, long-term or short-term
- Individual questionnaire identifying each delegate’s default negotiation style
Session 5: Best practice
Advanced/Professional negotiation structure:
- Power of attorney / establishing authority of individuals
- Keeping the negotiation open and ‘subject to contract’
- Purpose of ‘heads of agreement’
- Establishing the confidentiality of negotiation
- Opening the negotiation
- Moving forward
- Clarity and summarising minutes
Sessions 6 and 7: Advanced negotiation tactics
Listening, understanding and interpretation of dialogue:
– Absorbing new information received and reflecting it within offers and counter-offers proposed
- Asking the correct-probing questions
- Answering questions and avoidance tactics
- Reducing aspirations of your opposite party
- Body language and non-verbal communication
- Interpersonal skills and professionalism
- Counter disruptive tactics
- Challenging the other party in a non-aggressive manner
- Respecting the other party; ensuring they do not lose face
- Use of silence as a tactic
- Deadlock and resolution
Session 8: Case study
Negotiation exercise using a sample contract
Sessions 9 and 10: Highly advanced negotiation skills
Cognitive-Synergy™ (CS) and Neuro-Linguistic Programming (NLP) techniques for successful contract negotiation outcome:
- What is CS?
- Why is CS very important to successful/effective contract negotiation?
- What is NLP?
- Why is NLP very important to successful/effective contract negotiation?
- How to apply CS successfully
- How to apply NLP successfully
- CS and NLP working together – a winning combination
Sessions 11 and 12: Total / True Cost of Ownership (TOC)
The central part of TOC in successful/professional contract negotiation:
- What is TOC?
- How to calculate TOC?
- Why is TOC so critical to successful contract negotiation outcome?
- Comparison between a contract with TOC taken into account and a contract with TOC not taken fully into account
- How to ensure you remember to include TOC as integral part of your contract negotiation and use it to your advantage
- How to successfully define the scope of what’s include and what’s excluded in TOC?
Sessions 13: The Equator Principle (EP) in advanced contract negotiation
The EP inclusion in contract clauses, terms and conditions
- What is the Equator principle?
- What’s the relevance of the EP to successful contract formulation and agreement?
- The EP inclusion in large/complex projects
- The EP inclusion in smaller simpler/smaller supply contracts
- The EP principle in negotiating financial support/raising capital
- The EP in relation to other financial deals
- Where and how the EP should be included in a contract?
Session 14: Advance Risk Assessment and Mitigation (RAM)
The RAM matrix applied to contracts
- Technical risks
- Commercial risks
- Other risks
- RAM analysis
- Strengths Weaknesses Opportunities Threats (SWOT)
- RAM and SWOT applications
- RAM inclusion in contract formulation and agreement
Session 15: Commercial/Legal issues in advanced contract negotiation
Warranties and guarantees, including third parties and contractors
- Key performance indicators and how to measure them
- Specifications and equipment guarantees
- Contract liability and penalty clauses
- Liquidated damages (non-performance)
- Claims and dispute resolution procedure
- Unique/Advanced aspects of contract insurance
- Agreement of policy type, clauses and cost
- Excess, hold-harmless, and other qualifications
- Contract insurance exclusion clauses
- Contractual and public liabilities
- Litigation and/or arbitration contract clauses
Session 16: Case study
Negotiation exercise using a sample contract
London, United Kingdom
14-16 February 2018
Dubai, United Arab Emirates
18-20 March 2018
Houston, Texas, United States
9-11 May 2018