Question

How are contracts negotiated? Be sure to explore the basics of negotiation.

Answer 1

Introduction
Acknowledgements
Professional Services Agreements: A Primer
Why Have a Written Agreement?
Dealing with Risk
Contract Basics
Types of Agreements You'll Encounter
Professional Association Standard Agreements
How to Review Client-Generated Agreements
Resources for Contract Review
Negotiating a Contract
Deal Makers and Deal Breakers
Contract Clauses
Appendices
Additional Resources
List of Exhibits
Negotiating a Contract
When most people hear the word negotiation, they usually think of large, complicated and official deliberations, such as the formation of a trade agreement or a corporate merger. But if you think about it, negotiation extends to nearly every relationship in your professional life. In addition to the client, you might negotiate with your business unit manager over schedules or needed project resources. Or with your team members about a work deadline. Perhaps you negotiate with subconsultants over fees, scope, design solutions, schedule or coordination issues. You might negotiate with vendors about a quality problem. Or with a public official concerning a code interpretation or permit. And you probably negotiate with contractors over change orders, substitutions, delays, RFIs and quality of work.

In a negotiation, interested parties typically share an overall objective but disagree on some relating issues. A goal of negotiation is to reach a compromise on these differences and arrive at an outcome that is satisfactory to all parties.

When negotiating design contracts, architects and engineers are offering clients a complex, long-term service that requires a great deal of trust and communication. The initial negotiation of the contract sets the stage and the tone for the ongoing, back and forth negotiating that runs throughout the life of a project.

Answer 2

Negotiation involves the coming together of two parties who are interested in something but differ on some aspects of the same. It creates room for compromises where each party does not want to lose out on everything and is therefore ready to do away with some of its terms that may hinder them from reaching an agreement.