Negotiation
Negotiation is an effort by two or more parties to achieve a negotiated understanding with a shared goal regarding a certain issue. A facilitator controls and consolidates the views of all sides throughout the communication process. This method is used by the federal government and other organizations to choose the appropriate contractor from a selection of possible service providers (Boyce, 2002).
Convergence of Ideas
Convergence of ideas is addressed after a thorough assessment of the party's suitability to provide the necessary services. Notably, neither side is permitted to enforce or dictate rules on the other. It is essentially a casual dialogue that takes place in a conducive atmosphere. Contracts are won on competitive basis where people are allowed to submit tenders. When selected for the task, a process of discussing for prices follows. Possessing important traits that would foster smooth discussion with the government representative ascertain success.
Right Behaviour in Negotiating a Contract
The choice of the contractor is based on the lowest bidder. Understanding the skills to employ when interacting with the government representative would greatly command attention. One of the trait that can be embraced is persuasion. According to Boyce (2002), this is an attribute which evokes respect. As a contractor, the articulation and choice of right words have an impact on the other party. The major idea to enter into discussion with the project owner is to convince him or her on capability to deliver quality work. It is therefore advisable to conduct background research on the best way to represent the organization. Additionally, honesty is core. Securing trust is vital in any contractual agreement (Saxon, 2009). Instances where lies are detected could lead to disqualification. Good negotiators disclose true information securing a satisfactory outcome. This is important to gauge the costing of the entire project. Failure to give true information might harm the provider through lower quotations. Conversely, the government could end up spending more than the required amount due to misinformation concerning the products. Besides, fostering cooperation while negotiating is needed. Proper listening accompanied by good communication skills play a crucial role in establishing business mood (Tuller, 2010). Both parties are mandated to tolerate each other and find amicable ways to arrive at final decision.
Differences between Negotiating Contract with Federal Government and Personal Negotiation
Contracts differ depending with the offerer. The process used by the government to choose a contractor varies from what the individual business does. A company choosing to do business with the government should understand considerable requirements needed. Federal government has certain authorities and rights which lacks from commercial enterprises. Federal government purchases are controlled by Federal Acquisition Regulation (FAR) while personal negotiation is controlled by Uniform Commercial Code (Boyce, 2002). The two are different in their operations and regulations guiding every party. One striking element of FAR is that it advocate for fairness and transparency. All citizens are given equal chance to secure the contract. It is therefore based on equity and chances of restructuring the laid down procedures are minimal (Saxon, 2009). The contractor is supposed to follow the stipulated conditions or leave. On the other hand, personal negotiations can be manipulated to fit the agreement between the two parties. The company can change the terms developed over time, to suit the requirement of the contractor.
Furthermore, federal government can make unilateral changes while the work is in progress. Changes can be imposed without considering the financial investment that the contractor could have used in the process. Before taking any work with the government, the entities entrusted with the work are made aware of possible restructuring (Boyce, 2002). Diversion of initial agreement happens due to various reasons such as change of plan. For the individual entities, any change must be communicated and agreed upon. The project owner has no right to dictate the work once it begins (Saxon, 2009). Over and above, any person doing business with federal government is required to register in their database. Most of the contracts offered by the government are paid electronically. For the personal work, payment is done through banks and even sometime on cash basis. Long procedures of registrations are not part of commercial enterprises. Payment is done after completion of work hence more secure.
Skills for Successfully Negotiating a Contract
Winning a contract in both government and commercial enterprises requires sober negotiation skills. The ability to present oneself in admirable manner places an individual a milestone higher. Representation of an organization in such a scenario call for proper understanding of the services. Tuller (2010) affirms that negotiating for consideration is likened to marketing, where the best feet is put forward. Having a clear picture of the entire project is needed to persuade the government on ability to provide G.P.S Navigation System. Problem analysis is a skill which cannot be negated when conducting activities with the government.
The contractor should be in a position to explain the entire process and project possible flaws before commencement of the project. Providing the representative with an outlook of completed work benefit both the parties. Inability to calculate all requirement might impact the provider negatively in case the estimated cost fails to accomplish the task. Integration of the required departments in estimation of workload helps in determination of level of technology to incorporate. Conjointly, planning for implementation enables the contractor to estimate for milestones (Boyce, 2002). Alongside this, he or she is able to provide the government with timelines to commence and finish the work. Planning prepares both parties on what to expect after a given interval.
References
Boyce, T. (2002). Tendering and Negotiating for MoD Contracts. (Business Source Complete.) Thorogood Publishing.
Saxon, M. (2009). An American’s guide to doing business in China: Negotiating contracts and agreements, understanding culture and customs, marketing products and services. Cincinnati: F+W Media.
Tuller, L. (2010). An American’s Guide to Doing Business in Latin America: Negotiating contracts and agreements. Understanding culture and customs. Marketing products and services. Cincinnati: F+W Media.
