• Negotiation involves:
• two or more parties in a process of
exploration and exchange
• process must assure that the
implementation phase will observe the
• correct contents and clear objectives
• ethics and credibility
• exchanging values between the parties
• money, intangible assets, etc.
• weekly, monthly or annual bases, continuously
• buyers and sellers, family members, competitors
• It is a proposal debate. It is not an argument
dispute. (Harvard Field Guide)
• “we require”, “we need”; Is not an argumentation
session, “we would like”, “we feel”, “we hope”
Want or need
defines five levels of
Human needs start
with basic survival
demands and end with
high level attitudes.
The higher levels can
only be accessed if the
previous ones are
Perception is a
used to individually
interpret reality. It
starts by offsetting
the sensorial human
Priority Want Do not
Need Do not
Need Value Period Present
First of all, clarify
what you want,
need, do not want
and do not need.
present value of the
needs, based on
periods and interest
Information and action
and results, which
are parts of a
happens the other
way around, from
the top to the
finally into data.
Variables, concessions and influences
List and prioritize the variables involved in your
business. Insert them in a spreadsheet and
understand each one, their benefits, the cost of fault
and the alternatives.
Select what are the
significant points for
your deal and solve
Remember that if
you have more than
three points that
you consider as a
priority, you must
revise them and
select only three.
BATNA is the
your side if an
other way has
to be found.
Example of BATNA
If you need a
between your home
and your office
everyday, and you are
negotiating with a
driver providing such
transportation, in case
you do not reach a
satisfactory result, the
will be available:
Positions are more related to lose-lose
processes. Interests normally produce more
chance to win-win situations.
Each member of a team
should be assigned a
different role in a
Some suggestions for a
good relationship among
negotiation teams are:
between the members,
looking at each other
frequently, taking notes
and being supportive
with the colleagues.
Types of arguments
(University of Maryland)
• Aristotelian Argument = confirm a position or hypothesis
or to refute an existing argument; persuade the reader to
a particular point of view; uses logic, appeals to the
rational in the audience, and provides empirical and
common sense evidence to persuade the audience
members to change their beliefs, attitudes, and actions.
• Rogerian Argument = develop consensus among
readers rather than establish an adversarial relationship;
winning situation for everyone; avoiding all emotionally
sensitive language, the writer phrases statements in as
neutral a way as possible to avoid alienating readers by
minimizing threat and establishing trust; resolution that
recognizes the interests of all interested parties.
To propose or not propose
There is no clear rule to define if you can move first
or if you should wait for the other party’s proposal. It
depends on perception and intuition.
The confidence level decreases with excess or lack
You do not need to answer questions
immediately. Wait and think before responding.
You do not need to follow the other side’s
speed, mode or reaction. Ask for clarifications
and do not show impatience or limitations.
Depending on how much
you are interested in
keeping a good
relationship and in
holding on to the
there are four possible
It is important to
symbols in order to
reactions or to use
the best constructive
mode in a good
Checking the tone
First of all, listen to what the other party has and does
not have to say, capturing both the actual information
and the words hidden by signals and attitudes. Check
what he/she expects from you, based on your intuition.
Normally people are not able to dissimulate
their emotions and a few provocative
expressions can bring reality onto the table.
Employability increases when you try
to use win-win negotiations.
• Using possibilities to create
• Delegating decision-making to
• Transferring your problem to the
• Splitting the difference after
giving a big number
• Starting off with a high price or
• Offering a small price on a
confused time basis
• Offering other providers to
request a price
• Always holding on to the chance
to walk away
• Starting off with some pre-
condition imposing rules
• Generating bad feelings with
• Focusing on weaker persons of
the other team
• Paying attention to different
issues other than the
• Inducing the other party to
declare himself incompetent
• Informing that you gave a wrong
number and coming up with a
bigger (or smaller) amount
• Adding new numbers after
closing the deal
• Giving up a position, in order to
make the other party ask for
• Forcing the other party to
become more flexible by
• Forcing the understanding of
Explore everything before move, do
not firm anything before know all
Move fast when decisions are easily reversible.
the deal, the
The four following elements are
considered fundamental to obtain a
good negotiation process:
Mediation, Arbitration, Justice
Best choice here …
Pray to do not enter here …
Terms and conditions
• The contract language
• Confidential information
• Contract documents
• Contract price, milestones
• Contractor's representative
• Force majeure
• Work schedule
• Work site
• Billing and payment
• Weather delays
• Company-caused delay
• Shutdown due to non-
compliance with the
• Shutdown without cause
• Liability coverage
• Mediation, arbitration,
• Liquidated damages
• Reimbursement of expenses
• Legal compliance
• Health, safety and
• Patents and intellectual
• Take in consideration that
assumptions and conclusions are
• Use the natural order and go
straight to the point.
• Keep the introduction phase short.
• Bring up representative examples
• Mention sources of thinking.
• Make correlations between causes
• Ask in different ways.
• Introduce business dilemmas.
• Show the 360-degree view of an
• Develop complete business
• Clarify everything that may be
questionable, using different terms
each time the same issue comes up
• Understand that holding an
argument may help, but
negotiations are related to trading,
not to arguing.
• Define variables, ranges and weights, with
time relations. Each variable and value
should be combined with clear timelines.
• Analyze the total cost including the long
term approaches, considering not only the
apparent price, but the real benefit of all
• Be careful with money values and be
explicit with how much, when, who pays,
who receives, confirmations, etc.
• There should be no concessions, only
exchanges. For each concession you may
put up a need and obtain in exchange
something useful for your team.
• Negotiate item by item, but close a package
deal at the end.
• Analyze terms and conditions and be
careful with details and the fine print.
• Make sure that the negotiated points will
not be brought back to be re-discussed.
• Summarize what was agreed and check that
the other party understands everything the
same way as you do.
• Was there enough preparation?
• Did you estimate good BATNA, ZOPA?
• Was the negotiation successful for both parties?
• Did you obtain what you established as objectives?
• Were the steps followed as planned?
• Who made the first offer?
• What tactics were employed? Were they appropriate?
• How were the concessions made?
• How far the result is from ZOPA?
• What would you do differently if you could repeat the
• Never accept simple numbers from your team, always ask for
comments and opinions;
• Ask your team for deep explanations and details;
• Take care not to be too aggressive and create avoidance from
the other side;
• Take care not to be too smooth and lose opportunities for your
• Keep documentation safe and available;
• Be careful with people with whom you have good relationship,
they must be honored and must keep their credibility;
• Never lose your fair play;
• Move fast with reversible decisions;
• Do not mix up best practices with best theories;
• Verify if “the ideal” is being implemented;
• Make everything simple;
• Keep everything simple;
• Finally, you will be ready for shaking hands.