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Successful
Negotiating in the Construction Environment
A Power
Summit program
Designed
for Construction Professionals
with
special attention to contracts and change orders
The
Goals of The Session
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Evaluate various negotiating "Systems"
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Identify what works in Construction
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Compile the best advise
-
Develop tools to assist in negotiations
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Discover / Develop your skill set
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Practice your skills
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Gain more confidence
The
Set Up (Hey this could be fun!)
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Each workshop participant assumes the role of either the Owner of a construction project
or one of three Contractors "negotiating" for the job
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Each
participant is given data cards showing information relative to their
role. (Each will possess some public knowledge and some private knowledge)
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The session
has several strategic breakout sessions where participants meet with
others playing the same role and then one-on-one with their counterpart on
the other side. (One group of owners to one group of contractors). These sessions are
designed to work through the negotiating process, step-by-step.
The Object
is to see which "player" ends up with the best negotiated
Contract change order schedule scenario etc Each
hands-on session is placed appropriately, as seen in the following
outline, to maximize concept learning from the earlier sessions.
The
Outline
The
Ultimate Negotiating Goal
Foundational
Principles
The purpose of business / Profit
The Purpose of the customer
The law of need
Construction
is complex - How does that relate to your "sales presentation"
How
do you value yourself or your services?
How
does your potential customer value you?
Planning
for Negotiation
Know your opponent (Term used loosely) and yourself
The organizational level
The personal Level
Collect and organize Information
A
discussion of all the information at our disposal to make the next negotiating
session more successful. Here we unravel the importance of
documentation from design to estimating to project completion and how each
important element can be used to either help or hurt us in negotiating.
This construction specific segment leaves the participant unwilling to
"just show up" at a negotiating session ever again.
Establishing
Goals
Understanding the needs and desires of each side and being able to separate the
two
Specific
application to the A/E/C Industry
The specific goals of the Owner / GC
The specific goals of the Contractor / Sub Contractor
Learning
where these goals are Identified / Established
Hands-on
exercise - Working in a group with others
playing similar roles, each participant creates a list of questions to both
ask and answer in an effort to establish the goals of each side. The
results will be used in a later hands-on segment.
Tools to use in understanding the goals of each side.
Once
again, construction separates itself from other industries by the unique
manner in which we approach the negotiating table. This segment encourages all
levels of "players" to take a step back in time to see just what is
available to us.
The law of flexibility
What are your goals?
Hands-on
exercise - Experience a one-on-one interaction between "Owners"
and "Contractors" in a fact finding interview / presentation style
meeting. The purpose is to identify the goals of each side.
Developing
a Strategy to achieve the goals of both sides
The principle of ownership of mutual goals.
The importance of Emphasizing / showcasing / accenting common goals during negotiations
How
to Undermine
Sticking Points
Preparing
for Actual Negotiation
Hands-on
exercise - The
rule of 3 or Bracketing - Participants use a guide to work through the
price setting maze
The
principle of Authority
The
principle of Power
Power
(as with value, beauty, and music) is in the eye of the beholder
Power
in Negotiating
In
negotiation Power equals the ability and resources to influence others
20
"power Points" - See what the gurus of negotiating have
defined as power positions then discover which are and are not valid for the
construction arena. See how authority, indifference, time constraints,
expertise, knowledge, and 15 other power principles might help (or hurt)
you in your next negotiation
Hands-on
exercise - The Power
"Score Card" - Analyze your position
of power in the upcoming negotiations. Use the provided checklist
"tool" to help
Methods
of Negotiating
Present
the facts Visually
Present
the Facts Verbally
Presenting
your proposal
Hands-on
exercise - Prepare
an outline for your proposal - Another helpful "tool" is introduced
that helps to
establish or confirm legitimacy
Tactics
of Negotiation
The pros have
identified more than 30 tactics commonly used in negotiations.
here we briefly analyze each one for their effectiveness in the construction
market place. what really works for our industry and why. Among
the many tactics explored are deadlines, changing the negotiator, demands,
concessions, crises, higher authority, good guy / bad guy, set asides, acting
dumber than smarter and . . . well you get the idea - see how some of
these could help you master your next negotiation and how some might backfire
on constructors.
Concessions
The
law of reciprocity -(A lesson for all us nice guys)
8
Key strategies to soften the "hard Ball"
See what the Harvard business review recommends for closing the gap to
agreement
Hands-on
exercise - Concessions
Score Card
Let
the negotiating begin - Another hands-on segment where participants use the
"score card" tracking device provided in the course materials to actually
monitor the concession activity on both sides of the table. The important
factors of time and dollars are calculated throughout the negotiating process.
Special emphasis is placed on the importance of the construction schedule and
in discovering things besides money that might motivate the other side to
agreement. Participants will also practice appropriate tactics learned
in the previous segment of the program.
Reaching
agreement
Just
How good is that first offer?
Pre-construction
meetings, change orders,
and schedule updates
How
to pursue
unresolved issues
Know
when to Negotiate During the course of Construction
How
do you know if you were successful?
Evaluating
the negotiation
Five
characteristics of a successful negotiation
7
Criteria for evaluating negotiations
Finalization
Know
when to say when
Negotiate
like the pros
5 Modes of Negotiating
Three
critical elements (Three most important keys)
What makes a
great negotiator?
19
characteristics of an effective negotiator
Things to do and
not do while negotiating
A
review of the most important things learned today? (And
who did best in their negotiations?)
Register
online for this Workshop
Go
to list of scheduled workshops
Go
to Power Summit Home Page
Register
for this workshop by phone - Toll free: 1-866-880-0272
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