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Pre-negotiation process is as significant as the real contract negotiation. In this regard, the pre-negotiation process provides a platform for the contractor to approach and manage issues affecting the negotiation. A general perception about pre-negotiation is that the process allows the contractor to determine risks associated with committing into a contract.
In addition, the contractor determines potential conflicts and consequently resolves them in a pre-negotiation process. From this perspective, the contractor uses the process to prepare for the negotiation by adapting co-operative perceptions and behaviors. However, the importance of pre-negotiation is understood by analyzing the concept’s process.
Pre-negotiation stages
The first stage in a pre-negotiation process involves participants’ selection. In this regard, selecting participants who have the authority to make decisions is critical (Druckman, 2001). This is essential as it makes the decision-making process easy. Selecting participants with knowledge and skills on matters pertaining to business contracts is vital. Knowledgeable participants ensure that a negotiation process is valuable to the company.
The second stage of the pre-negotiation process involves setting negotiation guidelines. In most cases, negotiations can lead to a conflict and unresolved issues. In this regard, a framework on how negotiation will be conducted requires prior planning (Druckman, 2001). A negotiation framework is critical in reducing risks that may affect the company’s commitment in the contract.
Through negotiation guidelines a company benefit by linking its values with other parties. In addition, a negotiation guideline narrows down the scope of the contract. In general, effective negotiation guidelines are a major factor in determining the success of a contract.
Setting negotiation agenda is another process that requires preparation before the actual negotiation (Druckman, 2001). In this regard, participants from the negotiating parties are to formulate an agenda using their expertise. This process ensures that a consensus to achieve a common goal is realized before negotiation commences.
Moreover, this process ensures that the negotiation does not consume a lot of time. In addition, the pre-negotiation decision to set an agenda eliminates risks and uncertainties associated with the actual negotiation. From this perspective, the company can determine whether the negotiation is valuable or not.
A coalition building activity should be a core element of the pre-negotiation process. This activity ensures that the company’s public image is improved. In addition, a coalition building activity ensures that all procedures and legalities are duly followed during the negotiation process. This saves the company from negative legal implications resulting from contract malpractices.
From a pre-negotiation process, the company should benefit from an improved relationship with the negotiating partner (Druckman, 2001). This is critical for future business opportunities. Collecting and validating crucial information such as supplier cost and contract value is determined at the pre-negotiation process.
Finally, the pre-negotiation process is significant in managing the company’s expectations. Therefore, the company makes the relevant decisions regarding the terms of negotiation, the role of negotiating participants and contract value.
Techniques
Companies consider government and relative agencies as potential clients (Watkins, Edwards & Thakrar, 2002). However, most of the government business deals are associated with bureaucracy, competitiveness and legal issues. In this respect, companies require special tactics to win government tenders or contracts.
It is important for the company to identify government’s contracting officer. In addition, understanding the authority of the contracting officer is critical prior making any business contact. Familiarizing with the statutes of labor standards is critical since government procurement follows predetermined legislation (Watkins, Edwards & Thakrar, 2002).
From this perspective, a business company should learn statutes related to labor standards. Such statutes include Contract Work Hours and Service Contract Act. In addition, the company is expected to be conversant with the government’s national and socio-economic objectives. It is critical for the company to avoid using bribes as a way of attaining government contracts. Therefore, familiarizing with contract provisions that foster integrity of government procurement process is necessary.
It is advisable for companies to seek conflict resolution from the Board of Contracts Appeal (BCA). It is important to note that conflicts in federal contracts are resolved through BCA.
The best way to maintain a good business relationship with the government is by complying with specifications of the contract terms (Watkins, Edwards & Thakrar, 2002). Therefore, it is necessary for the company to avoid exaggerations of its capacity to handle government business. Therefore, companies should use production control schedules to ensure the capacity of handling government projects is intact. Scheduling of subcontracts to meet the government contract deadline is advised.
Companies should use information technology to improve on service delivery as compared to government way of operations. Mastering electronic commerce offers the government with reliability of outsourcing services to a technology-oriented company. Moreover, it is important for a company to seek experience in government contracts.
This can be realized by engaging in contract deals as a subcontractor for renowned government contractors. Consequently, the company can regularly check on Invitations for Bid (IFB) as reported through the various government agencies. It is necessary to conduct a research on previous bids issued by the government. Conducting a research on government’s practices and patterns in issuing of bids to contractors is essential.
References
Druckman, D. (2001). Turning Points in International Negotiation A Comparative Analysis. Journal of Conflict Resolution, 45(4), 519-544.
Watkins, M., Edwards, M., & Thakrar, U. (2002). Winning the influence game: what every business leader should know about government. Hoboken, NJ: John Wiley & Sons.
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