Importance of Negotiation in Project Management

Importance of Negotiation in Project Management

Importance of Negotiation in Project Management
Importance of Negotiation in Project Management

What is the negotiation in a project

Negotiation is a process consisting of the activities necessary to resolve different types of disputes through consultations between the parties involved in order to reach a consensus. Negotiations can take place at any time in the project lifecycle and may be formal or non-formal.

Formal negotiation implies an agreement through contracts and formal documents, while informal negotiations include debates to resolve a conflict between team members, for instance. In project management, the negotiation process is divided into phases and include:
  • Planning: the preparation of all relevant information necessary for the discussion. 
  • Debate: here the key issues are examined and discussed. 
  • Proposal: the creation of the proposal as a way of solving the problem presented. 
  • Revision: this can include negotiating compromises before an agreement is formalized and before the information is shared throughout the organization.

Objective of Negotiation

Throughout the negotiation meeting, negotiators should keep in mind the objectives of the negotiation meeting and key tactics they may use in order to achieve these objectives. Working for the betterment of the company, the project manager wants to obtain a fair and reasonable price, while still getting the contract preformed within the time and performance limitations.

The buyer will want to pit clauses in the contract so that he will be assured of some control. The buyer should persuade the seller to give maximum cooperation to the buyer when carrying out the terms of the contract. The last objective of the buyer is to develop a good relationship with the supplier. A cooperative attitude during negotiations makes it easier to work together on possible matters that may occur during the contract period. And possible future projects.

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Reference: twproject

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