Negotiate Contract

A well-written contract ensures that the selected vendor meets the company’s specific expectations and objectives for the purchase. During the evaluation process, the team will determine whether the selected vendor will have any difficulty meeting original purchase objectives. The negotiating team, therefore, must reach agreement on which objectives will require negotiation and what an acceptable outcome will be.

Negotiate Contract has three steps:

  1. Refine Contract Objectives.
  2. Negotiate Contract Terms with Vendor.
  3. Obtain Internal Approval.

When you have completed these steps, your agreement with the vendor should clearly document the mutual expectations of the customer and the vendor.

Do not expect that negotiations will always be successful in achieving consensus on all key items. It is a smart idea to have a Plan B in case the negotiations fail. This might involve negotiating with the second-place vendor or dropping the purchase proposal altogether.

All of the tools in this section are appropriate for organizations undertaking significant purchases, except for the Guide to Interpreting Standard Contracts.

Vendor Management

Bundle 2 of 3



Steps Tools Related Research
FastTrack Activity Word Document Negotiate Contract FastTrack  
Review Proposed Contract Word Document Guide to Interpreting Standard Contracts
Prepare Support Documentation for Contract Word Document Purchase Recommendation Template  
Establish Contract Negotiating Team Word Document Contract Negotiation Team Selection Tool
Word Document Contract Negotiation Team Rules of Engagement Checklist
Identify Objectives at Risk Excel Document Contract Risk Assessment Tool  
Negotiate Key Changes Excel Document Contract Negotiation Plan
Identify Influencers and Their Issues or Priorities Word Document Contract Approval Documentation Checklist  
Submit Contract and Support Documentation for Approval Word Document Contract Approval Form  
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