Negotiation is a part of everyday life, but negotiation is even more important in case of conflict. Dispute brings up concerns about the cost of litigation, loss of reputation and loss of time and energy. In case of a dispute, negotiating might allow you to avoid these costs or, at the very least, mitigate them. What do you need to know? Here are some tips to make your negotiations more successful and a roadmap to avoid missing milestones.
Common tips on negotiation
- Put in place written contracts and check them before negotiating to know what your duties are.
- If you are unhappy about something, raise your concern right away to avoid the situation deteriorating in the future.
- Before any negotiation be sure about all the things the other party intends to argue about.
- Ensure that the other party’s representative is fully empowered.
- Once you have retreated, it is hard to climb up again.
- Be aware of the dangerous sentences – “a few small details”.
- Maintain a calm and courteous tone. Negotiation has more to do with communication than competition.
- Don’t take too much. In a good negotiation both people should feel they received something – you might keep a great long-term business relationship after that.
- Use silence – if the other party does not accept your offer, rather than rushing to reply, stay silent and they might explain why.
- Ask open ended questions rather than closed ones- you might meet your contractor in the middle rather than face a flatout refusal.
Business Dispute Negotiation – Roadmap
Most disputes can be settled by using a common sense approach. Thus, you can use the above tips to negotiate with your contractors.
If the common sense approach does not work, you could use an Alternative dispute resolution (ADR) to avoid the expense of a courtroom. There are two different collaborative practices; mediation and arbitration. What is the differences between these two types of ADR?
An independent third party will help you and your contractor come to a mutually acceptable settlement. You are still in control because the mediator does not have the authority to make a binding decision.
An independent third party will consider the facts and make a binding decision.
If mediation does not give you the desired result and you do not want to use arbitration, your last option is going to court.
I hope this helps! If you’re unsure about the legal advice that you or your business require, book a call with our legal team. We’ll talk you through your needs and answer the questions you may have on Seed Funding.