A contract negotiator helps all parties in a contract come to an agreement. If price or cost are factors in the negotiation, this can include negotiating them. Terms like delivery timelines, mediation, and severability may also be included. A contract negotiator could be a third party whose sole purpose is to reach an agreement. He or she may also be hired to represent one or more of the parties, with the goal of negotiating the contract in their favor.
Contract negotiators may be employed by companies that process a large number of contracts. Professionals may be hired by other businesses. Such negotiators are frequently attorneys or have had some legal training or experience. Some regulatory bodies negotiate certificates and certifications.
When a contract negotiator isn’t representing one or more specific parties, he or she should act impartially. This allows for a fair review of the terms and the opportunity to propose compromises that are acceptable to both parties. In some cases, such neutrality is required, and violations of the neutrality rule, usually in the form of monetary payment or other remuneration by one party, can be prosecuted.
However, in many cases, a specific party hires the contract negotiator. His or her job is to safeguard the interests of that party by “winning” as many negotiation points as possible. These points can range from removing entire contract terms to changing the rate of pay or the timeline for completing deliverables.
Contracting parties frequently rank negotiation points in order of importance, and the contract negotiator must know which points are critical and which can be compromised. In order to win a “need to have” point, a contract negotiator frequently sacrifices one or more “nice to have” points. For example, a buyer may prefer a lower price, longer payment terms, and a shorter timeline, but due to other obligations, the timeline may be the most important factor. The negotiator may request all three points, but in exchange for a shorter timeline, agree to keep the cost and payment terms the same.
Meetings consume a large portion of a contract negotiator’s time. These meetings could be private with his or her own client or multiparty meetings where he or she is representing a client. He or she may also be present at multiparty negotiations with the client.
Furthermore, the negotiator devotes some time to documenting agreements and concessions. This could be done through e-mail, but it could also be done through regular mail. Because documentation of an agreement is critical in the event of disagreements in subsequent meetings, negotiators typically keep meticulous records of all discussions, including times and dates.