{"id":19435,"date":"2019-08-15T19:56:52","date_gmt":"2019-08-15T19:56:52","guid":{"rendered":"https:\/\/www.process.st\/templates\/vendor-management-contract-negotiation-2\/"},"modified":"2024-02-28T23:56:02","modified_gmt":"2024-02-28T23:56:02","slug":"vendor-management-contract-negotiation-2","status":"publish","type":"post","link":"https:\/\/www.process.st\/templates\/vendor-management-contract-negotiation-2\/","title":{"rendered":"Vendor Management: Contract Negotiation"},"content":{"rendered":"<section id=\"introduction\">\n<h2>Introduction:<\/h2>\n<div class=\"image-content\">\n<figure>\n   <a href=\"https:\/\/www.process.st\/templates\/wp-content\/uploads\/2024\/02\/pCALUw9vy_Ck9eJVDRZPJQ.png\" alt=\"Introduction:\" target=\"_blank\" rel=\"noopener\"> <img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/www.process.st\/templates\/wp-content\/uploads\/2024\/02\/pCALUw9vy_Ck9eJVDRZPJQ.png\"> <\/a><br \/>\n  <\/figure>\n<\/p><\/div>\n<div class=\"text-content\">\n<p>Depending on the size, negotiating a contract with a vendor can take months of preparation \u2014 and even longer to hash out the details. In this process, you'll go through the steps of planning and negotiating a contract with a vendor. This includes <strong>communicating with contacts<\/strong>, <strong>gathering requirements<\/strong>, finalizing your <strong>needs and limitations<\/strong>, and then the actual <strong>negotiation<\/strong> itself.<\/p>\n<p>For big deals, contract negotiations can waste or save millions of dollars. Use this process to <strong>track your progress<\/strong> throughout. It's especially useful if you're <strong>tracking multiple negotiations<\/strong> through the pipeline.<\/p>\n<\/p><\/div>\n<div class=\"video-content\">\n<div class=\"iframe-container\">\n   <iframe src=\"https:\/\/www.youtube.com\/embed\/bgz2vNMTpxQ?modestbranding=1&amp;showinfo=0\" frameborder=\"0\" allowfullscreen=\"true\"> <\/iframe>\n  <\/div>\n<\/p><\/div>\n<\/section>\n<section id=\"planning\">\n<h2>Planning:<\/h2>\n<\/section>\n<section id=\"identify-the-individual-with-which-you-will-negotiate\">\n<h2>Identify the individual with which you will negotiate<\/h2>\n<div class=\"text-content\">\n<p>To <strong>track multiple negotiations<\/strong>, make sure you're recording the details in the form fields below. You can use the <a href=\"https:\/\/www.process.st\/help\/docs\/template-overview\/\" rel=\"nofollow noopener\" target=\"_blank\">template overview<\/a> to see all negotiations on one page, complete with the form data.<\/p>\n<\/p><\/div>\n<div class=\"text-field-content form-field-content\">\n<div class=\"form-group\">\n   <label> Vendor name <\/label><br \/>\n   <input type=\"text\" placeholder=\"Something will be typed here...\" disabled class=\"form-control\">\n  <\/div>\n<\/p><\/div>\n<div class=\"text-field-content form-field-content\">\n<div class=\"form-group\">\n   <label> Contact name <\/label><br \/>\n   <input type=\"text\" placeholder=\"Something will be typed here...\" disabled class=\"form-control\">\n  <\/div>\n<\/p><\/div>\n<div class=\"text-field-content form-field-content\">\n<div class=\"form-group\">\n   <label> Contact email address <\/label><br \/>\n   <input type=\"text\" placeholder=\"Something will be typed here...\" disabled class=\"form-control\">\n  <\/div>\n<\/p><\/div>\n<\/section>\n<section id=\"check-your-vendor-contact-has-the-authority-to-negotiate\">\n<h2>Check your vendor contact has the authority to negotiate<\/h2>\n<div class=\"text-content\">\n<p><strong>Ask upfront<\/strong>: \"Are you authorized to negotiate this contract?\"<\/p>\n<p>This will avoid you wasting your time dealing with a contact who isn't allowed to negotiate.<\/p>\n<\/p><\/div>\n<\/section>\n<section id=\"send-an-rfp\">\n<h2>Send an RFP<\/h2>\n<div class=\"text-content\">\n<p>A Request for Proposals (RFP) is a document outlining your needs that helps a vendor know <strong>if they're a good fit<\/strong> for you, what your priorities are, and more.<\/p>\n<p>The Alberta Ministry of Service has an example RFP for packaged software template available <a href=\"https:\/\/www.servicealberta.ca\/pdf\/buy_sell\/PackagedSoftwareRFPtemplate.pdf\" rel=\"nofollow noopener\" target=\"_blank\">here<\/a>. Depending on the formality of the situation, you may or may not need to approach vendors with an RFP.<\/p>\n<p>To <strong>store the document in a central place<\/strong> for later reference (or attach it for peer review), use the file upload widget below.<\/p>\n<\/p><\/div>\n<div class=\"file-field-content form-field-content\">\n<div class=\"form-group\">\n   <label> Upload RFP <\/label> <\/p>\n<div class=\"file-container\">\n    <button type=\"button\" disabled class=\"btn btn-default\"> <i class=\"fa fa-upload btn-icon\"><\/i> File will be uploaded here <\/button>\n   <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/section>\n<section id=\"decide-if-you-need-legal-assistance\">\n<h2>Decide if you need legal assistance<\/h2>\n<div class=\"text-content\">\n<p>If you're not comfortable with legal jargon on the contracts, it'd be best to <strong>seek legal guidance<\/strong>. There are lawyers that specialize specifically in contract negotiation, some of which are listed in <a href=\"http:\/\/lawyers.findlaw.com\/lawyer\/practice\/contracts\" rel=\"nofollow noopener\" target=\"_blank\">this directory<\/a>.<\/p>\n<p>Alternatively, you can <strong>use a service like <a href=\"https:\/\/www.upcounsel.com\/\" rel=\"nofollow noopener\" target=\"_blank\">Upcounsel<\/a><\/strong> to get bids from multiple lawyers.<\/p>\n<\/p><\/div>\n<\/section>\n<section id=\"decide-where-the-negotiations-will-take-place\">\n<h2>Decide where the negotiations will take place<\/h2>\n<div class=\"text-content\">\n<p>Will you make a visit, or host the negotiations at your office?<\/p>\n<p>Will you negotiate physically, or using teleconferencing \/ Skype?<\/p>\n<p>The Balance <a href=\"https:\/\/www.thebalance.com\/contract-negotiation-strategies-2533815\" rel=\"nofollow noopener\" target=\"_blank\">recommends<\/a> <strong>negotiating in person, or using video chat<\/strong> because body language is an important part of negotiations. Also take into account whether <strong>visiting the vendor<\/strong> will give you an edge in negotiations.<\/p>\n<\/p><\/div>\n<\/section>\n<section id=\"note-down-your-needs-and-limitations\">\n<h2>Note down your needs and limitations<\/h2>\n<div class=\"text-content\">\n<p>Knowing <strong>what you want<\/strong> and <strong>what you're willing to give<\/strong> for it is essential for strong negotiations.<\/p>\n<p>To keep exact notes, you can use the form fields below.<\/p>\n<\/p><\/div>\n<div class=\"textarea-field-content form-field-content\">\n<div class=\"form-group\">\n   <label> Needs (products, services, discounts, terms) <\/label><br \/>\n   <textarea placeholder=\"Something will be typed here...\" rows=\"3\" disabled class=\"form-control\"><\/textarea>\n  <\/div>\n<\/p><\/div>\n<div class=\"textarea-field-content form-field-content\">\n<div class=\"form-group\">\n   <label> Limitations (time, money, staff) <\/label><br \/>\n   <textarea placeholder=\"Something will be typed here...\" rows=\"3\" disabled class=\"form-control\"><\/textarea>\n  <\/div>\n<\/p><\/div>\n<\/section>\n<section id=\"schedule-a-final-date-and-location-for-the-negotiation\">\n<h2>Schedule a final date and location for the negotiation<\/h2>\n<div class=\"text-content\">\n<p><strong>Lock down the specifics<\/strong> of the negotiation. Using the form fields below, you can build out an email that you can then send to your vendor contact.<\/p>\n<\/p><\/div>\n<div class=\"date-field-content form-field-content\">\n<div class=\"form-group\">\n   <label> Date of the negotiation <\/label> <\/p>\n<div class=\"date-container\">\n    <button type=\"button\" disabled class=\"btn btn-default\"> <i class=\"fa fa-calendar btn-icon\"><\/i> Date will be set here <\/button>\n   <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div class=\"textarea-field-content form-field-content\">\n<div class=\"form-group\">\n   <label> Location of the negotiation <\/label><br \/>\n   <textarea placeholder=\"Something will be typed here...\" rows=\"3\" disabled class=\"form-control\"><\/textarea>\n  <\/div>\n<\/p><\/div>\n<div class=\"text-content\">\n<p>You can use the email widget below to contact your vendor with the time and place of the negotiation automatically filled:<\/p>\n<\/p><\/div>\n<\/section>\n<section id=\"negotiating\">\n<h2>Negotiating:<\/h2>\n<\/section>\n<section id=\"explain-all-essential-prerequisites-terms-and-conditions\">\n<h2>Explain all essential prerequisites, terms and conditions<\/h2>\n<div class=\"text-content\">\n<p>These will be different for every company. For guidance, refer to the example terms and conditions documents from:<\/p>\n<ul>\n<li><a href=\"https:\/\/das.iowa.gov\/terms_services.pdf\" rel=\"nofollow noopener\" target=\"_blank\">Iowa Government<\/a><\/li>\n<li><a href=\"http:\/\/www.baltimorecityschools.org\/cms\/lib\/MD01001351\/Centricity\/Domain\/8835\/Vendor%20Agreement.pdf\" rel=\"nofollow noopener\" target=\"_blank\">Baltimore City<\/a><\/li>\n<li><a href=\"http:\/\/www.bu.edu\/sourcing\/suppliercenter\/terms-and-conditions-goods\/\" rel=\"nofollow noopener\" target=\"_blank\">Boston University<\/a><\/li>\n<\/ul>\n<p>In essence, terms and conditions documents contain clauses referring to:<\/p>\n<ul>\n<li>Agreement<\/li>\n<li>Prices and payment<\/li>\n<li>Delivery<\/li>\n<li>Termination<\/li>\n<li>Subcontractors<\/li>\n<li>Warranties<\/li>\n<li>Changes<\/li>\n<li>Patents, copyrights, trademarks, and trade secrets<\/li>\n<li>Assignment<\/li>\n<li>Release of liens<\/li>\n<li>Indemnity<\/li>\n<li>Insurance<\/li>\n<li>Compliance with laws<\/li>\n<\/ul><\/div>\n<\/section>\n<section id=\"define-all-goods-or-services-to-be-provided\">\n<h2>Define all goods or services to be provided<\/h2>\n<div class=\"text-field-content form-field-content\">\n<div class=\"form-group\">\n   <label> SKU \/ Specific service #1 <\/label><br \/>\n   <input type=\"text\" placeholder=\"Something will be typed here...\" disabled class=\"form-control\">\n  <\/div>\n<\/p><\/div>\n<div class=\"text-field-content form-field-content\">\n<div class=\"form-group\">\n   <label> SKU \/ Specific service #2 <\/label><br \/>\n   <input type=\"text\" placeholder=\"Something will be typed here...\" disabled class=\"form-control\">\n  <\/div>\n<\/p><\/div>\n<div class=\"text-field-content form-field-content\">\n<div class=\"form-group\">\n   <label> SKU \/ Specific service #3 <\/label><br \/>\n   <input type=\"text\" placeholder=\"Something will be typed here...\" disabled class=\"form-control\">\n  <\/div>\n<\/p><\/div>\n<div class=\"text-content\">\n<p>If you need, you can edit this template to include more form fields.<\/p>\n<\/p><\/div>\n<\/section>\n<section id=\"clearly-state-compensation\">\n<h2>Clearly state compensation<\/h2>\n<div class=\"text-content\">\n<p>Outline the total <strong>cost<\/strong>, payment <strong>schedule<\/strong>, and financing <strong>terms<\/strong>.<\/p>\n<\/p><\/div>\n<div class=\"text-field-content form-field-content\">\n<div class=\"form-group\">\n   <label> Total cost <\/label><br \/>\n   <input type=\"text\" placeholder=\"Something will be typed here...\" disabled class=\"form-control\">\n  <\/div>\n<\/p><\/div>\n<div class=\"text-field-content form-field-content\">\n<div class=\"form-group\">\n   <label> Payment schedule <\/label><br \/>\n   <input type=\"text\" placeholder=\"Something will be typed here...\" disabled class=\"form-control\">\n  <\/div>\n<\/p><\/div>\n<div class=\"text-field-content form-field-content\">\n<div class=\"form-group\">\n   <label> Financing terms <\/label><br \/>\n   <input type=\"text\" placeholder=\"Something will be typed here...\" disabled class=\"form-control\">\n  <\/div>\n<\/p><\/div>\n<\/section>\n<section id=\"acknowledge-the-start-and-termination-dates\">\n<h2>Acknowledge the start and termination dates<\/h2>\n<div class=\"text-content\">\n<p>To be clear of the <strong>effective contract dates<\/strong>, record the start and end dates of the agreement in the fields below.<\/p>\n<\/p><\/div>\n<div class=\"date-field-content form-field-content\">\n<div class=\"form-group\">\n   <label> Effective from date <\/label> <\/p>\n<div class=\"date-container\">\n    <button type=\"button\" disabled class=\"btn btn-default\"> <i class=\"fa fa-calendar btn-icon\"><\/i> Date will be set here <\/button>\n   <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div class=\"date-field-content form-field-content\">\n<div class=\"form-group\">\n   <label> Termination \/ expiration date <\/label> <\/p>\n<div class=\"date-container\">\n    <button type=\"button\" disabled class=\"btn btn-default\"> <i class=\"fa fa-calendar btn-icon\"><\/i> Date will be set here <\/button>\n   <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/section>\n<section id=\"identify-and-address-potential-risks-and-liabilities\">\n<h2> Identify and address potential risks and liabilities<\/h2>\n<div class=\"text-content\">\n<p>Drawing on the issues you might have brought up in the vendor evaluation, <strong>identify the risks and liabilities<\/strong> of this particular vendor and contract.<\/p>\n<p>For example:<\/p>\n<ul>\n<li>Is it at all possible the vendor could go out of business?<\/li>\n<li>What if there's a delay in getting stock from the usual supplier?<\/li>\n<li>Does the vendor have experience dealing with companies of your size?<\/li>\n<\/ul>\n<p>If you have worries, it's time to re-address them during negotiation. It may give you a stronger negotiating stance.<\/p>\n<\/p><\/div>\n<\/section>\n<section id=\"set-reasonable-expectations-for-the-relationship\">\n<h2>Set reasonable expectations for the relationship<\/h2>\n<div class=\"text-content\">\n<p>It's important to <strong>agree upon a communication schedule<\/strong>, and set the terms for a continued relationship.<\/p>\n<p>Think about how often you want to meet with the vendor, whether or not there's room for future re-negotiation, etc.<\/p>\n<\/p><\/div>\n<\/section>\n<section id=\"sources\">\n<h2>Sources:<\/h2>\n<div class=\"text-content\">\n<ul>\n<li><a href=\"http:\/\/www.baltimorecityschools.org\/\" rel=\"nofollow noopener\" target=\"_blank\">Baltimore City Schools<\/a> - <a href=\"http:\/\/www.baltimorecityschools.org\/cms\/lib\/MD01001351\/Centricity\/Domain\/8835\/Vendor%20Agreement.pdf\" rel=\"nofollow noopener\" target=\"_blank\">Vendor Agreement [pdf]<\/a><\/li>\n<li><a href=\"https:\/\/das.iowa.gov\/\" rel=\"nofollow noopener\" target=\"_blank\">Iowa Government<\/a> - <a href=\"https:\/\/das.iowa.gov\/terms_services.pdf\" rel=\"nofollow noopener\" target=\"_blank\">Terms &amp; Services [pdf]<\/a><\/li>\n<li><a href=\"http:\/\/www.bu.edu\/\" rel=\"nofollow noopener\" target=\"_blank\">Boston University<\/a> - <a href=\"http:\/\/www.bu.edu\/sourcing\/suppliercenter\/terms-and-conditions-goods\/\" rel=\"nofollow noopener\" target=\"_blank\">Terms and Conditions for the Purchase of Goods<\/a><\/li>\n<li><a href=\"http:\/\/www.nolo.com\" rel=\"nofollow noopener\" target=\"_blank\">Nolo<\/a> - <a href=\"http:\/\/www.nolo.com\/legal-encyclopedia\/contracts-basics-33367.html\" rel=\"nofollow noopener\" target=\"_blank\">Contracts: The Basics<\/a><\/li>\n<li><a href=\"http:\/\/searchcio.techtarget.com\/\" rel=\"nofollow noopener\" target=\"_blank\">SearchCIO<\/a> - <a href=\"http:\/\/searchcio.techtarget.com\/magazineContent\/How-to-Take-Control-When-Negotiating-Vendor-Contracts\" rel=\"nofollow noopener\" target=\"_blank\">How to Take Control When Negotiating Vendor Contracts<\/a><\/li>\n<li><a href=\"http:\/\/doa.wi.gov\/\" rel=\"nofollow noopener\" target=\"_blank\">Wisconsin Department of Administration<\/a> - <a href=\"http:\/\/doa.wi.gov\/Documents\/DEO\/Procurement\/Negotiation\/NegotiationInfo.pdf\" rel=\"nofollow noopener\" target=\"_blank\">A Basic Introduction to Contract Negotiation for State Agency Purchasing and Program Staff [pdf]<\/a><\/li>\n<li><a href=\"http:\/\/www.gartner.com\/\" rel=\"nofollow noopener\" target=\"_blank\">Gartner<\/a> - <a href=\"http:\/\/www.gartner.com\/it\/initiatives\/pdf\/KeyInitiativeOverview_NegotiatingVendorContracts.pdf\" rel=\"nofollow noopener\" target=\"_blank\">Negotiating Vendor Contracts [pdf]<\/a><\/li>\n<\/ul><\/div>\n<\/section>\n<section id=\"related-checklists\">\n<h2>Related checklists:<\/h2>\n<div class=\"text-content\">\n<ul>\n<li><a href=\"https:\/\/www.process.st\/templates\/cisco-router-setup\/\" rel=\"nofollow\">Cisco Router Setup<\/a><\/li>\n<li><a href=\"https:\/\/www.process.st\/templates\/vendor-management-supplier-evaluation\/\" rel=\"nofollow\">Vendor Management: Supplier Evaluation<\/a><\/li>\n<li><a href=\"https:\/\/www.process.st\/templates\/it-service-call-process\/\" rel=\"nofollow\">IT Service Call Process<\/a><\/li>\n<li><a href=\"https:\/\/www.process.st\/templates\/scheduled-maintenance-notification\/\" rel=\"nofollow\">Scheduled Maintenance Notification<\/a><\/li>\n<li><a href=\"https:\/\/www.process.st\/templates\/patch-management\/\" rel=\"nofollow\">Patch Management<\/a><\/li>\n<li><a href=\"https:\/\/www.process.st\/templates\/network-security-management\/\" rel=\"nofollow\">Network Security Management<\/a><\/li>\n<li><a href=\"https:\/\/www.process.st\/templates\/client-data-backup-best-practices\/\" rel=\"nofollow\">Client Data Backup Best Practices<\/a><\/li>\n<li><a href=\"https:\/\/www.process.st\/templates\/computer-maintenance-guide\/\" rel=\"nofollow\">Computer Maintenance Guide<\/a><\/li>\n<li><a href=\"https:\/\/www.process.st\/templates\/inventory-management-process\" rel=\"nofollow\">Inventory Management Process<\/a><\/li>\n<li><a href=\"https:\/\/www.process.st\/templates\/ubuntu-server-setup-process\/\" rel=\"nofollow\">Server Setup Process<\/a><\/li>\n<li><a href=\"https:\/\/www.process.st\/templates\/virtual-private-server-setup\/\" rel=\"nofollow\">Virtual Private Server Setup<\/a><\/li>\n<li><a href=\"https:\/\/www.process.st\/templates\/it-support-process\/\" rel=\"nofollow\">IT Support Process<\/a><\/li>\n<li><a href=\"https:\/\/www.process.st\/templates\/helpdesk-management\/\" rel=\"nofollow\">Helpdesk Management<\/a><\/li>\n<li><a href=\"https:\/\/www.process.st\/templates\/server-maintenance-checklist\/\" rel=\"nofollow\">Server Maintenance Checklist<\/a><\/li>\n<li><a href=\"https:\/\/www.process.st\/templates\/server-security-checklist\/\" rel=\"nofollow\">Server Security Checklist<\/a><\/li>\n<li><a href=\"https:\/\/www.process.st\/templates\/information-security-incident-response\/\" rel=\"nofollow\">Information Security Incident Response<\/a><\/li>\n<li><a href=\"https:\/\/www.process.st\/templates\/sql-server-audit-checklist\/\" rel=\"nofollow\">SQL Server Audit Checklist<\/a><\/li>\n<li><a href=\"https:\/\/www.process.st\/templates\/privileged-password-management\/\" rel=\"nofollow\">Privileged Password Management<\/a><\/li>\n<li><a href=\"https:\/\/www.process.st\/templates\/network-administrator-daily-tasks\/\" rel=\"nofollow\">Network Administrator Daily Tasks<\/a><\/li>\n<li><a href=\"https:\/\/www.process.st\/templates\/network-security-audit-checklist\/\" rel=\"nofollow\">Network Security Audit Checklist<\/a><\/li>\n<li><a href=\"https:\/\/www.process.st\/templates\/firewall-audit-checklist\/\" rel=\"nofollow\">Firewall Audit Checklist<\/a><\/li>\n<li><a href=\"https:\/\/www.process.st\/templates\/vpn-configuration\/\" rel=\"nofollow\">VPN Configuration<\/a><\/li>\n<li><a href=\"https:\/\/www.process.st\/templates\/setup-apache-server\/\" rel=\"nofollow\">Apache Server Setup<\/a><\/li>\n<li><a href=\"https:\/\/www.process.st\/templates\/email-server-security\/\" rel=\"nofollow\">Email Server Security<\/a><\/li>\n<li><a href=\"https:\/\/www.process.st\/templates\/penetration-testing\/\" rel=\"nofollow\">Penetration Testing<\/a><\/li>\n<\/ul><\/div>\n<\/section>\n","protected":false},"excerpt":{"rendered":"<p>Introduction: Depending on the size, negotiating a contract with a vendor can take months of preparation \u2014 and even longer to hash out the details. In this process, you'll go through the steps of planning and negotiating a contract with a vendor. This includes communicating with contacts, gathering requirements, finalizing your needs and limitations, and [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":11961,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ep_exclude_from_search":false,"cover_icon_emoji":"","cover_icon_url":"","tasks_count":"18","template_description":"How to plan and structure a contract negotiation with a vendor.","template_id":"ioaME5EuhMTZQebAychBGw","task_0":"Introduction:","task_slug_0":"introduction","task_1":"Planning:","task_slug_1":"planning","task_2":"Identify the individual with which you will negotiate","task_slug_2":"identify-the-individual-with-which-you-will-negotiate","task_3":"Check your vendor contact has the authority to negotiate","task_slug_3":"check-your-vendor-contact-has-the-authority-to-negotiate","task_4":"Send an RFP","task_slug_4":"send-an-rfp","task_5":"Decide if you need legal 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