Contract Negotiation Handbook

P. D. V. Marsh

Gower Publishing, Ltd., 2001 - Reference - 337 pages

Every organization enters into agreements for purchase and supply of goods and services, and most managers have some involvement in negotiating. Moreover the successful planning, execution and conclusion of contract negotiations can contribute directly to corporate profitability. The Contract Negotiation Handbook explains how the need to negotiate arises and how to form a negotiating plan. It sets out a structured approach to negotiation through all its various stages - preparing to negotiate, the opening of negotiations and how these develop at the negotiating table, and the closing and recording of the bargain. The use and misuse of certain tactics in negotiation are also covered. This classic text has now been thoroughly updated and revised, employing a more user-friendly approach. New features include a discussion of partnering and the importance of long-term relationships and contracts. The role of the psychology of bargaining is integrated throughout the text, rather than being treated as a separate entity.

Contents

• List of figures: 1
• Post tender negotiation: 14
• Planning for Negotiations: 29
• Data acquisition the negotiating environment and the other partys: 37
• Data acquisition objectives of the other side their level of commitment: 48
• Means of acquiring data: 58
• Setting the corporate objectives: 67
• Personal objectives of the negotiators: 73
• Choice of strategy: 87
• Shortterm contracts level of the first offer: 105
• Contract dispute the first offer: 119
• The negotiating team: 128
• The negotiating brief: 145
• The opening: 160
• The followup: 179
• Identifying the bargain: 203
• Negotiation Tactics: 223
• Situation tactics: 237
• Epilogue: 259
• Expected value of an offer: 266
• 4 Typical utility curves under risk: 272
• The theory of games: 273
• Example of zerosum game with saddle point: 276
• Al 1l Example of zerosum game no saddle point: 277
• Example of nonzero sum game: 278
• Commercial example of the prisoners dilemma: 280
• 14 Example of nonzero sum game collaborative: 281
• The negotiating set: 282
• Commercial example of a game against nature: 283
• riskless utility of price and delivery: 285
• Additive utility values for price and delivery: 286
• competitive bidding purchasers: 295
• Bidders normal utility curve: 299
• poor order book: 300
• full order book: 301
• poor order book and contractual risk: 302
• Graph of Partys success probability for a range of bids: 304
• Partys expected success probability: 305
• Expected utility to Party of a series of bids: 307
• Competitive bidding multiple opportunities: 308
• Decision tree of possible outcomes to multiple bids: 310
• multiple bids: 311
• Expected utility value to Party of a combination of two bids: 312
• Decision tree Partys bid against competitor A: 313
• Utility curve for marketing manager: 314
• The bargaining zone: 318
• Relationship of the above model to that proposed by Cross: 322
• Possible changes resulting from the presence of other competitors: 332
• Index: 335

About the author

P D V Marsh, BA (Hons), is a retired solicitor. He began his commercial career with the National Coal Board where he became their Chief Contracts Officer. He later held senior posts with AEI Limited and Standard Telephones and Cables Limited where, for four years, he was Project Manager for their Submarine Telephone Cable Division. He then joined George Wimpey Ltd and became a director of Wimpey Major Projects Ltd. His last post before retiring was as Contracts Manager for the Transportation Systems Division of Transmanche Link. Since retiring in 1990 he has run his own consultancy practice.

Bibliographic information

• Title: Contract Negotiation Handbook; Contract Negotiation Handbook, P. D. V. Marsh
• Author: P. D. V. Marsh
• Edition: illustrated
• Publisher: Gower Publishing, Ltd., 2001
• ISBN: 0566080214, 9780566080210
• Length: 337 pages
• Subjects: Reference / Handbooks & Manuals