Engineering Professional Programs

There are many kinds of negotiations conducted during a project, including initial contract negotiations with consultants, change negotiations during planning and design, and construction changes. All parties should recognize that negotiations of scope, price, terms, schedule and other factors are key steps in determining the ultimate project quality as well as customer satisfaction.

In many cases, negotiations establish working relationships for the project. The negotiation process can be used to develop mutual respect and to learn the most effective way to communicate, as well as how best to work together. Additionally, experience has shown dramatically that project contracts which have been effectively negotiated result in far fewer incidences of misunderstanding leading to claims and resultant litigation, which in itself is time consuming, frustrating and expensive. As a result, the process of negotiation must be treated with the same level of respect as the preparation and execution of the project.

This short course first addresses some of the concepts underlying successful negotiations, then proceeds to describe the predominant issues and demonstrate steps involved in skillfully managing the process. It will include a variety of lecturettes, demonstrations, case studies, small group negotiation exercises, large group discussions and question and answer forums.You will work in groups on client/consultant and owner/contractor negotiation case studies.

Course Topics

Understanding Project Negotiations

How negotiations contribute to project success

How to set the stage for future negotiations regarding additional services or changes

Preparing for Negotiations

Establishing the scope to be negotiated

Determining the bottom line

Justifying your scope

Determining who will negotiate and their level of authority

How to discuss and agree upon scope before negotiating fee

How to determine which areas of scope are flexible and can be modified

How to determine why the other party is negotiating with you and how to maximize those benefits

Brainstorm the "what ifs" and develop creative options

Internal rehearsals and role playing the negotiations

Conducting the Negotiations

Developing rapport first

Focusing on the issues and the scope, not on the people

Offering justification for the scope and establishing your credibility

Establishing your credibility

Listening to the other party; understanding the needs and interests underlying their demands

Creative options to use with deadlock

Making the other party's decisions as easy as possible

Keeping a tally of the concessions; getting reciprocal concessions

Saying no without breaking down the negotiations

Closing the negotiations successfully

Dealing with Other Party's Tactics

Take it or leave it

You've got to do better

Buy now, negotiate later

No deadline

Short deadline

The nibble

Good guy/bad guy

Limited funds

Standard forms of agreement

Emotional outbursts

Faculty

Anne Smith, P.E., has 25 years experience in consulting engineering. She has a civil engineering background and worked for 15 years as a project manager and marketer with a number of AE firms. She has an advanced degree in applied psychology and extensive training on presentations. She was the Vice President and Director of Training for a 1,500 person AE firm, where she trained and coached architects and engineers in a number of topics and specifically project selection interview presentations. Since 1992, she has been conducting presentation, communication, marketing and management training for engineers, planners, scientists, and architects in organizations nationwide. She has co-authored a textbook, Managing People (Including Yourself) for Project Success, published by Van Nostrand Reinhold Company, New York, and lectures frequently at University of Washington courses.

Continuing Education Units

Course participants will earn .7 CEUs upon successful completion of this course. The CEU is a nationally recognized measure of participation in a noncredit continuing education program that meets established criteria for increasing knowledge and competency.