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\nShould a Project Manager Get Involved in Contract Negotiations?\n

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\nShould a Project Manager get involved in Contract Negotiations? This is the essence of a question I was asked.If we leave the negotiations entirely to procurement teams, then decisions will be based on:• Procurement rules• Simplistic...\nShould a Project Manager get involved in Contract Negotiations? This is the essence of a question I was asked.


If we leave the negotiations entirely to procurement teams, then decisions will be based on:
• Procurement rules
• Simplistic measures of value like cost

I would argue we should lead the negotiations
This leaves the procurement team free to act as enforcers and 'bad cop' over essential but technical details. For example:
• final price,
• detailed Terms and Conditions, and
• the wording of the contract.

Things go wrong...
But we should also be ready to step in again if later stages threaten to derail an important relationship over a petty detail.
Remember, what matters is that we deliver our projects. Everything else is just process and tactics.

The PM and Procurement Manager are on one team. So, plan your procurement campaign accordingly. Each of you should play to your own expertise in the greater interests of the project and your organization or client.

Your Project Sponsor can play a valuable role in contract negotiations. Here are two valuable contributions:
1. Closing the negotiation, to get a last concession, and
2. Handling an intransigent Head of Procurement. One who wants to put a pointless policy ahead of doing the right thing.

Context...
You might argue, correctly, that this is context-dependent. Bigger, more complex negotiations are more likely to need your intervention. For basic and fairly standard contracts, you can let the procurement team rely on policy, and leave it to them.
However, in my experience, as soon as negotiations start, people focus on positions. These are often long-standing. And that can lock up the process.

Balance...
By the nature of projects, we're often trying to do something new. Your job is to focus on the interests of the project. It is not the role of procurement professionals to innovate, but to protect.

As in everything, the secret to success is balance, and working together is the best way to find it.

Your responsibility is simple. To deliver your project so that your organization or client can gain the benefits and value it planned for. If that means diving into the procurement process – and I believe it does – then get ready to dive.\n
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4:55
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Grade
10th - Higher Ed
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Subjects
Career & Technical Education
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Source:
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\nOnline PM Courses\n\n
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Date
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2022
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Language
English
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negotiation
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contract negotiations, contract negotiation, contract negotiation skills, project management, project manager, negotiation skills, procurement management, project management skills, procurement, procurement process, procurement manager, procurement team, project manager roles and responsibilities, project manager job, contract management, contracts and procurement, contract strategy, building a contract, contract, valuable, question, argue, project, team, policy, thing, basic, simple, sponsor, wrong, process, organization, important, positions, role, involved, absolutely, matters, ready, deliver, projects, play, client, context
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