This contract tip is about how even if we try to keep negotiations friendly, the reality is that some negotiations become antagonistic. The people become emotional, the talks stall for months, and everyone is left feeling a lot of resentment.
I've found that distrust doesn't disappear after signing the deal. It lingers. And it affects the relationship. That resentment may lead to more change orders, refusals to pay invoices, termination threats, and full-blown disputes.
But there are things we can do to defuse the tension ahead:
1. Increase social interaction - We sometimes lose sight of the counterparties are people just like us. Look for ways to humanize the discussions to help both sides develop more empathy.
2. Minimize reliance on negotiations during the contract term - When the parties don't get along, I may adjust provisions that don't depend on mutual trust. So, instead of providing the parties will negotiate price adjustments, I'll use an automatic change based on a price index.
3. Create more objective decision frameworks - Consider whether less discretion is better. With objective criteria, there may be less resentment over decisions made. The parties follow that process.
What other suggestions would you add?