We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.
Finance

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

What Does a Contract Negotiator Do?

By Maggie Worth
Updated: May 17, 2024
Views: 12,007
Share

A contract negotiator works to reach agreement among all parties in a contract. This can include negotiating price or cost, if such factors are a part of the negotiation. It can also include terms such as delivery timelines, mediation, and severability. A contract negotiator may be a neutral party whose only goal is to reach consensus. He or she may also specifically represent one or more of the parties and be primarily interested in negotiating the contract in their favor.

Companies that process a lot of contracts may have in-house contract negotiators. Other companies may hire professionals. In many cases, such negotiators are attorneys or have a certain amount of legal training or experience. Some regulatory bodies offer certificates and certifications in negotiation.

When a contract negotiator is not representing one or more specific parties, he or she should be neutral. This allows a fair review of the terms and provides the opportunity to suggest compromises that work for all parties. In some cases, such neutrality is required, and violation of the neutrality rule, usually in the form of monetary payment or other recompense by one party, can be punishable by law.

In many situations, however, a specific party employs the contract negotiator. His or her job is to protect that party’s interests by “winning” as many of the negotiation points as possible. These points can range from striking entire contract terms to modifying wording to changing the rate of pay or deliverables timeline.

Parties to a contract often classify negotiation points by importance, and the contract negotiator needs to understand which points are critical and which can involve compromise. Often, a contract negotiator sacrifices one or more “nice to have” points in order to win a “need to have” point. For example, a purchaser might prefer a reduced cost, longer payment terms, and a faster timeline, but the most critical factor might be the timeline because of other commitments. The negotiator might ask for all three points but agree to let the cost and payment terms stand in exchange for the reduced timeline.

Much of a contract negotiator’s time is spent in meetings. These might be private meetings with his or her own client or multiparty meetings at which he or she represents a client. He or she might also attend multiparty negotiation sessions with the client.

In addition, the negotiator spends a certain amount of time documenting agreements and concessions. This might occur via e-mail but might also involve physical mail. Documentation of an agreement is extremely important in case of disputes in further meetings, so negotiators generally record very specific information about any discussions as well as times and dates.

Share
WiseGeek is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.

Editors' Picks

Discussion Comments
Share
https://www.wisegeek.net/what-does-a-contract-negotiator-do.htm
Copy this link
WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.

WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.