Contract Renegotiation

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Steve RowlandAs an entrepreneur, business owner, or senior manager you will sign many contracts with your buyers, suppliers, partners and other business establishments. The contract might have signed according to the prevailing business climate, which seemed good, that time. However, in course of time, business climates change, and so does the best interests of your business!What will you do? You have two clear options either you continue with the same contract and suffer the consequences, or terminate the contract early and incur penalties. Which one should you choose? Whichever you choose, business gurus say, it is you who is going to be the loser. If you continue, you agree to do with a substandard contract that does not work as originally intended and will almost certainly incur unnecessary cost and loss of control. Alternatively, if you can terminate, then there will undoubtedly be financial consequences and additional costs.So, you are a loser, anyway? Wait – there is another option, the third and probably the best.Renegotiating your contract Yes, you can always renegotiate your contract, mid-term on near the anniversary. This will benefit both parties, you and your supplier. How it is done?Start right away, to save time and moneyCollect data on current supplier marketplaceconduct a structured bench marking exerciseAnalyse – identify the features and mechanisms in the contract that will benefit all partiesPlan – develop your strategy, identify your must haves’ and nice to haves’, develop a contingency plan, role play the negotiation, work out your walk away’ point Meet – invite your contracted party to negotiate. Hold a meeting, explain, discuss and renegotiate to your planConvince and renegotiate a new contract!

Renegotiating a contract is not an easy job. It needs a clear strategy a workable plan, preparation, conviction and skills to negotiate. You need to have a team of professionals who can handle entire renegotiation process, right from understanding the need for renegotiation to completing it with a new contract. Without an experienced team, it is unlikely that you will end up with a new contract is no better or you are forced to keep to the status quo or terminate.

Renegotiation of a contract, with expert assistance, can provide an opportunity to improve and enhance aspects that have proved less than effective, and can also open the door to revisiting key areas, such as duration, delivery, management, solutions, technologies and cost.

Our consultants have worked with a wide range of clients and suppliers and negotiated thousands of agreements, overcoming many pitfalls that outsources have had to face. The major challenge being ‘you do not know what you do not know

Do you have the staff, who have the tools, techniques and experience to deliver a successful renegotiation and secure the desired result?

We know it is a tough question. However, eXceeding has the answer. We have a team of experts that has in-depth understanding of the marketplace & supplier landscape, knowledge and experience that is highly skilled in business negotiation!

Leave it to us We’ll do it and get the outcome you wanted!

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