Negotiation skills from the PM's perspective

Abstract

The procurement process of a project or program typically involves in its initial steps the performance of bidder conferences, on which potential sellers are gathered in order to understand the main proposal and future contract requirements. The outcome of such meetings for the contractor is a clearer overview of the most proficient sellers, which are therefore given priority during the contract bidding process. In this regard, not only understanding the procurement process from the buyer’s perspective, but also developing appropriate negotiation skills is essential for a Project Manager to optimise their chances of obtaining contracts as a seller or service provider. For instance, being able to ask relevant questions about the concerned project or program may indicate experience and professionalism. Likewise, building up traditional relationships with contractors shall be prospective operationally wise in the long term. Establishing a proper negotiation strategy is, therefore, perceived to be significant for a project manager to increase their opportunities of acquiring contracts as a service provider.