Negotiation Skills. RIBA Future Leaders Course. Chris Fellowes Sean Hummerstone Peter Parten Partner Associate Trainee. May 2012
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1 Negotiation Skills RIBA Future Leaders Course May 2012 Chris Fellowes Sean Hummerstone Peter Parten Partner Associate Trainee Mayer Brown is a global legal services organisation comprising legal practices that are separate entities ("Mayer Brown Practices"). The Mayer Brown Practices are: Mayer Brown LLP, a limited liability partnership established in the United States; Mayer Brown International LLP, a limited liability partnership (regulated by the Solicitors Regulation Authority and registered in England and Wales number OC ); Mayer Brown JSM, a Hong Kong partnership, and its associated entities in Asia; and Tauil & Chequer Advogados, a Brazilian law partnership with which Mayer Brown is associated. "Mayer Brown" and the Mayer Brown logo are the trademarks of the Mayer Brown Practices in their respective jurisdictions.
2 About Mayer Brown Mayer Brown is a global legal services organization advising clients across the Americas, Asia and Europe. Our clients include a significant proportion of the Fortune 100, FTSE 100, DAX and Hang Seng Index companies and more than half of the world s largest banks.
3 Team Chris Fellowes Chris is a partner in the Construction and Engineering Group and has significant experience of both non contentious and contentious engineering and construction matters. His practice focuses primarily on non contentious matters including public and private procurement issues. Sean Hummerstone Sean is an associate in the Construction and Engineering Group and is involved in both non contentious and contentious engineering and construction matters. Peter Parten Peter is a final seat trainee in the Construction and Engineering Group focusing on non contentious construction and engineering matters.
4 What s this all about? Introduction (c.15 minutes) Practical scenario (c.45 minutes) Feedback session (c.15 minutes)
5 The art of negotiation Negotiation The reaching of agreement through discussion and compromise What makes a good negotiator?
6 The art of negotiation Preparation Listening Discuss, don t argue Body language BATNA/bottom line Don t be indecisive Don t ask, don t get (usually) Leverage Manage your time Get it in writing
7 Negotiating styles
8 A global perspective on negotiation Negotiation is very individualistic so difficult to generalise But certain cultural traits may effect negotiation, for example: Direct eye contact in UK & US can show confidence/sincerity but can be considered rude in Japan Punctuality considered important in W. Europe, China and Japan but generally a more laid back approach in S. America, S. Europe and the Middle East Gift giving considered part of a business relationship in Japan and China (but beware Bribery Act 2010!)
9 Some of our experiences of negotiation overseas Hong Kong Negotiating consultants appointments similar to UK Fees usually agreed on a lump sum or time basis, target cost is very rare Middle East India Amicable discussions are culturally preferred Clear and detailed contracts needed to counter ambiguities in local law Negotiations can be protracted, with legal departments heavily involved
10 RIBA: Code of Professional Conduct Principle 2 Competence Realistic appraisal of ability to undertake and achieve any proposed work Terms of appointment, scope and requirements to be recorded in writing, with explanation of fee calculation Guidance Note 4 Appointments: Do not agree to undertake work beyond the firm s competence/resources Fee quotations should indicate extent of services to be undertaken for that fee
11 The scenario Those of you with green dots will be the architect Those of you with red dots will be the client Architects will stay here, clients will go to the room next door You will split into teams of 4 and be given a briefing note and time to prepare as a team Half of the teams will then switch rooms and each architect team will negotiate against a client team Afterwards you will all come back here to feedback but stay in your negotiating groups
12 Feedback 1. Did you reach agreement on 3 main issues? Subject to anyone else s agreement? Did you document it? Any further action necessary? 2. The Fee Fixed or not? Percentage? Payment terms? Capped expenses?
13 Feedback (contd.) 3. Outstanding fees Payment schedule? Any departure from outstanding amount? 4. Interest rate Percentage over base rate?
14 Feedback (contd.) 5. Other outstanding issues raised? i. Copyright licence granted and fee? ii. Contract Admin work agreed? iii. Contract Admin cost estimate kept to? 6. Negotiation Strategy How well do you think you did? How good were your opposing negotiating team? What would you do differently next time? What is the main thing you have learnt?
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