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The Importance of Real-Time Collaboration in Contract Negotiations

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To say that it’s hard to negotiate contracts when the two parties involved are not present at the same time is an understatement. Sadly, because of the current situation, it has become even more challenging to meet and discuss the contents of contracts in person. The good news is that the best contract management platforms allow real-time collaboration. 

In this post, Anapact shares the importance of real-time collaboration when it comes to contract negotiation and how you can implement contract negotiation processes consistently to achieve a positive outcome:

The Importance of Collaboration in Contract Negotiation

Collaboration between the relevant parties is necessary during negotiation. Years ago, this required meeting in person. But real-time collaboration apps and programs make it possible to do it remotely. 

Real-time collaboration lets you streamline the whole contact creation and signing process. It helps reduce mistakes due to miscommunication. It also enables both sides to lay their offers on the table until they reach a mutually agreeable deal. This can be a challenge when you can’t contact the other party. 

For these reasons, real-time collaboration software is necessary for successful contract negotiation in today’s mostly digital world.   

How to Implement Consistent Contract Negotiation Through Online Collaboration

It’s wrong to say that online collaboration is the perfect solution because it is flawed, too. For one, glitches and lags are inevitable. Constant updates may also be necessary. Furthermore, the lack of planning (as many depend on the technology itself) can also lead to problems. 

The good news is that these can be turned around. Here are some tips on how you can implement contract negotiation processes consistently to achieve the best outcome possible: 

Always Start with a Draft

Before writing a formal contract that you’ll use for the negotiation, you should make sure that both parties agree on the main points. A straightforward term sheet is helpful for this. If at any point things get complicated, you can redo the draft and begin on new terms. 

Break the Contract Down in Bite-Size Pieces

It can be overwhelming for someone to have to agree to a hundred terms. That’s just unrealistic. It’s easier to break the contract into “bite-size” pieces that you can negotiation separately. All these make up the larger contract as a whole and can help prevent the “all or nothing” approach in negotiations. 

Make Sure the Initial terms Are Simple

Complex contracts result in complicated negotiations. It’s best to start with simple terms that are easy to understand. You can leave the more complicated ones for later. 

Prioritize Your Main Objectives

You have to know your “why.” Why did you choose the other party to do business with? Why do you need the terms you want them to agree to? You have to go into a negotiation process with a clear idea of your key priorities, the benefits of meeting the terms corresponding to those, and what the drawbacks are if the other party doesn’t agree to them. 

Understand Where the Counterparty Is Coming From

Do your homework to know as much as you can about the other party – their goals, their interests, and other information that can help you understand their needs and motives as well as their pain points. This can help you better align your negotiations with terms that support both your interests. 

Don’t Let Emotions Get in the Way

Remember that you are doing business, so you need to keep it professional. You should keep personal feelings aside and focus on the facts. Be objective when making decisions. As much as possible, take a positive approach. 

Conclusion

Real-time collaboration can help you negotiate contracts faster and more efficiently. This is especially important as we live in a time when most businesses are done remotely. The tips mentioned above will also help you make the most of such collaborations. Hopefully, this enables you to get a positive result. If you want to elevate efficiency, you should get the best contract management platform available to you. 

Anapact offers the best contract management solutions to businesses like yours. We have groundbreaking software that integrates the entire team and reduces risk while streamlining the contract approval process. Contact us today and request a demo!

 

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