Who Should Negotiate Your Contracts?

PSMJ Resources, Inc.
Posted on: 07/02/19
Written by: PSMJ Resources, Inc.

pen and paper-1-288007-edited.jpg

Whoever negotiates a contract for your architecture or engineering firm should be the one most familiar with the client, having become well acquainted through your marketing, client research, proposal, and presentation.

Your negotiator also should be:

  • Familiar with the marketing efforts to date;

  • Authorized to commit the firm;

  • Able quickly to analyze the financial impact;

  • Able to handle ambiguity well and keep 14 balls in the air; and

  • A natural salesperson who can motivate both sides toward closure.

Does this mean assembling a whole team of people? Not necessarily. The best negotiators can handle ambiguity well. They don't mind working to resolve many issues, and no single issue is resolved until all issues are.

It's dangerous for one person to conduct a negotiation. A second person can watch for reactions; think while you talk; interrupt if you're going off in the wrong direction; and provide perspective.

Two is the optimum number of people for most negotiations, with three being the maximum. Beyond that, the logistics of coordinating roles and inputs becomes burdensome for most project situations. Group negotiations are appropriate for large, complex projects. Ideally, the project manager will be a key member of the negotiating team.

One mistake you'll probably regret is turning over the negotiation to a team of professional negotiators. It's virtually impossible to inspire a “relationship” negotiation if the people on your team don't know the individuals on the other side, and are motivated in a single direction, such as financial, performance, or design.

 

 

PSMJ_2019-Seller-Doer-IconSelling A/E/C services can be a scary concept for many architects and engineers never exposed to step-by-step instructions PROVEN to work. PSMJ’s new  A/E/C Seller-Doer Success Bootcamp is the essential training program for turning creative and technically skilled staff into enthusiastic sales engines for your firm. Over two intensive and interactive days, acquire techniques and confidence to radically shift thinking and embrace a new and valuable role that can dramatically improve your balance sheet.

Register Now!

 

SUBSCRIBE TO BLOG:
June 4, 2026

Do It Right: What AI Means for M&A of Architecture, Engineering, and Construction Firms

What Architecture, Engineering, and Construction Leaders Must Know About IP, AI, and the New M&A Landscape In the last few months, PSMJ has noticed a clear crescendo in our..

Read More
June 4, 2026

Compensation Snapshot: AE Project Manager

The Profile of a Project Manager based on PSMJ’s 2026 Compensation Benchmark Results The role of the Project Manager in an AE firm has evolved from primarily managing timelines..

Read More
June 2, 2026

5 in Five: Professional Development Programs are NOT optional anymore!

As we just wrapped up our annual AEC TalentMAX conference, where hundreds of AEC talent acquisition, development, and knowledge management professionals gathered to explore what..

Read More