Executing the agreement
A successful negotiation leads to the signing of a contract by the parties after incorporating all the mutual agreements reached during negotiations. Execution of the agreement does not involve just the signing of the contract, but it represents the beginning of the contract?s performance for the deliverables covered in the contract. Hence, a key part of executing a contract (negotiated agreement) is providing performance feedback. Both the contractor and the buyer have responsibilities as per the contract, which they must discharge. Thus, both parties should build upon the success of a negotiated agreement and reaffirm their commitment to pursue future opportunities.
Here we review three categories of conclusion of negotiations between parties:
- Win-Win negotiation: This implies an integrated negotiated agreement. In theory, it means the negotiating parties have reached an agreement after fully taking into account each other?s interests such that the agreement cannot be improved any further by any other agreement.
- Win-Lose negotiation: This is a distributive negotiation whereby one party?s gain is another party?s loss. Both parties are competing to get the most value from the negotiation. It is also known as Lose-Win negotiation.
- Lose-Lose negotiation: This is a negotiation where all the parties in a negotiation fail to recognise or exploit more creative options that would lead to a Win-Win negotiated outcome.