Preparing for a Contract Negotiation

Understanding FIDIC Sub-Clause 20.1: Claims When dealing with FIDIC contracts, one of the most critical clauses to be aware of is Sub-Clause 20.1. It outlines the process that contractors must follow when submitting claims for time extensions or additional payments. What to be aware of? - Notice Period: The Contractor must notify the Engineer within 28 days of becoming aware of the relevant event or circumstance. If the contractor fails to submit the notice within this timeframe, the claim can be completely lost—this acts as a condition precedent to recovery. - Supporting Documents: After the initial notice, Contractor have 42 days to provide a fully particularized claim, including all supporting documents and contemporary records. The Engineer’s Role: Once the claim is submitted, the Engineer is required to respond within 42 days. The Engineer’s assessment plays a key role in determining whether the claim will be recognized. How important is it to comply? Sub-Clause 20.1 is intended to ensure that claims are raised and addressed during the course of the project. Missing the notice deadline could lead to the employer having a complete defense against the claim, no matter how legitimate the contractor’s grievance may be. The strict timeframes imposed by the clause serve to promote real-time dispute resolution, avoiding surprises after the project’s completion. Common Law vs. Civil Law Approach In common law jurisdictions, the courts tend to uphold time bars if the contract clearly specifies the consequences of missing deadlines. For example, UK courts, in cases like Multiplex Construction v. Honeywell, have confirmed that timely notice helps investigate delays while they are still current. However, in civil law countries, like the UAE, courts may take a more lenient approach. They may consider factors such as good faith or unjust enrichment, potentially allowing claims even when time bars are missed—particularly if enforcing the time bar would lead to unfair consequences. Lessons for Contractors Be Diligent with Notices: Always submit notices within the required 28-day period, even if you’re unsure about the full scope of the claim at the end of the day it is called a notice. Maintain Clear Records: Keep detailed and contemporary records to back up your claims, and ensure that your notices explicitly state that they are submitted under Sub-Clause 20.1 to avoid confusion. Ref: https://lnkd.in/drmG7ctH

GROUND CONDITIONS – OR CONTRACTOR WARRANTY? I’ve recently reviewed a ground conditions clause that should make everyone pause. It didn’t just say “inspect the Site”. That's the normal provision. It said: “the contractor has visited and investigated the Site… and is satisfied as to all risks and contingencies” And then went further: “…enters into the contract based on its own investigations, interpretations, deductions, information and determinations… and has not relied on anything provided by the Employer.” Let’s be clear what’s going on here. This isn’t risk allocation. This is entire risk transfer dressed up as a warranty. The word that matters is: “investigated” “Inspected” is one thing. It's visual. “ Investigated” is something else entirely. It's physical. In practice it implies: • Your own geophysical / geotechnical assessment (not just the Employer's) • interpretation of those subsurface conditions  • evaluation of variability and anomalies using the data you obtain yourself In other words: You didn’t just inspect the Site… you tested it & fully understood it. That’s a very different obligation. Now look at the second limb “Interpretations, deductions, information and determinations” That’s not casual drafting. That’s deliberate. It means: • you interpreted the data which you have (been deemed to) undertook • you made deductions from it  • you formed your own conclusions  • you stand behind them And then the kill shot: “has not relied and will not rely on any information provided…” So Employer sourced: • borehole logs?  • survey data?  • geophysical reports? All “for information only”. So what is left of a ground conditions claim? Very little. Because the clause is effectively saying: whatever is in the ground… you already priced the risk by doing your own investigations. The problem This type of drafting assumes: • a full-blown, comprehensive ground investigation by tenderers  • unlimited time pre-contract to do so • zero uncertainty in ground conditions None of which exist on real projects. Courts have been pushing back Across jurisdictions: • UK – First Tower Trustees  • Australia – Viterra v Cargill  • US – Metcalf / Spearin The trend is clear: You can’t simply disclaim reality. The commercial reality If you push all ground risk onto the contractor: You don’t eliminate the risk. You just kick the can down the road. Or worse: You underprice it and argue about it later. The better question Instead of asking: “How do we draft this risk transfer away?” Ask: “Do we (jointly) actually best understand the ground?” Final thought When you see: • “investigated”  • “deductions”  • “no reliance” You are no longer looking at a balanced ground conditions clause. You are looking at a ground risk transfer mechanism. So behave accordingly.

Negotiation isn’t about price – it’s about psychology. Here are 20 ways to win the mind game.👇 Negotiation isn't just for sales teams and boardrooms. It's a core leadership skill. Let’s break down 20 of the most effective strategies: 1 - Rapport before requests ↳ People say yes more easily when they like and trust you. 2 - Focus on conditions, not just price ↳ Often, success hinges on timelines, guarantees, or scope. 3 - When talks stall, change approach ↳ Don’t push harder. Instead, switch frameworks, ask a new question, or change who’s at the table. 4 - Anchor first, then move in small steps ↳ Setting the first number shapes the entire range, and each small move signals your limits. 5 - Slow the pace. Rushed talks = bad deals ↳ Time pressure leads to mistakes; calm, deliberate negotiation leads to clarity and strength. 6 - When someone asks for a discount, ask “why?” ↳ Sometimes asking for a discount is just a reflex. If your price is fair, stick to your guns. 7 - Listen first: Make the first minutes about them ↳ Understanding their needs gives you leverage and makes them feel heard. 8 - Act like the customer - even when you’re selling ↳ This flips the power balance between buyer and seller. 9 - BATNA (Best alternative to negotiated agreement) ↳ Knowing your best alternative gives you confidence and keeps you from accepting a bad deal. 10 - At the start, agree on a common goal and timeline ↳ Alignment on outcomes avoids confusion and sets a collaborative tone. 11 - Use silence as a tool. Say your point, then let it land ↳ Once you made your offer, stop talking and let the other side respond. 12 - Mirror their last few words. “Pressure around timing?” ↳ Mirroring builds instant rapport and often reveals useful information. 13 - Set the agenda. It’s a quiet way to shape the outcome ↳ Framing the discussion gives you early control and clarifies expectations. 14 - Bring multiple offers to the table. Optionality = leverage ↳ Create three variations of your core offer to segment customers. 15 - Frame your offer as an investment with return, not a cost ↳ ROI beats expense every time. 16 - Write down the agreement. If it’s not on paper, it’s not real ↳ Documentation creates accountability. 17 - Use strategic reciprocity. Give to get. But give deliberately ↳ Give something they value, but do it with intention—never randomly. 18 - Clarify language. “What do you mean by premium service?” ↳ Vague terms lead to mismatched expectations - ask for precise definitions. 19 - Ask at the beginning: “What’s the biggest obstacle you see?” ↳ Uncover objections early, before they derail the process later. 20 - Find out what’s important to them. It may not be the price ↳ Sometimes it’s speed, status, security, or support—ask, don’t assume. 🧭 What's your favorite negotiation tactic? ♻️ Repost to help someone and follow me Oliver Aust for daily strategies to communicate like the top 1% of CEOs.

You know that sinking feeling… Someone interrupts your carefully prepared presentation with “But what about...?” and raises a point you never considered. Everyone is looking at you, and you feel the weight of the world on your shoulders. In that moment, the idea or solution you’ve been presenting weighs in the balance. Address the resistance well, and your idea will likely be adopted with even more optimism than before. Address it poorly, and your idea is as good as gone. Here’s a quick overview of my “RAP” formula that you can use in these moments to turn blindside objections into “aha” moments. 1. R: Recognize the type of resistance you’re facing: - Logical resistance (conflicting data or reasoning) - Emotional resistance (values or identity challenges) - Practical resistance (implementation concerns) 2. A: Address it proactively in your presentation: - For logical resistance: Acknowledge competing viewpoints before they’re raised. "Some might point to last quarter’s numbers as evidence against this approach. Here’s why that perspective is incomplete..." - For emotional resistance: Connect your idea to their existing values. "This initiative actually strengthens our commitment to customer-first thinking by..." - For practical resistance: Demonstrate you’ve considered the real-world constraints. "I know this requires significant change. Here’s our phased implementation plan that accounts for..." 3. P: Provide a path forward that transforms resistance into alignment: - Give them space to voice concerns (but in a structured way) - Incorporate their perspective into the solution - Show how addressing their resistance actually strengthens the outcome The most powerful thing you can say in a presentation isn’t "trust me", it’s "I understand your concerns." When you genuinely see resistance as valuable feedback rather than an obstacle, you’ll find your ideas gaining traction where they previously stalled. #CommunicationSkills #BusinessCommunication #PresentationSkills

Most of our interactions—especially the difficult ones—are negotiations in disguise. In their book Beyond Reason, Roger Fisher and Daniel Shapiro highlight how success in these conversations often comes down to addressing core concerns—deep, often unspoken emotional needs that shape how people engage. These concerns are: Appreciation, Affiliation, Autonomy, Status, and Role. Ignore them, and you’ll likely face resistance, disengagement, or frustration. Acknowledge and address them, and you create the conditions for stronger relationships, better problem-solving, and more win-win outcomes. I’ve learned this the hard way. Appreciation A senior leader I worked with was frustrated by pushback from his team. The problem? He was so focused on driving results that he rarely acknowledged their efforts. Once he started genuinely listening and recognizing their contributions, engagement skyrocketed. The team felt heard, and collaboration improved instantly. Affiliation A new CEO walked into a fractured leadership team—siloed, political, and mistrusting. Instead of pushing quick solutions, she focused on rebuilding connections, creating shared experiences, and reinforcing that they were one team. The shift in culture transformed their ability to work together. Autonomy A department head was drowning in tactical decisions because his team constantly sought approval. By clearly defining goals, setting guardrails, and empowering them to make decisions, he freed up his time and saw his team step up with more confidence and accountability. Status A high-potential leader felt overlooked and disengaged. His boss didn’t give him a raise or a new title but started including him in key strategic meetings. That simple shift in visibility changed everything—he became more invested, more proactive, and took on bigger challenges. Role A VP was struggling, not because of a lack of skill, but because she was in the wrong seat. When her boss recognized this and shifted her to a role better suited to her strengths, she thrived. Sometimes, people don’t need a promotion—they need the right role. Before a tough conversation or leadership decision, check in: - Am I recognizing their efforts? - Making them feel included? - Giving them autonomy? - Acknowledging their status? - Ensuring their role fits? Addressing core concerns isn’t about being nice—it’s about unlocking the best in people. When we do, we create better conversations, stronger teams, and real momentum. #Conversations #Negotiations #CoreConcerns #Interactions #HumanBehavior #Learning #Leadership #Disagreements

“I Don’t Think We Can Afford You.” That’s what the CEO said after I delivered a pitch to train their leadership team. I smiled and said, “Fair. But can I ask—what’s the cost of having untrained leaders make one wrong decision?” Pause. The energy shifted. I didn’t argue. I asked. I didn’t push. I anchored. Negotiation isn’t about winning. It’s about understanding leverage, timing, and psychology. Here’s what worked in that moment: 1. Anchoring: I reframed the cost—not of hiring me, but of not hiring me. 2. Scarcity: I gently mentioned my limited slots (truthfully)—people pay more for what’s rare. 3. Mirroring: I used their language and pace to build rapport. 4. Reciprocity: I offered a one-time bonus masterclass if they signed that week—value first. 5. Loss Aversion: Humans are wired to avoid loss more than they are to chase gain. I let that psychology speak for me. We closed. Full fee. No discount. 6-month retainer. Negotiation is not about being louder. It’s about being smarter, calmer, and more psychologically aware. Train your voice. Train your presence. And most importantly—train your mind. #NegotiationSkills #ExecutivePresence #SoftSkills #CommunicationCoach #Psychology #LeadershipDevelopment #CorporateTraining #LinkedInInfluencer

No one ever tells you that the hardest objections to overcome are the ones you never hear. These silent objections kill deals. They are doubts, hesitations, and unspoken concerns that go unaddressed. Prospects don’t feel comfortable sharing them. Maybe they don’t trust you yet. Maybe they don’t want to hurt your feelings. Maybe they’re comfortable with the current way. Maybe they worry about how change could affect their standing. The best salespeople don’t wait for concerns to be voiced. They bring them up first. “It feels like you might be wondering if this is worth switching for.” “It seems like staying with what you have feels like the safer option right now.” “It sounds like you’ve seen similar solutions that didn’t work out.” “You might be wondering what happens if this doesn’t work and it reflects on you.” When you name the unspoken, you make it easier for prospects to open up. Chris Voss calls this labeling, giving a name to what someone is feeling so they feel understood. If you guess wrong, people will correct you. If you’re right, they’ll confirm. Either way, you unlock more truth. When people feel understood, they are more likely to share what is really on their mind. No truth, no transaction.

I’ve been speaking with a lot of female founders this month and, when I talk about what I do, I’m almost universally dealt with groans of frustration or fatigue at dealing with contracts. But it’s an inevitable and important (even if it doesn’t seem like it) part of running a successful and sustainable business. Good contracts help you: get paid on time, get what you need from your suppliers on time, protect your assets and (boringly but critically) comply with your obligations. But lengthy contract negotiations are an expensive and time-consuming distraction from running your business. SO here’s some top tips on how you can take some of the pain out of negotiating contracts: 1️⃣ Figure out what is actually important to you. In most engagements, there will be 2 - 5 key commercial things that you are looking to get out of the contract. If you’re an agency providing services to a customer, those things might be: payment in full and on time, protection from scope-creep and protection of your IP until payment. These issues become your North Star during contract negotiations, and show you where to focus your efforts and attention. They can help you identify where you can concede issues that are less important to you, and where you need to dig your heels in. 2️⃣ Don’t sweat the small stuff. No document is perfect and it can be very satisfying to mark up corrections to typos or where something could be worded better. But if these things don’t change the legal effect of the contract, make like Elsa and let it go ❄ . 3️⃣ Talk it out. Going back-and-forth in comments on a document is confusing and a lot of nuance is lost in writing. To avoid hitting a stalemate or endless turns of a document to reach a resolution, jump on a call to run through the contract and get in-principle agreement on key issues. It’s often faster, clearer and easier than other negotiation formats. 💡 Pro tip: Create a contract playbook. This one is much harder to do than the others, but it’s not impossible and it doesn’t need to be overcomplicated. Creating a simple word document of your standard positions, and any fallback positions that you find yourself agreeing to again and again can help you streamline your future negotiations and review your templates to identify where you can remove friction points. Or, if you’re really stuck, give me a ring and let me sort it out for you 😉 And I’m putting some resources together to make this easier including a contract checklist and a template contract playbook, so keep an eye out 👀

After coaching the #1 sales reps at companies like Salesforce, HubSpot, and dozens of Fortune 500s…. I've noticed a pattern. Elite performers don't get better at handling objections, → They get better at preventing them. Here's how they handle the 7 most common deal killers. 1. "Your price is too high" This objection means one thing: perceived value < price. Average reps respond by desperately defending their pricing: "Well, we're more expensive because of X, Y, Z..." (creating more resistance). Elite reps prevent this by running a discovery process that quantifies: → True cost of inaction (what happens if they do nothing?) →Opportunity cost (what are they missing out on?) →Potential ROI (10X value compared to price) 2. "I need to think about it" This classic stall tells you nothing about what they're actually considering. Elite reps respond: "I completely understand. To make sure I'm giving you what you need, can you share specifically what you're thinking about?" Then they shut up and listen. The prospect's answer reveals the actual objection that needs addressing. 3. "I need to run this by my CEO first" If this surprises you, you missed uncovering all stakeholders early in your process. Elite reps ask: "If it was only up to you, would you move forward?" If they hesitate, they're not truly sold. If they are convinced, coach them for the conversation: "When you talk to the CEO, what concerns might they have? How will you address those concerns?" This transforms your champion into a prepared advocate who can sell internally for you. 4. "We don't have budget" When prospects truly see 10X value, they find the money. Personal example: When my parents found out I needed surgery for a broken finger as a teenager, they had zero budget for it. But the cost of inaction (permanent damage to my hand) was so high they found thousands of dollars. If your prospect truly believes your solution solves a critical problem, budget objections disappear. 5. "This isn't a priority right now" Average reps can only sell to prospects with active pain. Elite reps transform latent pain into active pain by helping prospects see the true consequences of inaction. If you're consistently hearing "not a priority," you're failing to elevate pain levels in your discovery process. 6. "We're considering Competitor X" Never trash talk competitors. Elite reps ask: "Based on what you've seen so far between us and them, which way are you leaning?" Their answer will reveal exactly what matters most to them and where you need to differentiate. 7. "I need to speak with your customers first" This is an uncertainty objection. Find out what they're really uncertain about: "I appreciate that. When you speak with our customers, what specifically do you want to find out?" Their answer reveals what you missed building confidence around earlier. When you thoroughly uncover pain, quantify impact, and build value upfront, objections rarely surface.

When negotiating, do you think the big wins happen at the table? They don't! The real magic happens before the first word is spoken. Success in 80% of negotiations is due to preparation. It's taking small steps to control the process, foresee challenges, and set small goals. I coached a procurement manager stuck in a deadlock with a supplier. Both sides had drawn firm lines: • The supplier demanded upfront payments. • The procurement team refused. • They feared cash flow issues. For weeks, the talk had gone in circles. It made no progress. When I stepped in, I asked one question: “𝙒𝙝𝙖𝙩 𝙙𝙤𝙚𝙨 𝙩𝙝𝙚 𝙨𝙪𝙥𝙥𝙡𝙞𝙚𝙧 𝙧𝙚𝙖𝙡𝙡𝙮 𝙣𝙚𝙚𝙙?” The team realized the supplier's main concern wasn't money. It was to reduce delivery risks. By focusing on interests, not positions, we found a solution: 𝗔 𝘀𝗺𝗮𝗹𝗹 𝘂𝗽𝗳𝗿𝗼𝗻𝘁 𝗽𝗮𝘆𝗺𝗲𝗻𝘁, 𝗽𝗹𝘂𝘀 𝗺𝗶𝗹𝗲𝘀𝘁𝗼𝗻𝗲 𝗽𝗮𝘆𝗺𝗲𝗻𝘁𝘀 𝘁𝗶𝗲𝗱 𝘁𝗼 𝗱𝗲𝗹𝗶𝘃𝗲𝗿𝘆 𝗽𝗵𝗮𝘀𝗲𝘀. The result? The deal closed in two days, with terms that worked for both sides. That negotiation taught me this: →  Preparation isn't just logical. → It's also strategic and emotional. I'm happy to share here how I prepare for a negotiation: 𝗦𝗲𝘁 𝗦𝗠𝗔𝗥𝗧 𝗴𝗼𝗮𝗹𝘀 𝗳𝗼𝗿 𝗲𝘃𝗲𝗿𝘆 𝘀𝘁𝗮𝗴𝗲. • Be Specific, Measurable, Achievable, Relevant, and Time-bound. • No vague goals like “get the best deal,” aim for concrete outcomes: → Add a long-term partnership clause → Reduce delivery timelines by 10% → Secure flexible payment terms 𝗙𝗼𝗰𝘂𝘀 𝗼𝗻 𝗶𝗻𝘁𝗲𝗿𝗲𝘀𝘁𝘀, 𝗻𝗼𝘁 𝗽𝗼𝘀𝗶𝘁𝗶𝗼𝗻𝘀. • Ask, why does the other side want this? • When you negotiate based on interests, you create options that meet both parties’ needs. 𝗣𝗿𝗲𝘀𝗲𝗻𝘁 𝗠𝘂𝗹𝘁𝗶𝗽𝗹𝗲 𝗼𝗳𝗳𝗲𝗿𝘀 (𝗠𝗘𝗦𝗢𝘀) • Successful comes with always having options ready. For example: → Offer A: A 5% discount for upfront payments. → Offer B: Standard payment terms and extended service coverage. If you present choices, you reduce deadlock and keep control of the conversation. 𝗨𝘀𝗲 𝗘𝗺𝗼𝘁𝗶𝗼𝗻𝗮𝗹 𝗜𝗻𝘁𝗲𝗹𝗹𝗶𝗴𝗲𝗻𝗰𝗲. 𝗡𝗲𝗴𝗼𝘁𝗶𝗮𝘁𝗶𝗼𝗻 𝗶𝘀𝗻'𝘁 𝗷𝘂𝘀𝘁 𝗹𝗼𝗴𝗶𝗰—𝗶𝘁'𝘀 𝗮𝗯𝗼𝘂𝘁 𝗰𝗼𝗻𝗻𝗲𝗰𝘁𝗶𝗼𝗻. • Practice self-awareness to stay composed under pressure. • Show empathy to build trust. • Use "Feel, Felt, Found" on objections, and it'll guide decisions. Negotiation is like a dance. Both sides need to move in sync, adjusting their steps as they go, to create a harmonious outcome. And the best dances are choreographed long before the music starts. So, what’s been your biggest negotiation breakthrough? Have you ever unlocked a deal by shifting focus from demands to solutions? Found success by preparing better than your counterpart? Drop your story in the comments—I’d love to hear it. Or DM me if this resonates with a challenge you’re navigating. Let’s talk about what works.