The Contract Negotiator Role
A contract negotiator, sometimes referred to as an employment negotiator, is a type of legal advisor that manages contract negotiations on behalf of organizations. Lawyers in this role may advise, draft, review and negotiate terms on behalf of their clients with respect to employment contracts, business agreements and real estate leases. Contract negotiators typically work both in-house and at law firms. The duties of a contract negotiator range from basic contract drafting and negotiation to detailed work on complex agreements related to international regulations and trade laws. Contract negotiators play a crucial role in a variety of occupations. In a manufacturing environment, for example, a company’s contract negotiator may coordinate with suppliers to ensure that production runs smoothly along a given timetable . In a retail context, a contract negotiator may assist with negotiating leases for new stores or renegotiating terms on an existing location. Contract negotiators may also work with lawyers to structure labor and employment contracts or help negotiate video game licensing agreements. Regardless of context, a contract negotiator’s primary goal is to draft agreements that are easy for both parties to read and understand while achieving the desired goals of their organization. The skills necessary for success in a contract negotiator role include the ability to communicate complicated ideas in clear and concise language and conduct thorough research to ensure that contracts comply with relevant local, state and/or federal laws.
Essential Contract Negotiator Skills
As the name suggests, a contract negotiator’s main role is to negotiate contracts on behalf of their company/organization and their clients. Naturally, then, the main skills necessary to be successful in this position are (1) the ability to communicate well; (2) the ability to think critically; and (3) the ability to negotiate. Contract negotiators must have the ability to explain the terms of the agreement with clarity and in language comprehensible to both the legal and accounting departments as well as any other parties involved, while also being able to comprehend the perspective of the other party. In addition, contract negotiators must be able to build rapport and partnerships with all parties involved in order to facilitate ongoing relationships. Beyond communication skills, contract negotiators must also be critical thinkers and logical analysts to spotlight the issues that could arise during a negotiation, as well as potential solutions to those issues. Additionally, contract negotiators must have intimate knowledge of their company’s position and preferences in order to offer solutions, but also be flexible enough in their thinking and negotiating tactics to find workable solutions for both parties.
Common Responsibilities and Duties
Contract negotiators perform many jobs on the front lines of negotiations, and the duties and responsibilities of these industry workers can vary from position to position. In addition to negotiating and drafting contracts, contract negotiators handle a number of administrative and managerial tasks, as well. Experts in the field say that a typical contract negotiator job description outlines the following categories of duties and responsibilities.
Negotiation
Contract negotiators play the role of lead negotiator at the bargaining table. They explain the process to other negotiators and collaborate with other internal stakeholders to avoid mistakes that could cost their companies millions.
Drafting and Management
Much of their time spent drafting reports, contracts and proposals goes to perfecting details of form and language. They streamline contract drafts and analyze the risks of various terms and clauses to help the company achieve its aims—at the risk of only a minimum level of exposure.
Liaising with Stakeholders
Corporate contract negotiators make it their business to know their company’s goals, objectives, requirements and contract law. They keep the interests of the principal stakeholder in the forefront when negotiating a diversity of contracts on their behalf.
Risk Assessment
Contract negotiators assess the risks each deal poses to their corporation and recommend various risk mitigation strategies for the organization. They do this by looking at the big picture. Negotiators provide summaries of contractual risks and suggest optimum reporting and contract management solutions that can be deployed to reduce risks associated with contracts.
Education and Certification
Regarded as a contract management career path that sits somewhere between corporate counsel and a full-time contracts administrator, the contract negotiator requires an extensive education and in some instances, certifications that go well beyond a basic four year degree to insure success on the job. Because contract negotiators are the last line defense in negotiating terms and conditions, they must be highly experienced in things like due diligence, negotiation processes and contract templates.
Most organizations prefer you possess the knowledge, skills, and abilities normally acquired through completion of an advanced degree in business, law, social sciences, or other related field. While in many instances, a bachelor’s degree will suffice, employers might choose to consider other relevant training or years of experience, in lieu of formal education.
The majority of opportunities also require the contract negotiator have formal training in negotiation, which can often be obtained through professional programs including workshops, seminars or continuing education. Industry organizations, such as the Association for Contract Management Legal Professional, the National Contract Management Association, and the International Association for Contract and Commercial Management often conduct widely recognized training and certification programs for contract managers, administrators, and negotiators.
Certifications offered by the National Contracts Management Association include the Certified Commercial Contracts Manager (CCCM), Certified Federal Contracts Manager (CFCM) and Certified Professional Contracts Manager (CPCM), while the International Association for Contract and Commercial Management currently offers the Certified Commercial Contracts Manager (CCCM) and the Certified Federal Contract Managers (CFCM) certification. Both of which are typically accepted by most private companies as an alternative to a four-year degree.
Career Options and Future Prospects for Contract Negotiators
As businesses place increasing emphasis on structuring, negotiating, and managing complex commercial agreements, the career progression of the contract negotiator comes into greater focus. Entry-level positions often lead to specialized roles where a contract negotiator may focus on specific markets, products, or services, or on particular types of contractual terms and conditions. For example, contract negotiators with specialized experience in public sector contracts may focus their careers on working with government clients in their region. Similarly, contract negotiators with significant training program experience may choose to focus their careers on learning and development or best practices in that area. Contract negotiators with broad experience may be well positioned for advancement into management , either in functional non-legal departments such as procurement or internal corporate business development, or as a senior member of an in-house legal department. Once in these roles, contract negotiators may oversee various functions such as and contract administration, vendor management, and requirement gathering for new solutions or new products. Leadership experience coupled with a strong knowledge of corporate strategy gained from working closely with senior stakeholders in the organization may open opportunities for movement into other positions of increasing responsibility, including roles with greater responsibility for regulatory compliance, business management, or risk management, among others. Given the growing emphasis on enterprise risk management, the future looks bright for contract negotiators who develop the ability to bridge the gap between legal and business issues in their organizations.
Contract Negotiator Challenges
Contract negotiators face a myriad of challenges that can cause the job to become stressful if those issues are not addressed swiftly. Being able to identify these problems is key to keeping everything on a stable path. Some of the more common issues that arise include:
Complexity of Contracts
Contracts do not exist within a vacuum. Various state laws, regulatory guidelines and court precedents impact how contract negotiations and stipulations change from one situation to the next. Navigating these technicalities and staying compliant can be a challenge for even the most experienced contract negotiators.
Affect on Relationships
A heavy emphasis on winning can lead to negotiation tactics that are aggressive or even hostile. Such behaviors can devolve into an adversarial relationship between two parties. If these practices persist, they can eventually burn bridges and sever professional relations with clients, business partners or even co-workers.
Company Policy
There’s a reason why it’s called "negotiation." Adaptability is paramount in understanding both perspectives of a deal and how to utilize the terms to maximize its value. However, it can become difficult to broker a compromise when contractual stipulations directly conflict with company policy.
How to Write a Contract Negotiator Job Description
An effective contract negotiator job description includes several key components. First, be clear on the responsibilities of the position. Detail the specific duties that the negotiator will be expected to do. Be as comprehensive as possible, without being overly long or complex. A job description that is too long will raise a red flag with potential candidates about how demanding the position is, as most applicants will skip any posting that is more than a couple hundred words long. Second, the job description should also include the requirements for the position . For example, if candidates are required to have a J.D. and have practiced transactional law for at least three years, then those qualifications should be clearly stated in the posting. Finally, make sure that the expectations for performance are specified and communicated in the posting. For example, if the negotiator will be expected to review and negotiate a certain number of contracts each month or develop a certain number of strategic relationships, then the posting should clearly state these expectations.