Art Of Negotiation In Construction Marketing

You are in that crucial pre-contract interview and objections start to fly. How do you handle the delicate business of negotiation? Construction management can often miss crucial elements of winning the tender especially at this stage in the process.

Decades ago it was assumed that objections would always arise during the course of that crucial interview with a prospective client. The contract could be won or lost at this point.

This would tend to happen, because the construction marketing process was more prescriptive, one-way, and less empathic. Anyone who knows construction marketing these days will know that landing a lucrative contract is far more about building relationships and understanding the requirements of the potential client than just walking through a presentation formula. So the need to overcome objections is not such a prevalent feature of the selling process.

Nevertheless objections do arise in that sometimes turbulent journey towards getting that order and signing the contract.

Here are my ten tips for negotiating the crucial moments leading up to finalising the deal:

1. Speak with clarity. If at the pre-contract interview objections are raised, you should clarify each one by re-stating the objection back to the person who raised it, to establish the precise nature of the objection. "Am I understanding you correctly, you are saying that... "

2. Expose misconceptions. Some objections result from misunderstandings or misgivings that have arisen because of lack of information ahead of the meeting, so these need to be exposed and explored confidently and without feeling threatened.

3. Build bridges. Always be conciliatory in your approach. So when objections arise, see them from the point of view of the other person. Stand in their shoes and meet them where they are.

4. Avoid jargon. The language we use in the negotiating process will necessarily involve some technical speak. However, do not do this to impress but to inform.

5. Leave yourself room to move. If you sense that the main sticking point is a budgetary issue, you may want to offer some advice about value engineering to enable your client to see you are will to meet them halfway.

6. Acknowledge the objections. Be honest about areas of difficulty that both parties are facing and write down possible solutions without making promises you can't keep. If necessary, acknowledge the problem and move on with the rest of the agenda, promising to come back to it when other issues are resolved. This way, the objection may not seem nearly so big as when first discussed.

7. Shape your proposal. When you sense you could lose the contract because of an immovable problem, look at ways of shaping your proposal to fit the expectations of your client. You do this by understanding the problems they need to overcome. If they feel you hold the solutions to these problems, you will win the contract.

8. Avoid head-to-head. Don't get into an argument! Keep calm, cool and collected and don't get emotional or personal arguments.

9. Keep notes. Every meeting should be minuted to ensure accuracy in what was agreed by both parties. You may need to clarify a point at a later stage and certainly any future contractual arrangements will need to reflect the agreement of both parties, so keeping good records at this stage is vital.

10. Agree a course of action. You will be sensing a positive or indeed a negative outcome at this stage of the proceedings. However you feel, do not let these emotions show. Be positive, and agree a course of action that is acceptable to both parties. Always keep the door open.

In these days of economic recovery following years of recession, we are cautiously discovering again how to win that contract confidently. Never present yourself as the underdog, desperately seeking the work to survive. Offer straightforward solutions with integrity and promise only what you can deliver.

Steve is an experience Business Development expert in the construction industry. He is also involved in social media marketing for small business. Construction Marketing

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