Renegotiations Doing it all again

Introduction Renegotiation means opening and negotiating a closed contract. If a contract is opened, the whole contract is subject to renegotiation; that is, all clauses are subject to renegotiation even if both parties only want to change one clause.

Sequence Renegotiation should only take place if either or both parties perceive that the original contract has become so unfair that it cannot be fulfilled as originally agreed. Renegotiation should take place while there is still time to remedy any problems that have surfaced One party will approach the other to suggest renegotiation is necessary. The other party may, or may not agree. It is possible that changes can be made without renegotiation.

Preparation for renegotiation Determine that there is a valid reason for renegotiation Determine that no alternative means exist to resolve differences Determine that there is still time to make changes and solve problems by renegotiation

What to renegotiate If changes are needed, but renegotiation reopens the whole contract, other means to effect changes exist: Amendment to the contract Change Orders

Conclusion Renegotiation is not desirable but may be necessary. Other means to change contracts exist and should be used before renegotiation is chosen as the means to proceed.