Closing the Negotiation The last steps before signing

Introduction Closing negotiations are the final steps before signing. Indications that closing may be possible but some things remain to be negotiated. Closing negotiations are affected by the time of closing and the speed of closing and miscalculations can be costly.

Closing All, or almost all the contents of the contract have been agreed so that negotiations are about outstanding issues. Last chance to make any changes Important because once the contract is signed obligations start to accrue.

Sequence and Preparation At some point in the negotiations there will be signs that closing may be possible. At that point, identify what remains to be agreed. Identify what compromises may be possible.

Is it time to close? Both sides are satisfied the best deal has been struck and no further benefits can be obtained by further negotiation. All outstanding issues can be resolved easily by a concession or a rejection. Intuition plays an important role.

Speed of Closing Rushing to close may raise questions on the other side and thereby delay their agreement. Why is the other side rushing? Are they under pressure? Did we give up something too easily and they want to close before we realize our error? Delaying closure may also raise questions. Why is the other side delaying? Are they putting us under pressure? Do they want us to give up something we refused before?

Compromises Compromises can help resolve the outstanding issues. Compromises at this stage of negotiation are important because failure to compromise is accompanied by failure to sign the deal.

Miscalculations A miscalculation in the time for closure can be very expensive for one or both sides. If the contract is signed but problems develop as a result of a miscalculation, there are means to make changes later, but those can be expensive…it is better to make sure that the contract is as good as it can be.

Follow up Once the contract has been closed and implementation starts, follow up to monitor progress is important.

Conclusion Closing negotiations is the last chance to make agreement and make changes. Once closed, the contract is in force and obligations accrue.