You're negotiating a contract with unrealistic demands. How can you effectively manage expectations?

I use the Scotwork methodology (Partially described below) - a customer requested us the delivery an order in 2 months even though the required production time was 4 months: 1. Preparation - where we clearly established my objective (feasible timeline and budget) and my limits 2. Opening - positioned us by communicating firm limits 3. Proposing - where we made and justified the proposal (a 4-month timeline with a budget of X EUR - Industry standards for similar projects typically range from 4 to 6 months) 4. Bargaining - where we made a concession (if the timeline is non-negotiable, add budget and meet a shorter deadline) and we showed flexibility (we can reduce the scope of the project to meet the 4-month deadline without increasing costs)

One effective strategy for managing expectations in negotiating contracts with unrealistic demands is to conduct thorough research and preparation before entering into negotiations. By gathering as much information as possible about the other partys needs, constraints, and objectives, negotiators can better understand where compromises can be made and where boundaries need to be set. Additionally, it is important to clearly communicate your own priorities and limitations from the outset to avoid any misunderstandings later on.

In my experience, to assess the feasibility of requests and the related legal risk, the most operational and effective methodology is to carry out a RACI.

Such a client is acting transactionally, i.e. in an adversarial mode with its contractors. So first evaluate a no-go in this project, and pick up a better one. If you choose to go, negotiate as smart as you can, and be prepared for disputes, conflicts and problems anyway in the delivery phase. --> Projects are all and always collaborative endeavors between client and suppliers. This collaboration must take place well before the contract negotiation day.

Here are some facts before you negotiate: You have to carefully identify whether those demands are arising out of the company’s view or the person’s view negotiating against you. If it is arising from the person, it is easy to divert from that point. If it is arising from the company’s own views, you have to question how important doing business with that particular company is on the paper. There are a lot of parameters to take into account; technical competence, logistics, after sales etc. Then you have to convince that unrealistic demands is not an icebreaker for the business you have or might have.

All comments are valid, the real question is, “when do you walk away?” You always have the right of escalation to higher authority to seek alternative positions / compromises, you can also force the counter party to consider an alternative so they too have to return to the table with another commercial view. Not easy, but this example does illustrate the value of having a BATNA / an alternate market option. Personally I would walk away and inform the counter party that further negotiations are possible provided certain positions are softened. In that way you retain control of the process.,

Present some case studies and quantify the business continuity risks that will arise. If that still doesn't change, pursue a lobbying strategy to get additional support to cover what the contract doesn't cover.

To handle unrealistic contract demands, start by assessing if they’re feasible and communicate that upfront. Open a transparent communication channel where you share both sides’ needs and constraints. Suggest alternative solutions that meet the core interests of both parties to find common ground. Use your expertise to provide context and set realistic expectations based on industry standards. Clearly define what’s non-negotiable to avoid misunderstandings. Stay patient and avoid rushing the process, ensuring you take the time needed to reach a fair agreement. This approach helps create a collaborative environment and leads to more successful negotiations.

Everybody involved in the deal has always take „market standards“ into account, despite you always have to try to achieve „sky is the limit conditions“ for your client!

It's important in contract negotiations to know when to be open, and when to be closed. Having clarity around your expectations, being open around where your boundaries are helps to set a direction for the duration of the contract negotiation.

In my experience, it's essential to define clearly in the contract the operational terms that will be used throughout the project by the teams. Agreement on the definitions of terms and operational objectives will ensure constructive cooperation throughout the project.

Initiating an open dialogue in negotiations is a key strategy for achieving mutually beneficial agreements and below are the benefits. Builds Stronger Relationships: Open and honest communication nurture trust and strengthens relationships. Improves Mutual Understanding: Ensures that both parties recognise each other’s viewpoints and limitations. Simplifies Problem-Solving: A co-operative approach inspires creative problem-solving and the growth of mutually beneficial solutions. Reduces Misinterpretations: Clear and jargon-free communication reduces the risk of misinterpretations and conflicts. Encourages Sensible Expectations: Establishing genuine expectations initial stage, avoids forthcoming dissatisfactions and disagreements.

First off you never negotiate unreasonable expectations. Obviously your sales team has not done their due diligence. Not all business is good business. I do not negotiate price because the price offered is what it costs to bring our value to the client. It’s that simple.

If one of the two parties in a negotiation insists on unrealistic results, then it's hardly a negotiation at all. It resembles a situation where an overbearing person demands that things go their way. I agree that, the situation should be brought into a stage where there's an actual negotiation and that requires understanding why the overbearing person acts the way they do. They must feel seen and heard, and truly so. Not for the sake of winning the negotiation but for actually helping them (and you) evaluate whether what they're asking is feasible and you can deliver. What I've found helpful is utilising the innocuous open-ended questions to ease tension and uncover the true motives behind unrealistic demands.

Clearly define what you can and cannot agree to before entering negotiations.Collect all relevant data and benchmarks to support your position, including industry standards, costs, and constraints.Understand the other party's needs, motivations, and constraints. This helps in finding common ground and identifying areas for compromise. Start the negotiation by building rapport and trust. This sets a positive tone and fosters a collaborative atmosphere.Seek to understand the rationale behind their demands by asking open-ended questions. Clearly communicate your concerns about their demands without dismissing them outright.

Open Dialogue: Initiate an open dialogue by expressing your understanding of their needs while explaining your constraints. This creates a collaborative atmosphere where both parties feel heard. Articulate your points clearly and avoid technical jargon that might confuse non-experts. By demonstrating empathy and a willingness to find common ground, you encourage the other party to reciprocate, paving the way for more reasonable expectations and a contract that both sides can agree upon

Active Listening: Listen to the other party’s needs and concerns, showing that you understand their perspective. Collaborative Approach: Engage in a collaborative discussion to find mutually agreeable solutions.

In general, people welcome straight talking, as long as it's done respectfully and with the benefit of experience and knowledge. It works both ways. If you create expectations that might not be deliverable, you can create pressure for yourself that can lead to a risk of taking chances that can harm both parties. Don't get drawn into promising over delivery, particularly if you're not entirely on top of the topic. It probably won't work out well. Commit to what you can deliver, no more than that. Do that and you will be respected. It's the key to securing long term and mutually beneficial business relationships which will serve you well. A client who demands you to promise all that they want, deliverable or not, is not worth having.

When dealing with unrealistic requests, providing alternatives can make a big difference. Instead of simply saying no to proposals, suggest creative solutions that meet the fundamental needs of both parties. This demonstrates your dedication to finding mutual ground and your ability to solve problems. Having several alternatives prepared in advance can transform tense negotiations into collaborative brainstorming sessions. The goal is to find a solution that everyone feels good about, turning potential deadlocks into win-win situations.

When there are demands that you feel are unreasonable, it is important to offer alternatives to the client to help meet somewhere in the middle. This will show your willingness to comprise and hopefully the client will see this and do the same.

Offering alternatives is a crucial strategy in negotiations, particularly when initial demands are unrealistic. By offering thoughtful and feasible alternatives, can establish resourcefulness and a co-operative spirit, turning potential conflicts into opportunities for mutually beneficial solutions. This approach not only improves the probability of accomplishing an agreement but also strengthens the long-term relationship between the negotiating parties.

When the other sides demands are unrealistic, the best solution so far that works for me is to offer some alternatives with your point of view (why this would be better and etc.). I have made few times the graphic board (when dealing with big players and big contracts) - one line is for other side demand (“the unrealistic one”), one line - for our offer, one line - for arguments. It worked all the time✔️

Reach for new opportunities if you feel a dead lock in order to push the deal through. Let the other side see that you are dovish.

Present multiple scenarios where different sets of demands are met, showing the implications of each. This allows the customer for a more flexible and informed decision-making process. Instead of simply saying "no," suggest alternatives that add value in different ways. For example, if a deadline is unrealistic, offer additional resources to meet it or propose a phased delivery. Be open, but know where to draw the red lines.

Assess Reality: Please evaluate the feasibility of demands and let us know early if they are unrealistic. Open Dialogue: Express understanding of both parties’ needs to create a collaborative atmosphere. Offer Alternatives: Suggest creative solutions that meet underlying interests. Leverage Expertise: Use your professional knowledge to guide discussions and build credibility. These strategies can help you navigate challenging negotiations effectively.

When negotiating a contract with unrealistic demands, start by clarifying and assessing the feasibility of the demands. Share industry standards and relevant case studies to set a realistic baseline. Highlight potential risks and suggest alternative solutions that achieve core objectives more realistically. Use data to support your points and engage in open dialogue, actively listening and collaborating to find agreeable solutions. Set clear boundaries, include specific contractual clauses for contingencies, and maintain transparent communication with regular updates. Document all agreements to avoid misunderstandings. This approach ensures expectations are managed effectively and realistically.

By efficiently leveraging expertise, can guide the negotiation towards realistic and mutually beneficial results, indicating your value as a knowledgeable and trustworthy associate. Improves Reliability: Demonstrates the knowledge and experience, making the position more persuasive. Builds Trust: Establishing a reliable and informed partner, fostering trust. Educates and Recalibrates Expectations: Helps to understand industry standards and realistic possibilities, reducing the likelihood of unrealistic demands. Simplifies Informed Decision-Making: Information provided leads to productive negotiation. Strengthens Relationships: Sharing the expertise in a constructive manner builds respect and strengthen long-term relationships.

Play the market leader card if you are a market leader or have the knowledge of a market leader! Propose new solutions or proof suggested solutions!

Dealing with aggressive negotiators can be challenging, but here are some strategies to help you navigate such situations: Stay Calm: Maintain your composure and avoid reacting emotionally. Aggressive behaviour is often an attempt to provoke a reaction. By staying calm, you maintain control of the conversation. Active Listening: Listen carefully to their concerns and demands. Show empathy and acknowledge their perspective. Sometimes, aggressive negotiators just want to be heard. Set Boundaries: Firmly but respectfully establish boundaries. Could you let them know what behaviour is unacceptable and that you expect a professional and respectful dialogue? Redirect Focus:

Boundaries help us win and know when to stop, here are my top tips: 1. Clearly define your deal-breakers. 2. Communicate your requirements and limitations up-front. 3. Have a backup plan if negotiations don't meet your needs. 4. Set deadlines for responses and decision-making. 5. Keep records of all discussions and agreements. 6. Attempt to find a mutually beneficial solution by understanding the other party's position. In the end, in every negotiation, you win some and you lose some.

By setting and maintaining clear boundaries, creates a structured environment for negotiations, where both parties understand the limits and work collaboratively towards achievable and beneficial outcomes. Below are some benefits for setting boundaries. 1. Clarity and Focus 2. Prevent misunderstanding 3. Builds respects 4. Facilitate realistic agreement 5. Maintain Professionalism

Always stay calm, defend your boundaries and accept the other party boundaries. Every involved party should leave negotiation with the feeling to have achieved a positive result.

Clearly outline what aspects are non-negotiable and why. Frame these boundaries in a way that aligns with the mutual goals of the project to prevent them from seeming like roadblocks. Use conditional to set boundaries. For instance, agree to certain demands only if specific conditions are met, making it clear that there are limits to what can be delivered. This is like negotiating football players contracts. Give a price to certains conditions and know when to leave the table.

I could say that most of us would have faced a situation when the timeline is very tight, which wouldn't help us to build our patience on contract negotiations, and it could cost us a weaker position. We need to let the counterpart think that we still have ample time to do further negotiations, even if we are short of time. And spend the time wisely to align with all the relevant stakeholders to ensure our counter offer on the negotiations could be beneficial for both parties, or at least no party is losing, to increase the possibility of a good deal. Don't rush, think carefully, and make sure you are fully aligned internally.

I would like to emphasize some further aspects. You know - life is not a pony farm as well tough negotiations are not. I guess its quite normal facing aggressive negotiators. So if your are well prepared you wont be shocked meeting them the first time. Of course you must know essential facts concerning the case. I guess its more important know some characteristics from the person in front of you. You know KYC (know your customer)! The same here: With whom you are dealing with. Its pretty easy getting some typical charasterics, favorite hobbys, family & firm setting, bullet points from the carreer or actual standing in the company, maybe some successes or some defeats. The more you know the better you go. Now you can start the game!

Even if negotiations take long time, be confident to bring the deal over the finish line and never get „moody“ if not everything runs out as you have expected.

"Softer water can break through a rock." Patience and persistence can overcome even the toughest obstacles. Careful, deliberate progress is often more effective than rushing into decisions. Staying patient while gradually moving towards a successful outcome in negotiations.

I say “All of the above “. Open book policy, everyone has something to bring to the table. Tally it up, be open and let the first trial begin and if doesn’t work, trial 2. Tweak it and conquer and leave the drama hungry personnel to self destruct and lead themselves out the door. Strong company and strong values that employees appreciate. No bad apples aloud.

Il est important de demeurer cohérent dans sa démarche durant la négociation, relativement à tous les détails qui en découlent ; le fait pour l'une des parties de céder sur un point ne signifie nullement qu'elle doive céder sur un autre, étant entendu que la posture de départ et les différents points de négociation doivent être soutenus par des arguments logiques et cohérents -qui auront fait l'objet d'une analyse préalable-, de manière à parvenir à un accord qui pourra être facilement exécuté et, surtout, respecté dans le temps, par toutes les parties.

7. Root Cause Analysis, Unrealistic Demands don't come from thin air, they usually bore from real problems. So once you do a deep dive to understand the demands you usually uncover another and often Bigger opportunity that shifts the negotiations entirely!