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Course Title
Project Negotiations and Vendor Management


A project manager is called on to negotiate when, among other tasks, the project requires: hiring contract personnel; procuring services, materials and equipment; arranging for support group commitments; dealing with internal and external project team conflicts; and incorporating required scope changes. 

While some negotiations involve a one-time acquisition or event, others require careful protection of new or ongoing working relationships. This course teaches participants basic and advanced negotiating strategies and tactics that can be used to ensure satisfactory agreements without compromising project success.

Once completed, participants involved with PMI and the PMP® certification program are awarded seven PDUs. Total Systems Education's Global R.E.P. number is 1270. The course is also compliant with International Institute of Business Analysis (IIBA) BABOK® Guide.  


Upon completion of this course, participants will be able to:

• Confidently and Successfully engage in Project (and even non-project) Negotiations.

• Apply valuable verbal and non-verbal Communications techniques to all Project Communications, including Negotiations.

• Understand, Develop and Apply applicable negotiation tools and strategies, including BATNA, to meet project goals.

• Negotiate with Support Groups, Cross Functional Resource Managers and Team Members, for assistance and commitments (SLAs), to create project deliverables.

• Negotiate with Vendors and Subcontractors to ensure that required work is contracted to ensure it is completed on Schedule and meets Quality standards.

• Describe many of the Legal, Ethical, and Organizational issues that need to be considered before, during, and after Negotiating.

• Identify the Procurement Management process and the role the project manager plays in dealing with vendors and support groups.

• Explain the different type of contracts, purpose, benefits and potential pitfalls.


I. Introduction and Course Objectives

A. Project Management Maturity

B. Project Phases PMI®

C. The “Manageables” (Time, Money, People, Methodology, Objectives)

II. Negotiations “101”

A. What is a Negotiation?

B. The Process of Negotiation

1. Research

2. Set-up

3. The Actual Negotiation

4. Tactics

5. The Close

III. Planning for Upcoming Negotiations (Research our arena!)

A. “Your project will lose if you do not have a plan!” – PERIOD.

B. Aspects of the Negotiations that you can plan

C. How to Plan for a Negotiation

D. Why Negotiate?

E. Who do you represent?

F. What are your strengths? Weaknesses?

G. What are your personal values, corporate values?

H. What are the Objectives?

I. Research the Details

J. Why would “they” want to negotiate with you?

1. Strengths of your position

2. Weaknesses of your position

IV. Planning for Upcoming Negotiations (Research their arena!)

A. Aspects of the Negotiations that you can plan

B. Who do they represent?

C. What are their strengths? Weaknesses?

D. What are their personal values, corporate values?

E. What are their Objectives?

F. Research the Details

G. Why would they want to negotiate with you?

1. Strengths of their position

2. Weaknesses of their position

H. How do they “see” you?

I. BATNA (Best Alternative to A Negotiated Agreement)

1. Determining what their minimums might be

2. Understanding their best option

 V. The Set-up

A. Agenda!!!

B. Choosing the Meeting Site

C. Configuration and Seating

D. Meeting Format

1. Face to Face

2. Advantages and Disadvantages of Holding Negotiations

a. by telephone

b. by video conference

c. by email

E. Who Should and Should Not Be Present (Preparing for the “wrong people”)

F. Timing of Meetings

VI. During the Negotiations

A. Two way Communication

1. Non-verbal Communication

2. Verbal Communications

B. Tactics

1. Control

2. Things NOT to say

3. Good Cop, Bad Cop

4. Re-opening Issues

5. Imaginary Partner

6. Positional Bargaining

7. Controlled Outbreaks

C. Stalled Discussions

VII. The “End Game”

A. Getting to Close -- Judge each proposal against your BATNA

B. Not Giving Up Lesser Issues After Achieving Your Primary Goals

C. Knowing When To Walk Away Without A Deal: Remember your BATNA?

D. Documenting the Agreement

1. Contracts

2. Service Level Agreements (SLA's)

3. Project Logs

E. Leaving the Door Open for Next time

F. Lessons Learned

G. Follow up as agreed upon

H. Report to Stakeholders

 VIII. Project Procurement Management

A. Contract definition

B. Six Processes to Procurement Management

IX. Plan Purchases and Acquisitions

A. Definition and Objectives

B. Factors to consider

C. Metrics to Evaluate Seller Selection

D. Standardized Procurement Documents

E. Coordinating procurement with other project management aspects

F. Establishing form and format of Statement of Work (SOW)

G. Lead Times

H. Schedule Dates

X. Plan Contracting

A. Definition and Objectives

B. Procurement Documents to seek Proposals from Sellers

1. Description of desired response

a. Consistent for comparison from Sellers

b. Flexible to look at alternatives from Sellers

C. Evaluation Criteria

XI. Request Seller Responses

A. Definition and Objectives

B. Process to get proposals

XII. Select Sellers

A. Definition and Objectives

B. Selection Criteria

XIII. Contract Administration

A. Definition and Objectives

B. Contract Contents

C. The Process

D. Contract change control systems

E. Buyer conducted performance reviews

F. Inspections and Audits

G. Performance reporting

H. Management of the Contract Relationship

I. Review and document Seller Performance

J. Establish and Manage Corrective actions

K. Payment System

L. Claims administration process

M. Records management system

XIV. Contract Closure

A. Definition and Objectives

B. Contract file

C. Closed contract

D. History

E. Deliverable acceptance

F. Lessons learned

XV. Follow-up Issues

A. Monitoring Agreement Compliance

B. Setting up the Process

C. Effective Tools

D. Needed Personnel

E. Project Documentation

XVI. Conclusion

A. Review Major Topics/Issues

B. The Role of PMI in “Real-world” Projects

C. Participants Critique Class



Method of Instruction

Instructional methods for this one day course are lecture, discussion, exercises, simulations, role plays and workshops. Session also includes participant discussion and feedback of on-going project situations.


Participation in class discussions and exercises; completion of skill practices; participation in group exercises during class is expected.