97 Things Every Project Manager Should Know

(Rick Simeone) #1

Collective Wisdom from the Experts 109


When disagreements arise, work to resolve them in such a way that both par-
ties come out as winners. Even when the contract supports your position,
negotiate. While you may feel that you would be proven right in a court of
law, the damage to the relationship, and the obvious stalemate of the project
while the case is being resolved, will impact the ultimate success of the project.
While there may be situations when pursuing a legal option is all that is left, it
should be a last resort.


The best way to avoid possible conflicts is to be fair when negotiating the con-
tract. For example, if the contract has penalties, make sure it includes bonuses
as well. Both parties need to feel they have an equal chance to win and lose.
Even with a fixed-price contract, it may be better to renegotiate than to have
the buyers (your customers) walk away from the project because they feel they
have more to lose by completing the project than by abandoning it.


Also, beware of the bid that feels too good to be true. If your sales team is not
presenting a competitive bid, it may mean that your buyers do not fully under-
stand what is required to complete the work of the project. Once they become
aware that they are overpaying, they will likely try to renegotiate, or walk away.

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