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Why focus negotiation on contentious issues that address the consequences of failure when efforts could be directed towards greater collaboration and incentives and methods to achieve success?
For all the talk about a changing environment, this year's Top Ten Negotiated Terms shows no sign that it has affected the behavior or attitudes of the lower ranks of corporate organization. Whoever drives policy or negotiation practice has clearly not been party to the executive discussions about a new, more collaborative approach to business dealings. Or if they were part of those discussions, they either could not interpret what it might mean to the contracting process, or they chose to ignore it. Recent CEO surveys show nearly 50% of executives believe their company is 'not very good at collaborating'. The survey results suggest the percentage may be much higher.
IACCM "TOP 10" Negotiated terms 2006 |
|
|
|
|
|
|
Term |
2005 |
2004 |
2003 |
2002 |
1 |
Limitation of Liability |
1 |
1 |
1 |
1 |
2 |
Indemnification |
2 |
4 |
10 |
3 |
3 |
Intellectual Property |
3 |
5 |
3 |
2 |
4 |
Price / Charge / Price Changes |
6 |
3 |
5 |
7 |
5 |
Termination (cause / convenience) |
7 |
7 |
7 |
5 |
6 |
Warranty |
5 |
2 |
2 |
6 |
7 |
Confidential Information / Data Protection |
8 |
10 |
14 |
15 |
8 |
Delivery / Acceptance |
9 |
8 |
12 |
13 |
9 |
Payment |
4 |
6 |
4 |
11 |
10 |
Liquidated Damages |
12 |
9 |
13 |
19 |
11 |
Service Levels |
10 |
13 |
|
|
12 |
Insurance |
15 |
11 |
|
|
13 |
Performance Bonds / Guarantees / Undertakings |
13 |
23 |
|
|
14 |
Applicable law / Jurisdiction |
14 |
12 |
|
|
15 |
Rights of Use |
- |
16 |
|
|
16 |
Assignment / Transfer |
16 |
17 |
|
|
17 |
Dispute Resolution |
- |
- |
|
|
18 |
Audits / Benchmarking |
17 |
18 |
|
|
19 |
Invoices / Late Payment |
- |
|
|
|
20 |
Most Favored Client |
18 |
|
|
|
21 |
Freight / Shipping |
22 |
19 |
|
|
22 |
Business Continuity / Disaster Recovery |
19 |
|
|
|
23 |
Entirety of Agreement |
21 |
|
|
|
24 |
Security |
24 |
|
|
|
25 |
Enterprise Definition / Future Acquisitions / Divestiture |
11 |
|
|
|
26 |
Non-Solicitation of Employees |
- |
|
|
|
27 |
Force Majeure |
20 |
24 |
|
|
28 |
Export / Import Regulations |
23 |
|
|
|
29 |
Product Substitution |
|
|
|
|
30 |
Escrow |
25 |
|
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Copyright © 2007. Tim Cummins
April 2007 |
Copyright © 2007, The Negotiator Magazine |