Contract negotiations
2 April 2012
Q: Our clients in the construction industry often impose contract price adjustment (CPA) clauses on us, but many of our suppliers will not accept similar terms from us. What should we do?
A: Rachel Stott, managing director, Acorn to Oak, writes: You have two problems here: the first is about negotiation, and the second is about understanding how CPA clauses affect your company.
Strong negotiating skills are more important than being in a position of strength. It is vital that negotiations aim to produce a win-win situation. In part, this...