What is a Contract Negotiation?
Definition
The process of finalizing terms with the selected vendor including pricing adjustments, SLA modifications, customization scope, payment terms, and exit clauses. Contract negotiation happens after evaluation but before signing the Master Service Agreement."
Why This Matters
Contract terms are typically negotiable, including pricing, SLAs, exit clauses, and customization scope. Thoughtful negotiation can yield better terms and conditions. Many organizations accept initial proposals without negotiation, missing opportunities for improved terms.
Related Terms
Showing semantically related terms from our RFP knowledge graph. Priority connections are highlighted.
Essential Connections
Master Service Agreement
RFP Fundamentals
A contract establishing terms and conditions for ongoing vendor relationships including pricing, payment terms, intellectual property rights, liability, termination clauses, and dispute resolution.
Service Level Agreement
Pricing & Total Cost
Contractual commitments defining expected service quality including uptime guarantees, response times, resolution timeframes, and penalties for non-compliance.
Legal Agreement
RFP Fundamentals
Legally binding contract between parties establishing rights, obligations, and remedies.
Vendor Selection
Vendor Management & Evaluation
The systematic process of evaluating and choosing software vendors based on product capabilities, security compliance, implementation support, company stability, and pricing.
Procurement Lifecycle
Pricing & Total Cost
The end-to-end process for acquiring software including needs assessment, requirements definition, RFP creation, vendor evaluation, contract negotiation, implementation, and ongoing management.
Vendor Onboarding
Pricing & Total Cost
The structured process of integrating a selected vendor including contract execution, system access provisioning, stakeholder introductions, kickoff meetings, and project plan finalization.
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Related RFP Templates
Explore our top RFP templates - all 75 templates include questions about contract negotiation