An Agreement In Which Each Side Makes Concessions

For example, there is a concession contract between the French and British governments and two private companies via the Channel Tunnel. British Channel Tunnel Group Limited and France-Manche S.A. operate the Channel Tunnel, often referred to as “Chunnel” as part of the agreement. The tunnel connects the two countries and allows the transport of people and goods between them. It is 50 km long and is 38 km under the English Channel. The Channel Tunnel is therefore the longest underwater tunnel in the world and an important part of the public infrastructure. The above strategies are designed to ensure that the concessions you make are not ignored or exploited. Effective negotiators not only ensure that their own concessions are replicated, but also that they recognize and retaliate the concessions of others. Quota concessions are almost risk-free. They allow you to point out to the other party that if you can make even more concessions, you may not be able to defend yourself if reciprocity is not guaranteed. Keep in mind, however, that over-reliance on conditional concessions can interfere with trust building. If every time you make a concession, you seek immediate compensation, your behavior is considered selfish and is not intended to achieve mutual satisfaction. Qualified negotiators know that timely strategic concessions can be an effective tactic in negotiations.

In this article, Deepak Malhotra, a professor at Harvard Business School and a member of the faculty`s PON, proposes four ways to make your concessions optimal. For example, consider the next negotiation between an IT services company and a customer. The client suggests that the IT company`s cost estimates are unreasonable; The IT company`s project manager believes that the cost estimates are correct (and perhaps conservative) given the complexity of the project and the short time frame. If the project manager is willing to make a concession, she could say, “It`s not easy for us, but we`ve made some price adjustments to address your concerns. We expect you to be in a better position to make some changes to the project dates. An extra month for each step would help us immeasurably.¬†Politics on both sides in South Asia leaves little room for compromise or dialogue. Quota concessions are almost risk-free. They allow you to point out to the other party that if you can make even more concessions, you may not be able to defend yourself if reciprocity is not guaranteed. Labelling your concessions helps trigger a reciprocal obligation, but sometimes your opponent will be slow to meet that obligation. To increase the likelihood that you will get something in exchange for your concession, try to ask explicitly – but diplomatically – for reciprocity.

1An agreement or settlement of a dispute obtained by each party making concessions. On a smaller scale, suppliers work under concession contracts awarded by local governments, businesses or other property owners. This activity may include restaurants and retail outlets at major airports, vendors at public fairs or the sale of food and beverage stalls in public parks. Concessions are almost always necessary to complete a successful transaction. While most entrepreneurs understand that negotiation is a matter of giving and receiving, you must be willing to make concessions to make concessions in return. But the process is not easy. Concessions are often not recognized and are not replicated. Don`t assume that your actions speak for themselves.