A/E/C PRICING & CONTRACT NEGOTIATIONS WORKSHOP
Detailed Course Outline
ASSESS THE LANDSCAPE
Before mastering price and negotiation tactics, get a complete picture of A/E/C market realities in 2019 and beyond.
- The latest trends that most directly impact your profitability, for better or worse
- Differentiating your practice so clients can’t price shop your firm
- Know your service life cycle position to keep subconsultants from squeezing your profits
FOCUS YOUR BUSINESS DEVELOPMENT
Are you wasting time chasing the wrong clients? Is your BD staff on the same page? Apply proven assessment tools to restructure your strategy and maximize effectiveness.
- Targeting clients to increase win ratios
- Selecting the right marketing strategy based on services and clients
- Formulas that show you when to turn down an opportunity
RAISE YOUR PRICING
Raise your prices, or not? It’s a question that sparks anxious conjecture at A/E firms. Learn how to determine if it will result in lost projects and clients. And, if it’s warranted, proven ways to mitigate risk.
- 4 winning strategies to raise prices
- PSMJ’s proprietary model to determine your optimum long-term price
- New services commanding premium prices
PRICE YOUR SCOPE ACCURATELY
Sometimes you don’t spot scope creep until you’re over budget and off schedule. But good news: we’ve got the steps to reduce your exposure and stay profitable.
- “Mini-Scoping” and how it can help you avoid hourly work
- Six steps to before quoting a price so you never lose
- How to price reimbursables instead of marking them up
CALCULATE VOLUME VS. YOUR MULTIPLIER
Should you get more work or charge more for what you have? We’ll reveal counterintuitive new findings that change how you answer this critical question.
- When it’s better to charge a lower price and get higher volume
- By raising prices do you make more money but risk losing work?
- Valuable models that test volumes vs. multipliers
START WITH THE RIGHT CONTRACT
The type of contract you choose can significantly affect financial success. Understand the risks inherent with each and select the best for your work and your clients.
- Lump sum, percent of construction, hourly no limit, NTE, or guaranteed max
- Open-ended T&M
- Use the most profitable contract type – currently used only 3% of the time
GET THE TERMS YOU WANT
Contract terms can be the backbone of your successful strategy and turn a troubled project around.
- 28 battle-tested terms that force you to win with clients and subconsultants
- How one firm uses terms to pass liability onto contractors
- The contract negotiation counteroffer that generates royalties for years to come
NEGOTIATE THE BEST DEAL
Meet your minimum acceptable profit requirements without alienating your client or pricing yourself out of contention for jobs.
- PSMJ’s 12 negotiating rules, including the worst way to handle a demand to cut fees
- The real benefit of fee negotiations with clients and subconsultants
- The “Parallel Estimate Approach”
GET PAID FOR CHANGES
Scope and design changes won’t kill your bottom line if you build in critical protections in the contract negotiations stage.
- How to get paid for changes and how to get more for them
- Contract terms that will cut losses during construction
- Share in your client’s profits
IMPLEMENT AND REAP REWARDS
Distilling and prioritizing what you’ve learned and putting it into practice maximizes the value of your time away from the office.
- Selecting action items
- Choosing what NOT to do
- Communicating your new vision to key players and tracking results