There are two roles to play in this negotiation 1) the client, Big Corp and 2) the design professional Inland Architects. This homework is for those playing the role of a Big Corp representative. Read the scenario and then study the contract. Do not share you scenario with a student from the other side! You’ll spoil the fun. To prepare for this negotiation, read the following scenario details:
You are the director of construction services for Big Corp, Inc., a major US telecom company.
The contract you will be negotiating is the standard contract you use for all A&E firms. It’s tough, you know it’s tough and you don’t usually give in to client requests for concessions. However, twice recently you have selected a highly qualified A&E but been unable get them under contract because they would not agree to your terms & conditions. You eventually contracted with other firms who would agree to your terms & conditions but you have not been satisfied with the quality from these firms.
You selected Inland Architects based on their strong qualifications. They really blew you away in their technical presentation, and you were impressed with the quality of their staff when you visited their home office. The bottom line is you want to get this firm under contract. You don’t want to appear soft or roll over, but you’ll accept any reasonable modifications, if that’s what it takes to get Inland Architects on contract.
Read the contract and identify the areas in which you think Inland Architects will most likely ask for changes. For each area decide what changes would be acceptable and what changes are a no‑go and you just won’t be able to accept. Write notes and come prepared!
3. Provide your answers to the following questions.
- What clauses in contracts deal with standard of care? Is the required standard of care greater than the ordinary professional standard of care?
- What clauses in the contract deal with indemnities? Are they balanced and fair to both parties?
- What clauses in the contract deal with warranties and guaranties? Are they balanced and fair to both parties?
- If you were representing Inland Architects, would you sign this contract as written? If not what paragraphs would you object to?
- For each paragraph you identified in part d) above, explain how much you would give up at the Big Corp representative in order to reach an agreement with Inland Architects
Provide your written responses to Part 1 (Questions 1 and 2) and Part 2 (Question 3) in a single .pdf or .docx file format.