9 A negotiation

Business Result Upper-intermediate Unit 9 | Classroom DVD Worksheets © Oxford University Press
Starting point
1 Who do you negotiate with at work and in your daily life, e.g. clients, colleagues,
family, market traders? What kinds of things do you have to negotiate? Do you find
it easy or difficult?

Video comprehension
2 video Watch the video. Who does the following during the negotiation? Write Matt
(M) or Sabine (S) or both (S/M).
1 state the problem
2 strongly disagree with other person’s initial proposal
3 clarify and understand the other person’s position
4 propose a solution that is good for both sides
5 reach and confirm an agreement

3 video Watch the video again. Match the actions / opinions (1–7) with reasons (a–f).
1 Sabine added a supplementary fee on last month’s invoice because
2 Matt doesn’t think there should be an additional fee because
3 Matt suggests including the extra fee in the Intranet costs because
4 Sabine can’t agree to include costs from the website with the Intranet because
5 Matt is under pressure from people in his company because
6 Matt agrees to drop the late fees because
7 Matt will put any future agreements in writing because

a developing the Intranet has been easier than expected.

b QPG’s marketing department requested extra work.
c they both want to avoid any similar disagreements in the future.
d developing the website and Intranet are two different jobs.
e the contract says both sides should agree on additional fees for additional work.
f the Intranet and the website have been delayed and there are additional costs.
g Sabine proposes to forget the additional fee for this month.

» For more exercises on this video, go to the DVD-ROM.

Speaking
4 Read and discuss the following in groups. There are three possible outcomes for
both sides in a negotiation:
win-win: both sides are pleased with the final outcome
win-lose: only one side is pleased with the outcome
lose-lose: neither sides gets what they want

1 Which type of outcome did Matt and Sabine achieve? Why was this an important outcome?
2 Are there any situations where this kind of outcome isn’t as important for both sides?
3 Give a real example from your work of a negotiation with one of these outcomes. What
happened? Compare you experience with the rest of the group.
Video script
Sabine Kolbeck is the head of SaveIT – an IT firm
that has been contracted by QPG to update their
website and build them a new intranet. She is having
a video conference with Matt, the head of IT at
QPG. They are reaching the end of their meeting.
Sabine: OK. So is that everything?
Matt: Nearly. There’s just one thing left which has
come to me from my Finance Director.
Sabine: Oh yes?
Matt: Your invoice for last month. There’s a
supplementary charge for the website.
Sabine: That’s right. Are you talking about the
extra costs for the marketing pages?
Matt: Yes. Why isn’t that work included as part of
the main cost?
Sabine: Because when we drew up the contract,
70% of the fee was for the intranet costs as it was
going to be a much more complex project. But
your marketing department has requested many
changes and additions which weren’t part of
the agreement.
Matt: But there’s a clause in the contract which
covers additional work.
Sabine: Well it says any additional work will be
charged over and above the agreed fee.
Matt: Yes I know the clause you mean. But it also
says that any fee for this kind of work must be
agreed by both parties.
Sabine: But when your marketing people emailed
me with their requests I checked with you at
the time.
Matt: But only the actual changes.
Sabine: So you’re saying we should have
renegotiated on this price.
Matt: I’m saying we should have discussed any
additional fees. I wasn’t aware that this part of
the job was going to be costed separately. Look.
I’m sure we can resolve this. How would you feel
about including this cost in the intranet costs
because that side of the project has in fact been
easier than any of us expected.
Sabine: But they are two different jobs. I don’t
think we can talk about them as the same thing.
The fact is that website has become a much
bigger project than we originally agreed on. So
I’m sorry but we can’t agree to that.
Matt: There is also an issue of the late fee. Both
projects have run overtime and there’s a clause in
the contract for this.
Sabine: Yes but, Matt, come on! The intranet is ready.
Matt: More or less. We still have some glitches.
Sabine: Well the website is only delayed because of
marketing. Look. What are your main concerns
Business Result Upper-intermediate Unit 9 | Classroom DVD Worksheets © Oxford University Press
here – the dates for this or just the amount of the
last invoice?
Matt: Well both, Sabine. I’m under a lot of pressure
from my people asking why there are so many
delays and now there are additional costs.
Sabine: OK, Matt. Let’s see if we can work this out. I
want to check I understand you correctly first. So
your main concern is the existence of additional
costs when there are delays and the fact that people
are putting you under pressure. Is that right?
Matt: That’s it.
Sabine: OK. Well, I think we may be able to
resolve this. I can probably work something out
regarding the fees on this occasion. But my main
concern is that I don’t want to find myself in a
position in the future where I don’t get paid for
additional work requested by other departments.
Does that make sense?
Matt: Sure.
Sabine: In which case what I propose is this: First,
let’s forget the additional fee for this month. In
return, would you agree to dropping any late fees
this time?
Matt: I think that would be OK. I’m still concerned
about the delays, though.
Sabine: Absolutely. I quite understand. So the
second part of my proposal relates to the delays.
Now, obviously, there’s nothing I can do about
delays so far and, as I say, I think these have
come from both sides. The problem has been
more to do with the communication between us
when Marketing have approached me with more
changes and requests. Does that sound fair?
Matt: Yes. I simply needed clearer estimates from you
in terms of the additional costs and time involved.
Sabine: OK. So, in future I suggest we make it clear
that if there are any further changes and major
work – we need to talk. That way you’ll be up to
date on progress and you won’t be receiving any
nasty surprises when the invoice arrives. At the
same time, I won’t be worried about putting in
additional work for free.
Matt: That sounds … good, I think. One thing: I
think any agreements we make for additional work
and time should also be confirmed in writing.
Sabine: That’s a really sensible idea. I need to
spend as much time on this project myself as I
can, so would you be prepared to take on the
responsibility for drafting these agreements?
Matt: Sure. I’d prefer it that way myself.
Sabine: Great.
Matt: So just to be clear, we’ve agreed that you will
send me the replacement invoice, taking off the
additional charges and that I’ll forget about the
late fees. And we’ve also agreed that in future,
Sabine: And that you’ll draft confirmations
following any discussions.
Matt: Great. That makes life easier. I’ll confirm this
agreement in writing too.
Sabine: Actually, Matt, now we’ve got that out

Business Result Upper-intermediate Unit 9 | Classroom DVD Worksheets © Oxford University Press
you will approach me as soon as you’ve been of the way, I need to speak to you because
asked to do anything extra which will affect Marketing have just told me they want changes
progress and additional costs. made to the Customers’ pages …

Worksheet answer key

1 Answers will vary.
1  M  ​2  S  ​3  S  ​4  S  ​5 S/M
3 1  b  ​2  e  ​3  a  ​4  d  ​5  f  ​6  g  ​7 c
4 1 Matt and Sabine achieve a win-win outcome.
Answers may vary but the main reason
it’s important is because they both need
to maintain a good long-term business
relationship and so they can’t let this problem
get in the way of that.
2 Answers will vary but in situations where
a longer-term business relationship isn’t
important, some negotiators may choose to
win at any cost.
3 Answers will vary.