Everyone asks me “how long should it take to negotiate an agreement?” There is no clear cut answer as there are too many factors including, but not limited to:
- Do you have someone dedicated to this process of negotiating an agreement?
- Does this person have other duties that will pull them away from focusing on this endeavor?
- Is the person overseeing this agreement a “subject matter” expert?
- If not, they may need time to become one, otherwise it may have a long term impact on your properties.
- What are you looking for?
- Generate or save revenue?
- Gain a competitive edge?
- Excellent customer service?
- Reduce expenses for residents?
- How many providers are you aware of that can provide the product/service?
- The more providers, the longer the RFP/evaluation process will be.
- Do you have a legal expert who is knowledgeable with the type of agreement you are working on that can assist with drafting/reviewing/marking up a contract? Or, are you working off an already approved (from both sides) agreement form?
NOTE: Remember to think about how a service and its corresponding agreement will impact a property, its residents and staff, now and in the future.