Today, our employees face new challenges in practice, which can make it difficult, and in some cases impossible, to turn productive negotiations into a full-fledged agreement and continued cooperation. Turbulence in the real estate market is caused by military actions on the territory of our country, which, unfortunately, are currently not limited to a specific zone due to the mission of the aggressor country to launch missile strikes on the entire territory of Ukraine. Today, before the launch of a new project, be it the opening of a shopping center with a GLA of 20,000 sq.m. or a small shop with an area of 20 sq.m. investors have to consider new risks.
I cannot fail to note that due to frequent lockdowns since 2020, cooperation between retailers and developers has become more flexible and coordinated. The parties can almost always resolve acute issues in the shortest possible time over the phone. Adding clauses regarding work during quarantine restrictions when concluding a cooperation agreement has practically become the "gold standard". The parties "on the shore" took into account changes to the legislation and their practical work experience, and reached a consensus before starting further work. The ability to listen to the other side and to raise and solve uncomfortable issues makes the tandem of the retailer and the developer even stronger and benefits both companies.
But starting from February 24, the business faced challenges of unheard of strength. Today, concluding a cooperation agreement with "many unknowns" has sometimes become a "Rubicon" for companies that is difficult to cross. In the current circumstances, even when concluding a contract for work in a city that is 1,000 km from the front, businesses have to take into account many more factors: these include logistics, a possible change in the location of the contractors' production, the availability of personnel, the curfew schedule, the operation of public transport, and much more. another.
Also, in addition to the significant increase in the official foreign currency rate, the increase in prices for goods and services, when planning business trips, you have to take into account possible fuel shortages, changes in train schedules, etc.
Difficulties in negotiating the terms of the contract are further compounded by the circumstances when the representatives of the parties are not in Ukraine under objective circumstances. Yes, Zoom has become a common tool in the offices of all companies in recent years, but unfortunately, it cannot replace a trusting face-to-face conversation between potential partners.
Unfortunately, the reverse side of the goal of predicting all the potential risks that the company may face during its activities is a prolonged time, a loss of rhythm, and a refusal to conclude a deal by one of the parties.
Based on the extensive practical experience of the employees of the company "Ukrainian Consult Group", we can give several tips for translating productive negotiations into the conclusion of a cooperation agreement and further development of the project:
1. Set a goal to make the conference call as productive as possible.
Allow more time for phone and video conferences. Try not only to collect all questions for discussion, but also to connect all possible specialists for quick resolution of issues.
"Torn" calls today are suitable only for solving operational issues, and not for a thoughtful discussion of the principles for long-term cooperation, especially if the parties are geographically not in the same city, or even not in the same country. Unfortunately, the majority of refusals to conclude a contract occur due to the fact that the parties are in different circumstances and do not find time to hear the partner's opinion.
2. Set time limits for agreeing the terms of the contract.
This will allow the parties not to lose rhythm and agree on the terms of cooperation as efficiently as possible.
3. Engage professionals.
This will allow, firstly, to minimize your costs of time spent on agreeing the terms of the cooperation agreement. And secondly, taking into account the extensive practical experience of our employees and their deep knowledge of the market, it will help to conclude a cooperation agreement that takes into account the maximum number of risks that exist today.
Experts of "UKRAINIAN CONSULT GROUP" are always on your side!