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Become A Contract Negotiator

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Working As A Contract Negotiator

  • Getting Information
  • Communicating with Supervisors, Peers, or Subordinates
  • Interacting With Computers
  • Communicating with Persons Outside Organization
  • Establishing and Maintaining Interpersonal Relationships
  • Mostly Sitting

  • Make Decisions

  • Stressful

  • $87,450

    Average Salary

What Does A Contract Negotiator Do

Buyers and purchasing agents buy products and services for organizations to use or resell. They evaluate suppliers, negotiate contracts, and review the quality of products.

Duties

Buyers and purchasing agents typically do the following:

  • Evaluate suppliers on the basis of the price, quality, and speed of delivery of their products and services
  • Interview vendors and visit suppliers’ plants and distribution centers to examine and learn about products, services, and prices
  • Attend meetings, trade shows, and conferences to learn about new industry trends and make contacts with suppliers
  • Analyze price proposals, financial reports, and other information to determine reasonable prices
  • Negotiate contracts on behalf of their organization
  • Work out agreements with suppliers, such as when products will be delivered
  • Meet with staff and vendors to discuss defective or unacceptable goods or services and determine corrective action
  • Evaluate and monitor contracts to be sure that vendors and supplies comply with the terms and conditions of the contract and to determine the need for changes
  • Maintain and review records of items bought, costs, deliveries, product performance, and inventories

Buyers and purchasing agents buy farm products, durable and nondurable goods, and services for organizations and institutions. They try to get the best deal for their organization: the highest quality goods and services at the lowest cost. They do this by studying sales records and inventory levels of current stock, identifying foreign and domestic suppliers, and keeping up to date with changes affecting both the supply of, and demand for, products and materials.

Purchasing agents and buyers consider price, quality, availability, reliability, and technical support when choosing suppliers and merchandise. To be effective, purchasing agents and buyers must have a working technical knowledge of the goods or services they are purchasing.

Evaluating suppliers is one of the most critical functions of a buyer or purchasing agent. Many organizations run on a lean manufacturing schedule and use just-in-time inventories, so any delays in the supply chain can shut down production and cause the organization to lose customers.

Buyers and purchasing agents use many resources to find out all they can about potential suppliers. They attend meetings, trade shows, and conferences to learn about new industry trends and make contacts with suppliers.

They often interview prospective suppliers and visit their plants and distribution centers to assess their capabilities. For example, they may discuss the design of products with design engineers, quality concerns with production supervisors, or shipping issues with managers in the receiving department.

Buyers and purchasing agents must make certain that the supplier can deliver the desired goods or services on time, in the correct quantities, and without sacrificing quality. Once they have gathered information on suppliers, they sign contracts with suppliers who meet the organization’s needs and they place orders.

Buyers who purchase items to resell to customers may determine which products their organization will sell. They need to be able to predict what will appeal to their customers. If they are wrong, they could jeopardize the profits and reputation of their organization.

Buyers who work for large organizations often specialize in purchasing one or two categories of products or services. Buyers who work for smaller businesses or government agencies may be responsible for making a greater variety of purchases.

Wholesale and retail buyers purchase goods for resale to consumers. Examples of these goods are clothing and electronics. Purchasing specialists who buy finished goods for resale are commonly known as buyers or merchandise managers.

Purchasing agents and buyers of farm products buy agricultural products for further processing or resale. Examples of these products are grain, cotton, and tobacco.

Purchasing agents, except wholesale, retail, and farm products buy items for the operation of an organization. Examples of these items are chemicals and industrial equipment needed for a manufacturing establishment, and office supplies.

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How To Become A Contract Negotiator

Although a high school diploma may be sufficient for some positions, many employers require buyers and purchasing agents to have a bachelor’s degree. Most entry-level positions require some form of on-the-job training.

Education

Educational requirements usually vary with the size of the organization. Although a high school diploma may be enough at some organizations, many businesses require applicants to have a bachelor’s degree. For many positions, a degree in business, finance, or supply management is sufficient.

For those interested in a career as a buyer or purchasing agent of farm products, a degree in agriculture, agriculture production, or animal science is often beneficial.

Training

Buyers and purchasing agents typically get on-the-job training for more than 1 year. During this time, they learn how to perform their basic duties, including monitoring inventory levels and negotiating with suppliers.

Licenses, Certifications, and Registrations

There are several certifications available for buyers and purchasing agents. Although some employers require certification, many do not.

Most of these certifications involve oral or written exams and have education and work experience requirements.

The Institute for Supply Management offers the Certified Professional in Supply Management (CPSM) credential, which covers a wide scope of purchasing professional duties. To receive the CPSM credential, candidates must pass three exams and those with a bachelor’s degree must possess at least 3 years of relevant work experience while those without a bachelor’s degree must have at least 5 years of relevant work experience.

The American Purchasing Society offers the Certified Purchasing Professional (CPP) certification. The CPP certification is valid for 5 years. Candidates must earn a certain number of professional development “points” to renew their certification. Candidates initially become eligible and can renew their certification through a combination of purchasing-related experience, education, and professional contributions (such as published articles or delivered speeches).

APICS offers the Certified Supply Chain Professional (CSCP) credential. Applicants must have 3 years of relevant business experience or a bachelor’s degree in order to be eligible for the CSCP credential. The credential is valid for 5 years. Candidates must also earn a certain number of professional development points to renew their certification.

The Next Level Purchasing Association offers the Senior Professional in Supply Management (SPSM) Certification. Although there are no education or work experience requirements, applicants must complete six online courses and pass an SPSM exam. Certification is valid for 4 years. Candidates must complete 32 continuing education hours in procurement-related topics to recertify for an additional four-year period.

The Universal Public Procurement Certification Council (UPPCC) offers two certifications for workers in federal, state, and local government. The Certified Professional Public Buyer (CPPB) credential requires applicants to have earned at least an associate’s degree, possess at least 3 years of public procurement experience, and complete relevant training courses. The Certified Public Purchasing Officer (CPPO) requires applicants to have earned a bachelor’s degree, possess at least 5 years of public procurement experience, and complete additional training courses.

Those with the CPPB or the CPPO designation must renew their certification every 5 years by completing continuing education courses or attending procurement-related conferences or events.

The National Institute of Government Purchasing (NIGP), Institute for Public Procurement offers preparation courses for the UPPCC certification exams.

Advancement

An experienced purchasing agent or buyer may become an assistant purchasing manager before advancing to purchasing manager, supply manager, or director of materials management. Buyers and purchasing agents with extensive work experience can also advance to become the Chief Procurement Officer (CPO) for an organization.

Important Qualities

Analytical skills. When evaluating suppliers, buyers and purchasing agents must analyze their options and choose a supplier with the best combination of price, quality, delivery, or service. 

Decisionmaking skills. Buyers and purchasing agents must have the ability to make informed and timely decisions, choosing products that they think will sell.

Math skills. Buyers and purchasing agents must possess basic math skills. They must be able to compare prices from different suppliers to ensure that their organization is getting the best deal. 

Negotiating skills. Buyers and purchasing agents often must negotiate the terms of a contract with a supplier. Interpersonal skills and self-confidence, in addition to knowledge of the product, can help lead to successful negotiations.

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Contract Negotiator jobs

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Contract Negotiator Career Paths

Contract Negotiator
Program Manager General Manager Account Executive
Account Director
9 Yearsyrs
Senior Contracts Negotiator Contracts Manager
Contracts Director
12 Yearsyrs
Contracting Officer Senior Contract Specialist
Contracts Manager
9 Yearsyrs
Contracts Director Director, Procurement
Director Of Strategic Sourcing
13 Yearsyrs
Business Development Manager Supply Chain Manager
Director, Procurement
13 Yearsyrs
Contracts Manager Project Manager Program Manager
General Manager
7 Yearsyrs
Business Developer Senior Recruiter
Human Resources Business Partner
10 Yearsyrs
Contracting Officer Contracts Manager Program Manager
Marketing Director
7 Yearsyrs
Contracts Administrator Project Manager Program Manager
Marketing Manager
6 Yearsyrs
Contracts Manager Contracts Administrator Project Coordinator
Operations Manager
7 Yearsyrs
Operations Manager Purchasing Manager
Project Procurement Manager
12 Yearsyrs
Contracts Administrator Project Coordinator Operations Manager
Purchasing Manager
9 Yearsyrs
Senior Contracts Negotiator Contracts Administrator Purchasing Manager
Senior Manager, Procurement
11 Yearsyrs
Project Manager Senior Project Manager
Senior Product Manager
9 Yearsyrs
Business Development Manager Senior Recruiter Purchasing Manager
Senior Purchasing Manager
9 Yearsyrs
Contracts Director Principal Consultant Supply Chain Manager
Senior Sourcing Manager
12 Yearsyrs
Business Developer Business Manager Contracts Administrator
Subcontracts Manager
11 Yearsyrs
Operations Manager Human Resources Coordinator Senior Recruiter
Vending Manager
7 Yearsyrs
Program Manager Senior Project Manager
Vice President And Manager
10 Yearsyrs
Project Manager Program Manager Business Developer
Vice President, Business Development
13 Yearsyrs
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Contract Negotiator Demographics

Gender

Male

52.5%

Female

44.7%

Unknown

2.8%
Ethnicity

White

81.5%

Hispanic or Latino

9.0%

Asian

7.0%

Unknown

1.7%

Black or African American

0.8%
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Languages Spoken

Spanish

39.7%

French

10.3%

Chinese

5.2%

Mandarin

5.2%

Hindi

5.2%

Italian

5.2%

Portuguese

3.4%

Japanese

3.4%

Arabic

3.4%

Russian

1.7%

Swedish

1.7%

Vietnamese

1.7%

German

1.7%

Serbian

1.7%

Berber

1.7%

Persian

1.7%

Choctaw

1.7%

Malayalam

1.7%

Polish

1.7%

Hausa

1.7%
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Contract Negotiator Education

Schools

University of Phoenix

14.8%

George Washington University

6.6%

Villanova University

6.6%

University of Kansas

6.6%

University of Texas at Arlington

5.7%

Georgetown University

4.9%

DePaul University

4.9%

Suffolk University

4.9%

Syracuse University

4.1%

Wayne State University

4.1%

Santa Clara University

4.1%

University of Missouri - Kansas City

4.1%

Florida State University

4.1%

Wright State University

4.1%

Weber State University

4.1%

Webster University

3.3%

Pennsylvania State University

3.3%

University of Washington

3.3%

University of Central Florida

3.3%

Wichita State University

3.3%
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Majors

Business

32.6%

Law

21.6%

Finance

5.7%

Management

5.2%

Marketing

3.8%

Political Science

3.3%

Accounting

3.3%

Legal Research And Advanced Professional Studies

2.6%

Legal Support Services

2.4%

Psychology

2.4%

Health Care Administration

2.4%

Human Resources Management

2.3%

Communication

2.1%

Project Management

1.9%

Economics

1.6%

Electrical Engineering

1.4%

Public Administration

1.4%

Criminal Justice

1.4%

International Business

1.2%

Nursing

1.2%
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Degrees

Masters

31.7%

Bachelors

29.9%

Doctorate

17.7%

Other

13.4%

Certificate

4.3%

Associate

2.6%

License

0.3%

Diploma

0.3%
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Real Contract Negotiator Salaries

Job Title Company Location Start Date Salary
Contracts Negotiator Salesforce.Com Inc. San Francisco, CA Aug 17, 2015 $115,000
Contracts Negotiator Salesforce.Com Inc. San Francisco, CA Aug 24, 2015 $115,000
Contracts Negotiator Salesforce.Com, Inc. San Francisco, CA Jul 27, 2016 $101,171
Contracts Negotiator Hewlett-Packard Company Palo Alto, CA Aug 05, 2014 $95,763 -
$115,000
Contract Negotiator BACO Enterprises Inc. New York, NY Sep 30, 2014 $83,480
Contract Negotiator BACO Enterprises Inc. New York, NY Oct 01, 2011 $83,480
International Contract Negotiator International Bridge, Inc. Orem, UT Mar 15, 2011 $75,234
International Contract Negotiator (Japan) International Bridge, Inc. Orem, UT Jan 09, 2010 $75,234
International Contract Negotiator International Bridge, Inc. Orem, UT Jan 09, 2012 $72,000
International Contract Negotiator International Bridge Orem, UT Jan 09, 2011 $72,000
Contract Negotiator BACO Enterprises Inc. New York, NY Dec 24, 2015 $58,698
Contract Negotiator and Estimator UTI United States Inc. Long Beach, CA Oct 06, 2011 $53,560 -
$70,000
Contract Negotiator CPN-Network LLC Washington, DC Oct 01, 2011 $48,027
Contract Negotiator Mohamad Pournamdari, Inc. Inglewood, CA Oct 01, 2012 $39,582

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Top Skills for A Contract Negotiator

ProposalDevelopmentEnsureComplianceContractNegotiationsFinancialGoalsRFPContractTermsCounselSoftwareLicenseAgreementsNon-DisclosureAgreementsAuditCompanyPoliciesCostSavingsProjectManagementFinalContractDocumentsContractAdministrationContractIssuesRealEstateIntellectualPropertyProfessionalServicesCustomerService

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Top Contract Negotiator Skills

  1. Proposal Development
  2. Ensure Compliance
  3. Contract Negotiations
You can check out examples of real life uses of top skills on resumes here:
  • Managed complex proposal development efforts.
  • Conducted and managed ongoing audits of provider information and contract installation to ensure compliance with contractual obligations and plan standards.
  • Facilitated contract negotiations between applicable parties.
  • Maintained and enhanced provider networks while meeting and exceedingaccessibility, quality, and financial goals.
  • Drafted requests for proposals (RFPs) for all competitions and sole source acquisitions worth between $100K and $10M.

Top Contract Negotiator Employers

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Contract Negotiator Videos

Contract Negotiation for the Non-Negotiator

Salary Negotiation: Do's and Don'ts!

The Art of Negotiation | Maria Ploumaki | TEDxYouth@Zurich

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