
Fernando Navarro Sánchez and Laura Frederick sat down to discuss how trust worked as currency in contract negotiations, how small habits built or broke it, and what repaired it after damage.
Laura is Founder and CEO of How to Contract. Fernando is Regional Ombudsman for the Pan American Health Organization in Washington, DC. Fernando trained as a lawyer in Mexico, spent close to a decade doing project development work in the solar energy industry, and then moved fully into alternative dispute resolution. He works now as a mediator and as an ombudsperson inside the United Nations system, which means he sees what happens to relationships after trust has already collapsed. Laura shared her experience building trust in negotiations, drawing on years of cross-border commercial deals.
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They discussed trust as a currency you budget and spend, the reputation work that happens long before anyone exchanges a redline, small talk and body language as safety signals, the cultural and hierarchical dynamics that get misread in cross-border deals, the techniques that restart a stalled negotiation, the document habits that quietly destroy credibility, and what it takes to repair trust once it breaks.
Here are our top ten takeaways from Fernando and Laura’s conversations:
Treat trust as currency you budget and spend. Trust makes representations land without proof, makes concessions read as generous instead of suspicious, and absorbs the cracks that show up in any long deal. You only have so much of it in a given relationship, so plan where it goes. The account is not fixed either. Good negotiators grow it while the deal is running rather than spending down whatever they arrived with.
Build your reputation long before the negotiation starts. Your online presence, your references, and the brand you represent all get to the table ahead of you. When there is no prior history with the counterparty, those things do the work that experience would otherwise do. This is continuous work, not something you switch on when a deal opens.
Be respectful to everyone in the room, not just the decision maker. Fernando has seen negotiations collapse because someone treated the other side's paralegal or junior team member as unimportant. Nobody forgets that, and it costs you far more than the two seconds of acknowledgment would have. Courtesy here is deal protection, not just good manners.
Avoid surprises in your timing and in your documents. Missing a deadline, going quiet on a message, or canceling a committed trip does real damage early, when there is nothing in the account to absorb it. A draft that arrives wildly one-sided, or that quietly walks back terms the other side already saw, does the same thing. When your position changes, explain why rather than announcing the change and stopping.
Give small talk real time, especially over video. Our brains move toward what feels safe, and interest in someone as a person is a safety signal. Ask about their role, their business, or how long they have been in the job. On video you lose most of the body language, so compensate by looking at the camera and spending more time on the human part, not less.
Read culture and hierarchy before deciding someone is being difficult. In some cultures a spiral, indirect conversation is not agreement and is not evasion. It is difficulty saying no. Others expect deference or need room to get approval from above. Reading these dynamics as information rather than as an insult keeps you strategic instead of offended.
Park the hard issue and build momentum with the easier ones. When an issue clearly is not moving, say so and come back to it. You will know far more about the shape of the deal at the end than you do at the start, and a run of agreement makes the return conversation easier. Watch out for counterparties who want to open with the indemnity, because that is exactly when you have the least trust and the least information.
Make small concessions early to build reciprocity. Giving away a number of easy things creates a psychological debt you can call on when something important comes up. That works better than insisting every concession be acknowledged and traded one for one, which makes the whole relationship feel transactional. Generosity on the small things is cheap and it compounds.
Consider a neutral when the parties have genuinely stopped communicating. The signals are communication that has stopped, communication that escalates quickly into aggression, or a real failure of mutual understanding. You do not need a mediation clause to bring someone in, and some long-term contracts name a mediator in reserve at the start so the person is ready when needed. Before you go that far, ask what information the other side is working from, because information asymmetry explains a lot of positions that look irrational.
Name the damage and rebuild it out in the open. When you cause the problem, apologize and identify what you did rather than pretending it did not happen. When the problem is a blocked issue, tag it explicitly and ask the other side whether they want to set it aside or deal with it first. Breaking a contested provision into the parts where agreement is easy leaves a much smaller fight for later.
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