Negotiating a Budget

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Creating a budget in clinical research is very detailed, organized and specific towards each individual clinical research trial. When coming up with a budget you need to know what your limit is and stick to it. Negotiating a budget can be difficult, both sides need to collaborate and discuss the necessary and reasonable funds for the trial. There are limits to a budget which include no construction, travel is limited, and overall cost can’t exceed a set limit. (1, 3)

It is important to develop a strategy through the whole negotiation process for a trial budget. Clinical trial budgets are very detailed, even down to the "nickel and dime" costs like copy machine ink. It is important to include all costs of a budget – study costs, patient cost, and miscellaneous costs. Having a strategy planned out and making sure everything is organized and covered will help when making a proposal to whoever funds the study. A budget proposal needs to be fair when covering study costs, otherwise if the budget is too overpriced the negotiations will go awry.

If the cost is higher than the sponsor’s proposal the researcher should be ready to justify the study costs. For some Institutions policy requires that salary sources match, thus PI salary fringe must come from the same source and the institution will take it regardless. The sponsor may not be aware of services specific to your institution, be prepared to provide an explanation of these services. If rates are capped be prepared to be flexible in other areas of the budget requirements.

Many sponsors give the negotiating person or CRO areas in the budget that can be negotiated and areas that cannot. Some sponsors have an upper % that the budget can be ...

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... is going on. Slowly come to a compromise with the sponsor, be nice and cooperative, and be prepared to compete for a fair settlement. (1, 4)

Cited sources –

1. Capp, Marshall B. "Ethical and Legal Issues in Research Involving Human Subjects: Do You Want a Piece of Me? -- Kapp 59 (4): 335 -- Journal of Clinical Pathology." BMJ Journals. J Clin Pathol, 18 Jan. 2006. Web. 11 Feb. 2012.

2. Bonham, Valerie H. "Legal Issue's in Clinical Research." NIH. 15 Jan. 2008. Web. 12 Feb. 2012.

3. "Developing Your Budget - Grants Process Overview." OER Home Page - Grants Web Site. U.S. Department of Health and Human Services, 6 Feb. 2012. Web. 11 Feb. 2012.

4. "15 Rules of Negotiation — Become A Master Negotiator." Become A Master Negotiator — Sharpen & Strengthen Your Negotiation Skills & Techniques. Everyone Negotiates, 24 May 2012. Web. 11 Feb. 2012.

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