Drafting a Teaming Agreement Part 1
If you are considering teaming with another firm to pursue a government contract, you must first decide which party will be the prime contractor and which will be the subcontractor. Finally, you must draft a legal teaming agreement to solidifying your arrangement. As Bradenton construction lawyers, we understand the complexity of teaming agreements and in this two-part series, we want to give you a basic overview of the clauses you’ll want to consider including in your agreement. Visit Part 2 for the remaining clauses.
Your purpose for linking with another company has to be apparent. Identify the scope of work and parties involved. Designate the prime contractor and subcontractor. Identify the project or program you are pursuing together.
Timelines and Termination
Since teaming agreements are temporary, be sure to clearly identify the agreement timelines by giving start and end dates. What constitutes a termination of the agreement prior to the specified end date? How will warranties and insurance be handled? Reasons for termination include but aren’t limited to:
- Disqualification of an involved party
- Contract cancellation by the awarding agency
- Mutual agreement to terminate
- Inability to come to proper agreements
Once the bid is won, the agreement should be exclusive between the parties involved regarding the project. Parties outside the arrangement are to be excluded. It also important to note that this means no other relationship is created outside of this agreement. Each party remains an independent contractor.
Because the parties involved would otherwise be competitors, a confidentiality clause is important. This clause ensures the protection of private and proprietary information is protected within the confines of the arrangement. Shared or new information should also be protected.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation