Drafting a Teaming Agreement Part 2
Entering a teaming agreement is a valuable way for independent parties to profit from government contracts. For this agreement to be successful, a teaming agreement must be well written. Our construction lawyers in Jacksonville are experts at drafting and reviewing legal contracts. We are happy to help you draft your legal document. In Part 1, we discussed the provisions you should incorporate into your agreement. In this second part, we’ll discuss more important clauses of teaming agreements.
Each party will have distinct responsibilities that need to be clearly outlined from the start. The prime contractor will generally take the lead, but there may be cases where the subcontractor can take the lead if they are experts in this area. Be clear about who will pay for, create, and submit the proposals. Identify who will be the point of contact and how reviews and presentations will be conducted.
You should explain how you’ll handle any disputes should they arise. Here you will address your process and choice of forum. Will you participate in arbitration or litigations?
Liabilities and Indemnification
At some point liability must be limited so that no excess or abuse occurs during a breach of contract by either party. Here you’ll address loss, incidental, expenses, and punitive damages.
Costs, Profits, and Losses
Your plan is to make a considerable profit as a team, but you’ll also incur some losses. These profits and losses must be addressed. Usually, this can be figured out based on the percentage of contribution for each individual party. Identify the costs and expenses each party is responsible for.
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.