Do you need a teaming agreement to regulate the relationship between team members? Sometimes people realise that they have complimentary offerings and that a customer really needs both of them. In these circumstances, it often helps to team together to submit one proposal (or quote) to the customer. Sometimes, there are many potential customers who want the combined offering of goods or services.
It is crucial that the team members enter into a written teaming agreement to regulate their relationship regards winning the business. Many issues can arise and it is best to have agreed how you will deal with them.
Sometimes people call this a joint venture and it is a kind of joint venture, but not the one where a new JV entity is created and each team member becomes a shareholder of the new entity. Sometimes people call a teaming agreement a collaboration agreement, but collaboration is really when multiple people work collaboratively to create one thing (as opposed to separate and related things).
How you benefit from a Teaming Agreement
- Determine in whose name the proposal will be.
- Agree who will bear the costs relating to proposals.
- Define each of your offerings.
- Know who will contract with the customer as the prime contractor and who will subcontract to the subcontractor. Once the bid is won, the team members will have to sign both the prime and sub contracts.
- Make sure nobody can get cut out of the loop when the member of the team whose proposal has been accepted, fails to sign a subcontract with the subcontractor.
- Define the nature of the relationship – it is not a partnership or employment relationship.
- Specify who will own any intellectual property that is developed as part of the bidding process.
- Make sure your confidential information that is disclosed as part of the bidding process is kept confidential.
- Ensure the bidding process is managed correctly.
- Resolve disputes between team members easily.
How we can help you?
We can provide you with a:
- ready to sign teaming agreement for one opportunity,
- teaming agreement template you can use multiple times, or
- short teaming agreement letter template that records the essentials of the agreement between the team members.
It depends on the circumstances and what you want. A teaming agreement template can take various forms and be structured differently. It often takes the form of a master teaming agreement signed upfront with team engagements signed for each opportunity that arises. We can help you work out which one is right for you.
Remember a teaming agreement only relates to team members working together to bid. It does not deal with the actual goods or services:
- the team member (acting as the prime contractor) will provide to the customer, or
- the subcontractor will provide to the prime contractor.
Who does it apply to?
It is for people working together as a team to submit proposals to customers to get business.