Teaming Agreement: Pros and Cons
Jump to Section
Quick Facts — Teaming Agreement Lawyers
- Avg cost to review a Teaming Agreement: $650.00
- Lawyers available: 33 business lawyers
- Clients helped: 16 recent teaming agreement projects
- Avg lawyer rating: 5.0 (4 reviews)
What is a Teaming Agreement?
A teaming agreement is a legal contract entered into by a government contractor and another party. These agreements are very common in government related contracting and are used by contractors who want to find work with partners, pool resources, share risks, and enhance competitiveness in government contracting that can ultimately increase the effectiveness of their job(s). The Federal Acquisition Regulation (FAR) provides guidance on government contracts, which includes subcontracting.
Read this material if you are interested in learning more about teaming agreements.
Pros and Cons of Teaming Agreements
Teaming agreements can be extremely beneficial for some contractors but can also have negative elements depending on the situation. Below are some pros and cons of teaming agreements:
Pros of a Teaming Agreement
- Allows a contractor to build a team by partnering with an individual or firm that can contribute their resources, skills, and knowledge in a particular area.
- Teaming agreement parties are pretty much obligated to perform the work they agree upon with one another without worrying about any other employee being brought into the picture for the same job.
- The parties to the agreement can add as many means for termination sections to the contract as they feel are appropriate.
- Individuals or companies are able to bring their diversity and differing mindsets to the table to get a job done without having to work for the same entity right off the bat.
- The contractors are asked to provide an estimate for what the costs will end up being upfront so that risks are minimized.
- As long as subcontracting laws are followed the teaming agreement parties will not be viewed as affiliates so small business rules will not be of concern for the temporary workers.
Cons of a Teaming Agreement
- The sections need to be very carefully written or they otherwise may not have legal standing in the event one of the teammates wants to dispute a matter in court. There have been prior incidents where this happened and the court found that certain parts of the agreement were not enforceable.
- The agreements typically only apply to one project or group of tasks making it necessary to renegotiate every time a new job is proposed unless you structure the agreement to cover multiple projects or cover a long-term partnership between the parties. If not, this may mean that each time a new agreement is put into place a new teaming agreement will need to be discussed and put into writing.
- A subcontractor who was hired by the main (prime) contractor may not come to agreeable terms which can make the process difficult, which is a risk any time you are working with subcontractors and contractors.
- If a contractor other than the main one becomes part of the team to complete certain work and does not do too great of a job the blame will fall on the prime contractor since this individual is the only person contracted with the government.
To get a better idea of the positive and negative sides of a teaming agreement you can view this article.
CC verified
Key Terms in a Teaming Agreement - Checklist
The checklist below is a guide for what key topics you should include in a teaming agreement for completeness and effectiveness:
- Purpose: a clearly explained goal with the reason for establishing a partnership to accomplish it.
- Duration: state how long the job will last and what the anticipated start and finish dates are.
- Scope of work: describe in detail what each party will be expected to do and what milestones exist for completion of selected tasks.
- Pay schedule: state what payments will be made to who and when.
- Exclusive relationship: add a part in the agreement that leaves no room for confusion about whether the same contract is allowed to be worked on elsewhere with someone different.
- Proposal fees and charges: mention how the proposal costs will be paid and who will pay for what.
- Privacy: add notes stating if anything will not be considered confidential information and can be shared or vice versa.
- Legal components: identify and make known all the laws, regulations, and compliance aspects that apply to the teaming agreement members and share how or where they will be used if a reason arises.
- Insurance: include a section that specifies who will be responsible for work related insurance as well as all details surrounding it such as the total cost and types of coverage.
- Liability limitations: if there will be limits as to the liability that can be placed on one or more team members then this section should be attached to the agreement with specifics on the extent and type of limitations.
- Tax costs: note the amount of taxes and which ones each party will pay and state what penalties one will face if they do not pay as required.
- Assignments: this section should be visible in the agreement so that no one is left wondering whether duties set out can be assigned out.
Visit this webpage to learn more about what to include in a teaming agreement.
Teaming Agreement Template
100% Lawyer Drafted
100% Lawyer Drafted
Teaming Agreements vs. Joint Ventures
A joint venture differs from a teaming agreement because it involves two or more companies who create a totally separate legal business to assume position as a prime contractor. Members of the joint venture have similar levels of control, liability, and profits.
On the other hand, a teaming agreement consists of only one prime contractor who maintains control over a subcontractor who does not share the same level of responsibility for performance, profit, direction, or liability.
Read this article for a detailed description of teaming agreements compared to joint venture agreements.
Image via Pexels by Thirdman
Teaming Agreement vs. Subcontract
A teaming agreement is a legally binding agreement between a prime contractor who coordinates directly with a government contact opposed to a subcontractor who is actually monitored and taken on by the prime contractor. A subcontractor does not have any connection to the government partner like the prime contractor does. Primary differences of the two contracting types are displayed below:
Teaming Agreements
- A GSA schedule must exist and the business or individual must be registered with the federal system known as SAM.
- Responsibilities are determined based on what is in the agreement.
- The government can be directly contacted for work being performed.
- Payments are made based on the rate listed in the agreement, an order, or the GSA schedule.
- Work can be completed in full due to the team efforts of all parties connected to the teaming agreement.
Subcontracts
- No GSA or SAM registration is required.
- Responsibilities are agreed upon but the subcontractor is not held accountable for insufficient work.
- The subcontractor cannot interact directly with the government and any questions or concerns must go through the prime contractor.
- Payments are made in line with the GSA schedule after any relevant subtractions are made.
- Supplies and services may be limited based on relying on only the prime contractor and not having a larger enterprise.
Examples of When to Use a Teaming Agreement
You should use a teaming agreement under the following circumstances:
- You as a prime government contractor are seeking a subcontractor to perform a specific task under your direction that is aligned with an active federal contract.
- You and other contractors involved want to bring your skillsets together to find a total solution and have numerous resources at your fingertips.
- You want to boost your competition and reputation as a contractor by working with others who are highly regarded.
- You want to possibly become part of a master teaming agreement that will allow you to broaden the duration and scope of your federal contract.
Get Help with a Teaming Agreement
If you believe a teaming agreement is right for you then you should reach out to a knowledgeable government contracts lawyer who specializes in reviewing and writing them. Post a project in ContractsCounsel’s marketplace to get free bids from vetted lawyers to draft or review a teaming agreement.
See Real Teaming Agreement Projects
California Service contract drafting project Drafting
- California
- 7 lawyer bids
- $495 - $1,250
ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.
Meet some of our Teaming Agreement Lawyers
Anand A.
Anand is an entrepreneur and attorney with a wide-ranging background. In his legal capacity, Anand has represented parties in (i) commercial finance, (ii) corporate, and (iii) real estate matters throughout the country, including New Jersey, Pennsylvania, Delaware, Arizona, and Georgia. He is well-versed in business formation and management, reviewing and negotiating contracts, advising clients on financing strategy, and various other arenas in which individuals and businesses commonly find themselves. As an entrepreneur, Anand is involved in the hospitality industry and commercial real estate. His approach to the legal practice is to treat clients fairly and provide the highest quality representation possible. Anand received his law degree from Rutgers University School of Law in 2013 and his Bachelor of Business Administration from Pace University, Lubin School of Business in 2007.
"Anand was a pleasure to work with! He was very thorough and professional."
Alton H.
I am a U.S.-licensed attorney with more than a decade of experience in complex litigation and intellectual property matters. I have practiced at leading Am Law firms including Pillsbury Winthrop Shaw Pittman, Arent Fox, and Sughrue Mion, and I currently operate my own law practice. I have extensive experience handling high-stakes patent litigation, drafting pleadings and briefs, managing large-scale discovery, preparing and defending depositions, and appearing before federal courts and administrative bodies such as the PTAB and ITC. I hold a J.D., cum laude, from The George Washington University Law School and advanced technical degrees in chemistry and chemical engineering, which allow me to efficiently handle technically complex matters. I am admitted in multiple jurisdictions, including New York, Virginia, New Jersey, and the District of Columbia, and I regularly provide high-quality remote legal support to clients nationwide.
"Great responsiveness and dedication to finalizing project goals."
Jason H.
Jason has been providing legal insight and business expertise since 2001. He is admitted to both the Virginia Bar and the Texas State Bar, and also proud of his membership to the Fellowship of Ministers and Churches. Having served many people, companies and organizations with legal and business needs, his peers and clients know him to be a high-performing and skilled attorney who genuinely cares about his clients. In addition to being a trusted legal advisor, he is a keen business advisor for executive leadership and senior leadership teams on corporate legal and regulatory matters. His personal mission is to take a genuine interest in his clients, and serve as a primary resource to them.
"Wonderful attorney! He was extremely professional, answered all of my questions and was patient with my complicated legal situation. Don’t hesitate to hire him."
Keidi C.
Keidi S. Carrington brings a wealth of legal knowledge and business experience in the financial services area with a particular focus on investment management. She is a former securities examiner at the United States Securities & Exchange Commission (SEC) and Associate Counsel at State Street Bank & Trust and has consulted for various investment houses and private investment entities. Her work has included developing a mutual fund that invested in equity securities of listed real estate investment trusts (REITs) and other listed real estate companies; establishing private equity and hedge funds that help clients raise capital by preparing offering materials, negotiating with prospective investors, preparing partnership and LLC operating agreements and advising on and documenting management arrangements; advising on the establishment of Initial Coin Offerings (ICOs/Token Offerings) and counseling SEC registered and state investment advisers regarding organizational structure and compliance. Ms. Carrington is a graduate of Johns Hopkins University with a B.A. in International Relations. She earned her Juris Doctorate from New England Law | Boston and her LL.M. in Banking and Financial Law from Boston University School of Law. She is admitted to practice in Massachusetts and New York. Currently, her practice focuses on assisting investors, start-ups, small and mid-size businesses with their legal needs in the areas of corporate and securities law.
"Received very meaningful advice and I hope to work with you in the future."
Michael M.
www.linkedin/in/michaelbmiller I am an experienced contracts professional having practiced nearly 3 decades in the areas of corporate, mergers and acquisitions, technology, start-up, intellectual property, real estate, employment law as well as informal dispute resolution. I enjoy providing a cost effective, high quality, timely solution with patience and empathy regarding client needs. I graduated from NYU Law School and attended Rutgers College and the London School of Economics as an undergraduate. I have worked at top Wall Street firms, top regional firms and have long term experience in my own practice. I would welcome the opportunity to be of service to you as a trusted fiduciary. In 2022 and 2023, I was the top ranked attorney on the Contract Counsel site based upon number of clients, quality of work and number of 5 Star reviews.
"Michael did a great job creating my "Subdealer Agreement" - & in a timely manner. Thanks again for all your help!"
February 12, 2024
Lissette E.
Lissette's legal career, spanning over a decade, is distinguished by her significant achievements in civil litigation and her versatile practice in immigration and corporate law. She has demonstrated a formidable presence in the courtroom, securing a verdict of over two million dollars for a client and settling claims totaling more than three million dollars against insurance companies. She is proficient in complex litigation and corporate matters, assisting corporations with entity formation and regulatory compliance. Her work ensures that businesses not only start on a solid legal foundation but also maintain adherence to legal standards as they grow and evolve. Lissette's tenure at the Department of Justice has also been particularly influential. Working directly with immigration judges, she has developed a nuanced understanding of immigration policies and law, enabling her to craft winning strategies that address the unique challenges faced by her clients. Her career is further enriched by her previous teaching engagements at the Maurice A. Deane School of Law at Hofstra University, where she shared her comprehensive knowledge and experience with aspiring lawyers. Lissette's multifaceted expertise underscores her deep-rooted commitment to legal advocacy and excellence, making her a valued counselor and advocate. Known for her tailored client solutions, Lissette achieves successful outcomes across various legal domains.
February 23, 2024
Deborah S.
My name is Deborah Schwab, and I am an experienced attorney with a background in real estate, contract negotiation, and corporate governance. Currently, I am a transactional counsel with Priscott Legal, LLC, the partner law firm of Ontra.ai. In this remote role, I represent private equity and VC firms and negotiate a high volume of non-disclosure agreements, joinders, and other legal contracts. Prior to this, I served as legal counsel for PennTex Ventures, LLC, where I was responsible for negotiating, drafting, and reviewing contracts and agreements for sales and acquisition of real estate, lease negotiation, and resolving issues involving ancillary transactions. As the first in-house counsel for PTV, I was responsible for all legal and compliance matters and managed outside legal counsel. Before joining PennTex Ventures, I worked as real estate counsel for 84 Lumber & Nemacolin Woodlands, Inc., where I acquired eleven properties with a portfolio value in excess of $15 million. Prior to this, I spent several years as an attorney and supervisor at CNX/Consol Energy, where I worked as a title attorney, trained and managed a team of title attorneys/analysts, conducted due diligence for large land transactions, and identified business/legal risk exposure for multi-state projects. I received my Juris Doctor from Duquesne University and hold a Post Baccalaureate Paralegal Certificate from the same institution. Additionally, I earned a Bachelor of Arts from the University of Pittsburgh. I am also a court-appointed special advocate working as a volunteer with children who are in the foster care system. Thank you for taking the time to view my profile. I am always open to new opportunities and would be happy to connect with you.
Find the best lawyer for your project
Browse Lawyers NowLawyer Reviews for Teaming Agreement Projects
Teaming Agreement
"Was very responsive and detailed in review of the legal document."
ContractsCounsel User
Teaming Agreement Review
"Dolan is awesome and very flexible. I would re-hire him for future projects. Thank you for your support."
ContractsCounsel User
Service contract drafting project
"Michael did a great job creating my "Subdealer Agreement" - & in a timely manner. Thanks again for all your help!"
ContractsCounsel User
Business Contracts
Teaming Agreement
New York
Can a Teaming Agreement be enforced if one party fails to fulfill their obligations?
I am currently considering entering into a Teaming Agreement with another company for a joint business opportunity. However, I am concerned about the potential risks involved if one party fails to fulfill their obligations outlined in the agreement. I want to understand if a Teaming Agreement can be legally enforced and what options I have to protect my interests in case of non-compliance by the other party.
Damien B.
Hello. This is Damien Bosco, Esq. My law office is located in Long Island City. Teaming Agreements can be enforceable in New York, but their enforceability depends on how they are drafted and the specific obligations outlined within them. Courts in New York will assess whether the agreement is sufficiently detailed to constitute a binding contract or merely an agreement to agree in the future. The language in the agreement should reflect that both parties intend for it to be legally binding. If the agreement is enforceable, the non-breaching party can sue for damages or specific performance (if applicable). Keep records of all communications and actions related to the agreement. To maximize the enforceability of your Teaming Agreement and protect your interests, it’s advisable to have an attorney draft or review the agreement. This ensures it aligns with your goals and minimizes potential risks. Would you like assistance drafting or reviewing the agreement?
Business
Teaming Agreement
New York
Can you explain the key provisions that should be included in a Teaming Agreement for a joint venture in the construction industry?
I am currently in discussions with another construction company to form a joint venture for a large infrastructure project. We have decided to enter into a Teaming Agreement to outline the terms and conditions of our collaboration. However, I am unsure about the key provisions that should be included in this agreement to ensure a fair and mutually beneficial partnership. I want to make sure that the agreement covers important aspects such as the scope of work, responsibilities, intellectual property rights, dispute resolution, and termination clauses. Can you please explain the essential provisions that should be included in a Teaming Agreement for a joint venture in the construction industry?
Damien B.
Hello! This is Attorney Damien Bosco. My law office is in Forest Hills, Queens County, New York City. My practice covers the New York City metropolitan area and Long Island. I also handle matters throughout New York State. A Teaming Agreement for a joint venture in the construction industry should be comprehensive and detailed to ensure clarity and prevent disputes. Some key provisions that should be included are: 1. Purpose and Scope of the Agreement 2. Roles and Responsibilities 3. Management and Decision-Making 4. Financial Contributions and Profit Sharing 5. Intellectual Property Rights 6. Confidentiality and Non-Disclosure 7. Compliance with Laws and Regulations 8. Dispute Resolution 9. Termination and Exit Strategy 10. Insurance and Liability 11. Amendments and Modifications 12. Miscellaneous Provisions I handle business law issues, contract reviews, and commercial matters. I have drafted and reviewed a multitude of agreements. If you want, we can discuss options moving forward.
Quick, user friendly and one of the better ways I've come across to get ahold of lawyers willing to take new clients.
View Trustpilot ReviewHow It Works
Business lawyers by top cities
- Austin Business Lawyers
- Boston Business Lawyers
- Chicago Business Lawyers
- Dallas Business Lawyers
- Denver Business Lawyers
- Houston Business Lawyers
- Los Angeles Business Lawyers
- New York Business Lawyers
- Phoenix Business Lawyers
- San Diego Business Lawyers
- Tampa Business Lawyers
Teaming Agreement lawyers by city
- Austin Teaming Agreement Lawyers
- Boston Teaming Agreement Lawyers
- Chicago Teaming Agreement Lawyers
- Dallas Teaming Agreement Lawyers
- Denver Teaming Agreement Lawyers
- Houston Teaming Agreement Lawyers
- Los Angeles Teaming Agreement Lawyers
- New York Teaming Agreement Lawyers
- Phoenix Teaming Agreement Lawyers
- San Diego Teaming Agreement Lawyers
- Tampa Teaming Agreement Lawyers
ContractsCounsel User
Contractor
Location: Georgia
Turnaround: Less than a week
Service: Contract Review
Doc Type: Teaming Agreement
Page Count: 8
Number of Bids: 2
Bid Range: $250 - $500
User Feedback:
ContractsCounsel User