Teaming Agreement
A Teaming Agreement can be used where two businesses agree to cooperate in submitting a proposal to a customer which has issued a request for tender.
5.0 (1 reviews)
Last updated December 20, 2024
Under 10 minutes
Suitable for Australia
Written by
Edwin Montoya Zorrilla
Reviewed by
Damin Murdock
Document Overview
A Teaming Agreement can be used where two businesses agree to cooperate in submitting a proposal to a customer which has issued a request for tender. Effectively, one party agrees to be the contracting party and the other agrees to be the subcontracting party in the event the joint tender is successful. Typically, the contracting party will be the one which has the greater stake in the bid, whilst the subcontracting party will be providing a smaller, yet critical, component of the goods or services being offered.
Factors to consider when drafting a Teaming Agreement
One important issue to be addressed in negotiations will be the question of whether the teaming arrangement is exclusive or non exclusive — in other words, whether either of the tendering parties is free to form an alliance with another bidder or alternatively to bid in its own name if it wishes.
While this document contemplates a specific project, which is the subject of the teaming arrangement, other teaming agreements might involve a broader form of alliance, by which the parties agree to explore the possibility of collaborating in a range of future, as yet unspecified, tenders. In such circumstances, it is necessary to determine the term of such an arrangement and the geographic area to which it applies.
The Legal Risk Score of a Teaming Agreement Template
Our legal team have marked this document as low risk considering:
- The agreement involves sharing and potentially modifying proprietary products, which could lead to disagreements or claims regarding ownership and usage rights, especially if the collaboration does not result in a clear outcome or benefit.
- The document outlines a cooperative framework between two parties, but without clear management roles or decision-making processes, this could lead to inefficiencies or conflicts during the project, especially under stress or tight deadlines.
- The continuation and success of the arrangement heavily depend on the approval of a proposal by an external customer, which introduces uncertainty and risk as the efforts of both parties might not result in a secured contract.
Teaming Agreement Checklist
Complete your free Teaming Agreement with our checklist
Ensure Proper Execution
Ensure that the agreement is signed by authorized representatives of both the Prime Party and the Second Party, as indicated in the execution section.
Notify Relevant Parties
Send a completed copy of the agreement to all relevant parties, including legal and management teams, to ensure everyone is informed and aligned with the terms.
Schedule Regular Reviews
Set up periodic reviews of the agreement's progress and the obligations of both parties to ensure compliance and address any issues proactively.
Prepare for Proposal Submission
Coordinate closely with the Second Party to prepare and submit the proposal to the Customer, ensuring that all necessary information and documentation are accurately and timely provided.
It's never been so easy
Sign-up to a free Lawpath account
Get started and we’ll take care of you. It’s that easy.
Collaborate with e-Sign and Sharing
Having access to your legal documents has never been easier. You can request e-signature, share the document and download for an efficient collaboration.
Create unlimited legal documents and eSignatures for only $39/month.
Upgrade to a Lawpath legal plan to boost your new business.
Here's what people say about Lawpath’s Teaming Agreement
Reviews are managed by BazaarVoice and comply with the BazaarVoice Authenticity Policy. Reviews are independently verified by BazaarVoice and detail our customers' real experiences.