Citizen Media Watch

december 6th, 2020

Construction Teaming Agreement Template

Posted by lotta

Team agreements in the construction world, also known as team agreements, are agreements between two or more independent companies to combine their resources, skills and knowledge to obtain a competitive bidding contract and, if successful, to execute. If done correctly, team agreements can help these companies become more competitive in the bidding process and ultimately secure large construction contracts, including those awarded by the federal government. A principal subcontractor agreement is established when a principal contractor has agreed with one or more companies that it will act as a subcontractor (s). Unlike a joint enterprise agreement, the agreement between the principal contractor and the subcontractor does not involve joint control, shared ownership, common benefits and shared responsibility. Once the type of equipment agreement has been chosen, the parties must focus on the main provisions that are contained. Although these provisions and the complexity of the equipment agreement vary depending on the construction project, the parties should consider including the following essential provisions: when two or more companies are considering cooperating, companies must first decide what type of equipment agreement is in their best interests. Team agreements are generally considered in two fundamental categories: a joint venture agreement or a ”prime contractor subcontractor” agreement. A joint enterprise agreement allows contractors who do not have the capacity to engage or financial security to participate meaningfully in the awarding of important work contracts. It should be noted, however, that each partner of the joint venture is responsible for any losses or damages incurred. In addition, while a joint venture may consist of qualified and licensed firms, it is a separate organization that must itself be duly licensed in the State of Florida in order to avoid the rights to unleased contracts.

No. 489.521 (2) (a) Fla. Stat. Given the complexity of the team agreements and the above case law, it is important that an experienced lawyer develop a team agreement to ensure that the agreement is clear and legally applicable. Team agreements that are not comprehensive, final and clear enough may be considered unenforceable. For example, the Florida courts have deemed team agreements to be ”agreements of agreement” and therefore unenforceable when the ”agreement” stipulates that the parties will enter into negotiations on a subcontract after the main contract is awarded. See Alpha Data Corp. v. HX5, L.C., 139 So.3d 907 (Fla. 1st DCA 2013) (on the grounds that the team agreement was an agreement that had to be reached because it contained a provision that the prime contractor ”would make its best efforts to negotiate a sub-contract… 30 days after the contract is awarded”). A joint venture agreement is concluded when two or more companies form a new entity that acts as the main contractor.

This joint enterprise agreement includes shared control, shared ownership, common benefits and shared responsibility. The prime contractor is solely responsible for the execution of the project and the execution of the contracts with the owner. The subcontractor remains independent of the main contractor and is only responsible for the completion of part of the project, as indicated in the subcontracting with the main contractor.



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