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SUBCONTRACTS
AND TEAMING AGREEMENTS
:: The
practice of collaboration between businesses on government
contracts is quite common. Traditional subcontracts involve an
agreement in which one company goes after a contract and then
subsequently awards a portion of the work to another for
performance. Teaming agreements, on the other hand, involve two
or more parties agreeing to jointly pursue a contract or group of
contracts.
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Whether
you are dealing with a subcontract or a teaming arrangement, ensuring full understanding between the
parties on the nature of their agreement can get quite
complicated. Unfortunately, it is not at all uncommon for small
businesses encounter problems with subcontracts and teaming agreements
because many fail to appreciate the critical nature of the legal risks
and responsibilities they undertake in pursuing collaborative
arrangements on large government contracts which otherwise appear to
promise lucrative rewards.
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From
determining the parties' roles to allocating risk and working out
accounting standards, it is important for your company to pay close
attention to the details of any subcontract or teaming agreements you
enter. Always keep in mind that seemingly minor
provisions in an agreement can suddenly become a major problem when
disagreements or misunderstandings occur between parties on a
project. Such circumstances often underlie the difference
between a lucrative project and a financial nightmare. Give
Federal Access a call to see how we can assist your company work
through the issues of preparing or resolving disputes in connection
with subcontracts and teaming agreements.
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