Teaming agreement

An agreement between firms to bid together, setting out who leads, who does what and how the work and money will be shared if they win.

Also called: Teaming arrangement

Related terms

Prime contractor

The firm that signs the contract with the buyer and is responsible for the whole job, even when parts are done by subcontractors.

Joint venture

Two or more firms forming a single bidding entity for a contract, sharing liability. Heavier than a teaming agreement, and sometimes needed for large tenders.

Consortium

A group of firms that bid together, with one usually acting as lead. Consortia let small firms meet turnover and capacity requirements they could not meet alone.