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Published on 12-Aug-12 12:45
By Gavin Tosh

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Home » Awareness » Getting Business » Collaborative Tendering: Part 4

Collaborative Tendering: Part 4

Developing a formal agreement

The process of developing a collaboration can be lengthy and fraught with difficulties. From a legal perspective, clearly you will need to have quite detailed discussions with other parties before you can all assess whether you are right for each other. You will each need to disclose potentially commercially sensitive information so it is important that you have a confidentiality agreement/NDA in place. This is a binding agreement defining confidential information, the limits on its use by the parties and disclosure to third parties. Then, if the discussions are positive you could have non-binding heads of terms or a letter of intent recording the principles of what you have agree and what you are going to do.

When discussions are at a sufficiently developed stage, it is suggested that a Teaming Agreement is  drawn up. Essentially a Teaming Agreement is a written record of how the parties are going to work together to achieve the goal which would have been beyond them individually, the goal of winning the tender.  Being able to point to such documentary evidence of having thought through and agreed how you are going to work together – to offer the customer the same benefits as would a single large organisation - can be the basis, the key to overcoming the customer concerns outlined in the last article.

 There several other reasons why a Teaming Agreement is essential. It for example:-

  • forces parties to think about all the issues
  • gives a written reference for who is doing what, both in the preparation of the tender and subsequently once the contract is awarded
  • builds relationships
  • locks in team members, prevents them from competing
  • locks out competition
  • provides ammunition in event of bad faith by any of the parties
  • is a precursor to a contract, which is then much easier to implement

Nothing in this awareness article is intended as legal advice. If you have a specific legal requirement or query you should consult a solicitor directly.