5 Must Haves In A Contractor Teaming Agreement

I have explained to you what a contractor teaming agreement is and how it is used in an earlier post here. Now I want to provide a few tips on specific elements that you must have in your agreement. A CTA is a valid contract that is meant to define the duties that are to be performed during, and post the contract by the participating parties. It is imperative that the agreement is written in order to maintain consistency. Entering into an agreement prior to having it formally written is not in any of the parties best interest. Check out a few must haves in your CTA:

  • Duties– Provide detailed specifics of each parties duties to be performed within the contract, this should also include which party will act as a prime.
  • Exclusivity– describe if the parties are allowed to subcontract or are only able to work with the the partners that

are cited within the contract.

  • Confidentiality– Cite protection of data and confidentiality rights. Rules of how all personal documentation will be maintained during and after completion of the contract is important.
  • Termination– Include the terms of terminating the agreement, for example when it ends,and begins, as well as rules and specifics on any violations of the contract.
  • Compensation– What each party is favorably expected to be compensated and any dates agreed upon to do so. Each formal agreement differs and should be arranged accordingly seeking legal representation may be required.

These are few helpful hints of what to include in your CTA, you should also consult an attorney in order to compose a more defined agreement that can provide you and your business protection should anything go wrong in the long run.

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Jaime Gracia

Other areas to consider are intellectual property (IP); who owns the rights to IP and the terms and conditions resulting from the agreement. Another area that would be of great importance is to have agreements that state the amount of work that each party will do (e.g FTEs) in the duties. This enforceable item would help primes from terminating subs, with or without cause, and allow subcontractors and teaming partners to have recourse for a breach. Some accountability would be favorable for the agreement to hold the parties accountable to each other.

Corey McCarren

I’ve been a contractor for a laboratory, and I’ve noticed that sometimes it isn’t so to do things like log hours and figure out pay. Some people use certain websites to hire contractors and are able to actually watch the persons screen while they’re working to make sure they are. The problem is what if I can do 8 hours of work in 5 1/2 compared to most people? Should I be getting paid less because I can do more work? On the other hand, it’s difficult to figure out what is worth a certain amount. How much is a tweet worth? Lots of people spend a little time every day not working, whether it’s water cooler buzz or ping pong. Should we be paid less because I’m not in an office.