Teaming Agreements and Joint Ventures
How construction firms combine to pursue larger federal contracts — and the rules that govern them.
Few small construction firms can do everything alone. Teaming lets you combine capacity, experience, and past performance to pursue work too large or too specialized for one firm.
Two common structures
- Prime and subcontractor — one firm holds the contract and subcontracts portions to others. Clear scopes, flow-down clauses, and payment terms are essential.
- Joint venture — two or more firms form a separate entity or a compliant joint venture to bid as one. The government recognizes joint ventures for small-business status under specific rules, including the mentor-protégé program.
Get the agreement right before you bid
Define who leads, how work and profit are shared, how decisions are made, and what happens if the team dissolves. For small-business set-asides, the joint venture must meet the size and control rules; paperwork drafted after an award is often a problem.
Make the team credible
Requestors want to see that the combined team can deliver. Present the team's collective past performance and the specific roles each member will play.
General information for construction small businesses, not legal advice.