Teaming agreement Template for South Africa

A Teaming agreement is a formal partnership between two or more companies working together on a specific project or tender opportunity in South Africa. It sets out how the companies will collaborate, share resources, and split responsibilities while maintaining their independent status - unlike a joint venture where companies form a new legal entity.

These agreements are especially common in government tenders and construction projects where companies combine their expertise and capabilities to meet tender requirements. The agreement must comply with South African competition laws and typically covers key aspects like profit sharing, intellectual property rights, and confidentiality. It's particularly useful when smaller firms want to partner with larger ones to access bigger contracts.

A Teaming agreement makes the most sense when your company lacks all the required capabilities or resources to bid on a major contract alone. This is especially relevant for South African infrastructure projects, mining contracts, or government tenders where technical expertise and BEE requirements come into play.

Use this agreement when partnering with other firms to combine strengths - like pairing technical expertise with local market knowledge, or joining forces to meet minimum tender requirements. It's particularly valuable for emerging companies looking to partner with established firms, or when you need specialized equipment or skills for just one project without forming a permanent joint venture.

• Primary Teaming agreements: Used for direct partnerships between two companies, outlining basic profit sharing and resource allocation
• Multi-party Teaming agreements: Structure collaboration between three or more companies, with detailed governance frameworks
• Project-specific agreements: Tailored for single contracts or tenders, with clear start and end dates
• Framework Teaming agreements: Set up long-term partnership structures that can apply to multiple projects
• Industry-specific versions: Modified for construction, mining, or IT sectors, incorporating relevant BEE requirements and sector regulations

• Lead Companies: Primary organizations initiating Teaming agreements, often established firms with strong market presence or technical expertise
• Partner Companies: Smaller or specialized firms bringing complementary skills, local knowledge, or BEE credentials
• Legal Teams: Corporate lawyers who draft and review agreements to ensure compliance with competition laws and tender requirements
• Project Managers: Oversee implementation and coordinate resources between partnering organizations
• Tender Committees: Government bodies or private organizations evaluating joint bids submitted under these agreements

• Project Scope: Document specific tender requirements, project timeline, and deliverables expected from each partner
• Partner Details: Gather company registrations, BEE certificates, tax clearance documents, and relevant licenses
• Resource Planning: List equipment, personnel, and expertise each party will contribute
• Financial Structure: Define profit-sharing ratios, payment terms, and cost allocation methods
• Risk Management: Outline liability sharing, insurance requirements, and dispute resolution procedures
• Compliance Check: Verify alignment with Competition Act and industry-specific regulations

• Parties and Purpose: Full legal names, registration numbers, and detailed project scope
• Roles and Responsibilities: Clear outline of each party's contributions, duties, and authority levels
• Financial Terms: Profit sharing ratios, payment schedules, and cost allocation formulas
• Duration and Termination: Project timeline, renewal options, and exit conditions
• Confidentiality: Protection of shared information and intellectual property rights
• Compliance Clauses: BEE requirements, Competition Act adherence, and industry regulations
• Dispute Resolution: South African jurisdiction, mediation procedures, and governing law

A Teaming agreement differs significantly from a Business Acquisition Agreement in both purpose and structure. While Teaming agreements create temporary partnerships for specific projects, Business Acquisition Agreements facilitate the complete purchase of a business or its assets.

• Duration and Commitment: Teaming agreements are typically project-specific and temporary, while a Business Acquisition Agreement represents a permanent transfer of ownership
• Legal Structure: Teaming partners maintain separate legal identities and collaborate only for specific objectives, whereas acquisitions merge or absorb one entity into another
• Risk and Liability: Teaming agreements share risks among partners for a specific project, while acquisitions transfer all business risks to the acquiring party
• BEE Implications: Teaming arrangements can temporarily combine BEE credentials, but acquisitions permanently affect the overall BEE status of both entities