Teaming Agreements

A recent article in The Construction Lawyer (Spring 2005, page 5 to 13) pointed out one case where a general contractor and subcontractor on entering into a teaming arrangement was deemed to have created the award of a subcontract, even though a subcontract was never executed! The subcontractor, at the last minute, was directed to lower its bid on a job awarded to the general contractor by an owner. The subcontractor refused and sought to enforce the higher bid. Lesson learned .... whether a prime contractor-subcontractor arrangement or a joint venture arrangement, courts will enforce such arrangements under both pre-contractual and contractual theories. Also note...such agreements may be subject to anti-trust considerations....