What no one tells you about teaming on projects. There are surface questions that you'll ask,
but there are questions to the agreement that usually go unanswered. In this video, I'm sharing
three key points you must discuss and agree upon before starting the project. Let's get to it.
Hey, welcome back to the channel. If you are looking to grow your government contracting
business, make sure you subscribe to the channel, turn on the notification bell.
And while you're here, like this video. Now, today in this video, we're going to be
talking about teaming arrangements: project delivery, division of work, division of money,
expectations. I'm even going to break down what I shared with a client inside of my Government
Contract Accelerator program recently on this matter. At the end of this video, I'll put a link
so that you can check out the Government Contractor Accelerator program.
See if it's something that interests you, if it's something that you need. Also, inside of there,
it'll help you in implementing what I'm sharing with you today around teaming arrangements and
negotiating the deal. We cover that all in phase four of partnering inside of the program, and I'll
look forward to seeing you on the inside. So let's jump into why how you structure your
teaming agreement before starting the project is important. Quite frankly, leverage is lost once
you start the project. It's always better to have a clear understanding of all of the division of
everything involving the project at the beginning. I've seen relationships go south when there's no
clear agreement, nothing in writing as it relates to the division of the work, money,
everything involving the project. I mean, you have to have everything structured, agreed upon,
and written down. Everything to the T. It's really about dotting the I's and crossing your T's.
All right, so let's get to it. Secrets of profitable teaming on government contracts.
Yes, it works in the private sector too. All right, so the first thing I want to cover
is project delivery. Now we're covering three points here in this video, but there's a lot
more that you'll discuss as it relates to negotiating a deal, etching out your teaming
arrangement before you start working with another company. But I want to just touch on three key
points today that a lot of times go unanswered but they're very important to the deal.
In a recent group call with my Government Contract Accelerator clients, I had a student that had
negotiated a deal. She didn't tell me, but I had to have her go back and try to negotiate three
things. Which are those three things? I'm going to share with you here today because it's really
important to have everything clear. Clarity is key when you're doing teaming arrangements.
All right, so let's talk about the project delivery. This is the first thing you need to
discuss. How will all the paperwork be delivered? How will you handle communication between both
companies and the customer? The responsibilities, what role will each company play in the delivery
of this project and making sure everything goes off successfully, you meet your deadlines,
you stay within budget, how will all of those things be handled? You have to talk about it.
The second key point is division of work. What parts of the project will be performed by each
company? Then, if you're going to subcontract out some of the work beyond the two companies,
what company will the subcontractors fall upon? Will it be Company A or Company B? And it's
important. I'm telling you, that little key piece is important, and here's the reason why.
If the subcontractor say it falls upon their Company A, you know when you're bidding a
contract and you have subcontractors, you bring their numbers in low, and then you put your markup
on top of your subcontractor numbers. When you do that, you're putting your markup, it means profit.
Who gets that? That's why it's important for you guys to decipher and understand,
okay, this is the division of work, and so if you divide the work up 70-30, 50-50, whatever,
it doesn't matter. But if you're Company A, whatever work falls up under you and then
you then sub it out, then whatever profits fall within that would come to your company.
So that's why it's important to decide one, the division of work and where the subcontractors
will fall, under Company A or Company B. All right, I want you to comment below, have
you created a teaming relationship with another company? Comment below. Yes or no? No or yes?
All right, let's get into the third key point. Very important, money. Money, money, money. I'm
so surprised and even shocked at how many times I hear companies have teaming agreements in place,
but they haven't discussed money. We're in business to make money,
to make a profit, right? So I don't know how we would create a teaming relationship,
a teaming agreement on a project, and we haven't discussed the division of money.
It's very simple. What bank account will the money go in? You have two companies,
Company A, Company B. You team on a project. So where will your customer deposit the money?
Which bank account? Or will you get a joint bank account? Then who will handle the bank account?
Who will handle the invoicing? Who will handle the disbursement of funds to your subcontractors,
to your suppliers? And the disbursement to Company A and Company B? How will expenses be covered?
This is one point that goes unanswered a lot of times. Remember, a lot of times you have to float
the project until the project can float itself, which means you're going to have expenses at
the forefront that you're going to have to cover. Who's going to cover that, Company A or Company B?
Or will you divide it up, and how? Then, if you're floating the project until the
project can float itself, you are putting those expenses up front and you're paying for them.
How will you get that money back, and when? How will profits be divided?
At what point will you divide profits up? Usually in general, profits are not dispersed
until the project is completely closed out, the government has signed off and said, "Done deal."
All of your expenses have been taken care of, now you can actually see what profit you have left.
But then you have to ask yourself, what percentage of the profits will go to
Company A and Company B? And then you can disperse those profits accordingly.
All right. I hope that made sense for you guys. There you have it.
What no one is telling you about teaming on projects. If you like to learn more about how
you could implement teaming arrangements in your business, don't forget to check out my Government
Contractor Accelerator program. I'll put the link down below. You can learn all about the
various phases that I take you through, which is the five P's and how teaming arrangements
is covered within that phase, which is phase four of partner. You can also find out how you
can get started. Everything is right there on the page for you. You can get started today,
if you want to. So check it out. I'll put the link down below. Don't forget, subscribe to the channel
so that you can get notified when new videos drop. So you're going to hit the notification bell
and Like this video. All right? And remember, you're just one contract away. Bye for now.