In 2012, CGI signed a cooperation agreement with FCi to jointly develop a contract proposal from the Department of Foreign Affairs for which FCi would be the main contractor and CGI as a subcontractor. FCi retained the exclusive rights to finalize the proposal and negotiate with the government any major contracts that would result. When a potential subcontractor has bargaining leverage, it should insist on a team agreement that imposes a subcontract when the team leader receives the main contract. The parties signed an amended agreement on the consolidation of these new conditions, but the other terms of the original team agreement have not changed. With CGI`s help, the FCi prepared a revised proposal to the government. A team agreement is an agreement between companies to pool resources to obtain and execute a government mandate. They generally exist between a company competing with a high-level contract and a potential subcontractor or joint venture. Team agreements generally focus on the tasks of preparing the proposal, the distribution of work after allocation, the exclusivity of the team agreement and the conditions of subcontracting in case of subcontracting. A subcontract is a legally binding agreement that defines the work to be done, the pricing, the delivery requirements, the expiry clauses and the procedures for resolving subcontracting disputes. The court also rejected CGI`s undue enrichment application and found that the company could have revoked the amended team agreement as a result of the fraud, but upheld the contract and sued for damages. An applicant cannot apply for unjust enrichment in Virginia if there is an explicit, enforceable contract on the object. The CGI Federal case confirms that potential subcontractors should negotiate the essential subcontract terms with the team contract and minimize all subcontracting conditions. In today`s competitive construction industry, companies choose to partner with outside parties to pursue government contracts.
However, the complexity of each contract must be understood before it enters. It`s always a good idea to get help from a brandon lawyer who can give an invaluable insight into the contracts. We give you an overview of the team agreements and discuss some of the pros and cons of these agreements. Cooperation in agreements can be a way for companies to succeed. There are advantages to cooperation with other parties. Some of them are: The terms of the CGI-FCi team agreement, as reported by the court, are fairly typical.