When two companies want to pursue an opportunity together, especially in government contracting, the collaboration itself is usually the easy part. Choosing the right structure is where the real risk lives.
A joint venture (JV) often creates a shared business enterprise with shared control and potential partner-like liability. A teaming agreement (TA) is typically a contractual collaboration, often prime/sub, that can be faster to set up, easier to unwind, and narrower in scope. But a TA can also fall apart if it’s drafted like a vague promise to negotiate later.
Choosing the right structure for a business collaboration isn’t always straightforward, and getting it wrong can create legal and financial headaches. Whether you’re considering a joint venture or a teaming agreement, understanding the differences is critical. Let’s take a closer look at how JVs and TAs compare.