THESE 12 THINGS WILL SAVE YOU A FORTUNE IN LEGAL FEES!
OK, Firstly I need to stress that we do fully support consortia’s and working together, in fact we’ve written an open letter to the Prime Minister about this very subject
This post however is to remind you that consortia’s only work well when put in very simplistic terms, everyone benefits and everyone is clear at the outset of what each other’s roles, responsibilities, resources and monetary share is.
Working together as multiple suppliers is one of the best ways of winning contracts that you wouldn’t otherwise have been capable of achieving on your own. It’s also one of the greatest ways of staying niche, and potentially small (we have to remember that not everyone wants to be the new Google in size or stature)
However consortia’s only work when all parties are getting along, so here’s some top tips for making sure that as a supplier consortia it works well with no fractions
- Agree the common goal (and write this down)
- Agree at the outset all of the roles that are needed (keep this headline if details are scant at the outset of the project)
- Agree which company will do what role(s)
- Agree and write down how the money will be divided
- Agree how you are going to collect payment (and who is going to do this)
- Consider and agree a reporting structure
- Agree how you will manage the client account
- Agree an exit set of terms (e.g. death / retirement / takeover of one of the companies) try and cover as many eventualities as you can think of!
- For each of the listed potential exit factors above agree an exit manner, timelines and process
- Agree who will manage the contract discussions with the client
- Agree who will physically administer the resource required
- Determine the process flow from enquiry to invoice.
Ocurem have managed consortia arrangements many times, and it never ceases to amaze us at the frustrations when the parties can’t compromise and agree, when we ask what has been agreed at the outset the answer is often “not enough!”
If you’d like to know more about consortia’s and how it’s best to manage them, please get it touch with us at email@example.com