David Fine Authors Chapter of ABA Book, "Construction Subcontracting, A Comprehensive, Practical and Legal Guide"

The construction industry is a difficult and often unpredictable environment to navigate. Contractors are exposed to risks such as labor disputes, work stoppages, unreliable subcontractors, and poor or unpredictable weather. Pricing and costs are often based on rough estimates and second- or third-hand information. Workers have to mobilize in remote and unfamiliar locations. Simply put, contractors face greater risk, and are more susceptible to failure, than those in other industries.
 

One avenue through which contractors are able to compete and thrive in such a dynamic environment is by teaming with other contractors. The term “teaming arrangement” generally refers to various types of strategic alliances contractors form to enhance efficiency, exploit complementary capabilities, and ultimately increase competitiveness.