Advantage Of Collaborative Agreements

5. Collaborative and contractual contracts can simply become uncontrollable because of their size and complexity. This problem itself could be divided into several aspects. Derivation and agreement of common specifications can be a major problem. So the bidding process can be incredibly difficult, even because of the size – the documents, the number of bidders, the whole evaluation process, etc. If the cooperation agreement is the “only game in the city” in its area of spending (see the “market effect” point above), then it becomes a huge exercise. And contract management can be just as difficult. For cooperation between organizations to be successful, both sides must offer something for the relationship. If you are involved in a situation where your partner enjoys all the benefits of your agreement, but makes no effort in return, you are in a bad business relationship.

Before entering into a cooperation agreement with a company, take the time to ensure that it can meet its requirements. Visit the company`s facilities to ensure it can be a productive partner. In some countries, national cooperation bodies have been given a strong mandate for the “forced use” of certain organisations; in other countries, it is still a very voluntary option for users, but in general, more adjudicator powers than ever before are using these collaborative bodies. Alliances and partnerships are first and foremost romantic in another sense: their education is largely based on hopes and dreams – which would be possible if certain possibilities were followed. Strategic and financial analyses contribute to a level of trust, but like all new companies, collaborative relationships draw much energy from the optimistic ambition of their creators. COMCO, a diversified Swiss services company, which sees a strong demand for clean-up in Eastern Europe, has been able to relive with enthusiasm the benefits of its joint venture with the American expert Martech. COMCO made the Martech joint venture an optimistic pivot of its future growth strategy and felt that Martech felt the same way. It was only later, when an injection of money was needed and Martech withdrew, that COMCO realized that his love was one-sided.

Eastern Europe was less important to Martech than to COMCO and further afield; Martech had also wanted quick returns.