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A Project Collaboration Agreement is a contract between two or more companies for the completion of a particular project.
A Project Collaboration Agreement documents the contribution of each party to the project and sets out the terms of the collaboration between the parties, including each party’s obligations, the project funding, the treatment of confidential information, and how the collaboration can be terminated.
A Project Collaboration Agreement allows businesses to expand their client base and tap into new markets by partnering with other organizations and can address skill or resource gaps.
What should a collaboration agreement include?
A collaboration Agreement needs to have the following terms:
Details of the joint project: The details should include contributions and resources required by all parties, expectations from the party’s parameters of the project, and others.
Collaboration period and schedule: The time frame for the project along with the scheduled timeline and project deliverables at various times.
Confidentiality, exclusivity, and permitted use: Obligations to ensure that confidential or commercially sensitive content is not disclosed should be included in the agreement.
Reporting and project management: Formal reporting requirements of the involved parties along with meeting schedules, styles of reporting, and project specifics.
Payments: Key provisions about how funding will be provided, the amounts that each party has to contribute along with actions to be taken if the funding is not sufficient.
Intellectual property rights: A collaboration agreement needs to clearly state the ground rules for intellectual property that is being used or produced. There should be provisions to protect intellectual property rights.
Data Protection: Projects where personal data is used, stored, or transferred should include detailed data protection provisions to ensure that all parties are compliant and understand the data protection laws.
Non-solicitation: This could be useful in instances where a party feels the other could try to ‘poach’ their employees, sub-contractors, or consultants. A non-solicitation clause will set a period of time where the other parties cannot approach or solicit a party’s employees, consultants, or subcontractors.
Limitation of liability: A collaboration document should include provisions to limit any liability that might arise during the period of the collaboration agreement.
Disputes: Mention how the parties will process a situation if a dispute arises between them during a project should be laid out.
Termination arrangements: The provisions for termination are quite crucial in a contractual joint venture Parties need to think and prepare for a scenario that might want to terminate the agreement before the project has ended. There should be provisions for the termination in case of breach of obligation and so on.
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