What is a sponsored contract?

A sponsored contract, that is, a lifelong sponsorship contract is basically an agreement where a company (the sponsor) releases resources to another (the sponsor) in exchange for something juicy, almost always visibility for its brand or its products. It is like that treatment of "I help you, but I noticed that I was me."

When we talk about public tenders, these contracts usually appear in large projects that cost a paste. The government or whoever seeks private allies not to load with all the brown, so they share expenses and risks. In return, the sponsoring company can paste its logo everywhere, take a slice exploiting the project, or even keep part of what is won. It's not bad, if you think about it.

For companies, it is a tremendous opportunity because they can get into huge projects without leaving the savings of a lifetime. Of course, there is also a trap: the sponsor has to fulfill yes or yes what it promises, or the sponsor is thrown over. You can't go there signing things and then get the madman, go.

Therefore, the contract has to be well tied. No ambiguities: clear rights and duties, payment conditions, how long the bargain lasts, what happens if someone puts the leg ... the typical, but even more here because there is a lot of pasta and reputation at stake.

In many countries, the law requires that these contracts, if they are in the public sector, are awarded through public tender. That is, you have to do everything in sight so that no one thinks there are scams. Several companies present their proposals, the administration reviews them, and then decides who takes the cat to the water.

Total, that sponsored contracts can be a mine for companies that know how to move in public tenders: more visibility, possible benefits, and they participate in important projects. But be careful, not everything is pink; There are risks and you can't go crazy. Better surround themselves with lawyers and people who know about this before throwing themselves, because a false step and can be expensive.