The market is tempting: 180,000 euros for the complete renovation of a school. Electrical work, plumbing, painting, carpentry. You are an electrician, you know that the electrical work is worth approximately 45,000 euros. But the tender is a single lot. Too big for you alone.
This is where the temporary grouping of businesses comes into play.
The TMG in 5 minutes
A temporary grouping of businesses (TMG) is a temporary association of several companies to respond together to a contract. It is not a company: no legal creation, no capital, no registration. It is a contract between professionals for a specific market.
Two forms exist:
The joint grouping — each member is responsible only for their lot. The electrician is responsible for the electrical work, the plumber for the plumbing. This is the most commonly used and simplest form.
The solidarity grouping — each member is jointly and severally liable for the entire contract. More risky, but sometimes required by the buyer for complex projects.
Establishing a grouping in 4 steps
1. Identify the necessary skills
Read the specifications and list the required skills. For our school renovation example:
- Electrical work (your specialty)
- Plumbing / heating
- Painting / coatings
- Carpentry / locksmithing
2. Find the right partners
This is the critical step. You need reliable, competent companies that are available during the contract period. Your sources:
- Your direct professional network
- Trade chamber directories
- Networking platforms like the Booster Network
- Subcontractors you have already worked with
3. Designate the lead partner
The lead partner is the single contact point for the public buyer. They coordinate the grouping, sign the contract, and manage the administrative relationship. Choose the member with the most experience in public contracts or the one whose lot is the largest.
4. Draft the grouping agreement
This internal document defines:
- The allocation of lots and amounts
- The responsibilities of each member
- The role and remuneration of the lead partner (generally 2 to 5% of the total amount)
- The schedule of work
- The billing rules
- The procedures for resolving conflicts
The advantages that public buyers appreciate
A well-structured TMG of local small businesses has arguments that large companies do not have:
- Proximity — members are on-site, responsive, involved in the local community
- Flexibility — small businesses adapt faster than large structures
- Knowledge of the terrain — you know the local specificities, regional regulations, site constraints
- Local economy — public buyers are increasingly sensitive to the local impact of their contracts (CSR criterion)
The pitfalls to anticipate
The defaulting partner — include in the agreement a replacement clause: if a member cannot fulfill their commitments, the lead partner can replace them.
Cascading delays — one delayed lot blocks the following ones. Impose internal penalties and regular progress checkpoints.
Grouped billing — the buyer pays the lead partner, who redistributes. If the lead partner has financial difficulties, the other members are blocked. Solution: ask the buyer for direct payment to each co-contractor (possible and common).
The TMG is a formidable weapon for small businesses. By combining your strengths, you gain access to contracts that were previously closed to you and you build collective credibility.