From the Hotline: “I work in a company where there are a lot of external contractors. There are very strict rules. Internal employees cannot dictate which meetings they should attend. If they come … great! But they might now. The external contractors are from different companies, and they consider each other as competition.“
I’ve been on both sides of this situation — as an internal team member and as a contractor. It’s a tricky environment, especially in government agencies where strict contracting rules shape how everyone works together.
You’re often “not allowed” to dictate things like which meetings contractors must attend. If they show up for Scrum events, great. If not, that’s fine too. On top of that, when contractors come from different companies, they can see each other as competitors. That dynamic makes sharing, helping, and building real team spirit much harder.
If you’re facing this, you’re not alone. Here’s what has helped in my experience.
Start with the Contract
A surprising amount of these issues trace back to how the contracts are written. Agile ways of working often clash with traditional contracting structures, especially when penalties or rigid terms get in the way.
Before trying anything else, take a close look at the contracts between your organization and the contractors’ companies. In one case I experienced, the contract made it almost impossible to deliver successfully without someone getting penalized. The only solution was to escalate the issue and get the contract modified.
This is rarely something you can resolve on your own. Begin by raising it as a formal risk. Clearly describe the problem and its real impact on delivery, quality, and team performance. In many cases, you’ll need support from legal, procurement, or HR.
Work with What You Can Influence
While you wait for any contract changes, you cannot impose processes or mandate attendance. And honestly, that’s okay — agile was never meant to be forced on people anyway.
Instead, focus on building positive agreements rather than rules handed down from above. Two things that work well here are:
Working Agreements↗ Create a small set of positive agreements that the team can genuinely commit to. Keep them simple — ideally five or fewer to start.
Every agreement should complete the sentence: “We work best together when we…”
If someone cannot commit to an agreement, then it’s not really an agreement yet. Use the conversation to understand what people can commit to. This process itself builds understanding and reveals the real boundaries.
Simple Rules↗ Even when you cannot impose ceremonies, you can still create lightweight ways to keep the team coherent.
Turn shared values into practical habits. For example: If the team values transparency and staying informed, a simple rule might be: “Update each other every day.”
This could be a quick message in a Microsoft Teams or Slack channel rather than a formal stand-up. The key is having some structure so the group doesn’t lose cohesion. Without it, the team can quickly stop feeling like a team at all.
Internal competition (such as contractors eyeing future roles) can make things worse. It’s worth revisiting Patrick Lencioni’s The Five Dysfunctions of a Team — the lack of trust and fear of vulnerability often show up strongly in these mixed-team setups.
Use the Contract to Your Advantage
Most contracts already include requirements about how contractors track and report their work. Lean on those clauses. A contractor may not be required to join a specific meeting, but they almost certainly have obligations to keep the team and stakeholders updated.
If someone cannot commit to even basic ways of working that support delivery, that becomes a performance conversation for leadership and HR. Make sure you have clear data showing the impact — not just feelings, but observable effects on progress, quality, or team effectiveness.
In Summary
When working with external contractors under strict government contracting rules:
- Review and, if needed, challenge the contracting setup
- Build commitment through simple working agreements and lightweight rules
- Gather data on the real impact
- Raise risks early and make them visible to leadership, legal, or HR
Finally, approach these conversations with confidence.