Joint Venture Agreement For Construction

Once a contractor has identified a potential joint venture partner, the first question will likely have to be asked about how they intend to structure the joint venture. The partners of the joint venture may opt for a purely contractual relationship (i.e. without the creation of a separate joint venture) or for the creation of a joint venture in which each joint venture partner participates. There are many reasons why contractors may try to create a joint venture. In some cases, it is only a business decision because it allows a contractor to share the risk and increase its purchasing capacity, either in relation to a given project or more generally. In other circumstances, this is a necessity when contractors with particular skills or experience must seek partners with other qualifications to demonstrate the breadth of experience indicated in the tendering file, or where local legal requirements provide that contracting entities must have specific local representation. Tasks. The partners of the joint venture will accept responsibility for their own share of the work, although they both register as the main contractors in the contract awarded, that they are jointly responsible to the employer in the event of a problem. However, the responsibility is then distributed in accordance with the agreement of the joint venture.

Where the parties have duly registered their joint venture, whether through a joint enterprise agreement or a shareholder agreement, the simplest means of recourse based on that agreement is, in almost all cases, the simplest way. For such a claim, the full range of usual remedies should be available, including damages, specific benefits and/or an injunction. Full business and accounting documents must be kept and kept at all times at the joint venture`s office. All recordings [JointVenture.Name] must be accessible at all times to each party and its authorized representatives. Both parties agreed to hire an independent agency to conduct a full audit of [JointVenture.Name` records each year. Exit – If a quick exit from a failing joint venture is important, this can lead the parties to favour a purely contractual joint venture, as it may be easier to leave it depending on the terms of the contract, as it is not the need to liquidate a joint venture. However, the process of pursuing a project, if your partner is late, can be much easier if there is a company that you can control rather than trying to take over the work done on behalf of your partners. If the joint venture is not incorporated, it is also important to define which partner Eader will play in the joint venture, what exactly this means and to what extent the leader is responsible for the actions in this regard vis-à-vis the other partners of the joint venture.

As a general rule, the scope of the leader`s responsibility to the other partners of the joint venture is limited.

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