Construction Joint Venture Agreements
A Joint Venture Agreement, in the context of the construction sector, is a contract between two or more parties who come together to undertake a construction project. The contract sets out the terms on which the parties will contribute to and enjoy the benefit of the joint venture. This will include specific responsibilities, the allocation of resources, the sharing of profits and losses, and the management of the project. We have deep experience of drafting and negotiating Joint Venture Agreements.
It is important to remember that a party to a Joint Venture Agreement will have separate interests to protect within the document. Each party will want to place risk on others and maximise their return. It therefore makes sense that each party should take legal advice on the Joint Venture Agreement that they are entering into,
Some of the key provisions that may be included in a Joint Venture Agreement include:
- Project scope and programme – including the specific scope of works and the timeline for completion.
- Resource allocation – how the resources required for the project will be allocated by and among the parties, including funds, plant & machinery and labour.
- Profit and loss sharing – how profit and losses will be shared among the parties, including the percentage of profit that will be enjoyed by each party and how any expenses will be reimbursed.
- Risk allocation – outlining how risks will be shared among the parties, including, delay and disputes with third parties.
- Project management – how the project will be managed, including the respective roles of the Joint Venture parties and the decision-making process.
- Dispute resolution – the mechanics by which the disputes between the Joint Venture parties will be resolved and what happens if there is a stalemate.
We are experienced at drafting and negotiating comprehensive, pragmatic Joint Venture Agreements. We regularly act for Landowners, Contractors, Sub-Contractors, Investors and other parties to Joint Venture Agreements. Get in touch if you would like to discuss a project that you would like to progress.