Creating a new independent body
One option is for the consortium to be formally constituted as
an independent legal entity. This new entity is effectively owned
by the various partner organisations, and can bid for and enter
into contracts in its own right.
There are a variety of different operating models that can be
used, but the most common is to create a company limited by
guarantee, which may itself also be a charity. The individual
partners participating in the consortium will be the members of the
new company.
There are many advantages to creating an independent legal
entity. Creating a company limited by guarantee will enable the
consortium to manage risk, as the liability for the contract will
be passed to the new entity, limiting the liability of the
individual members to a nominal sum. As each partner organisation
becomes a member of the new entity, participants may feel that the
control and ownership of the project is on an equal footing as no
one
