Getting JVs Right – Key Considerations

Introduction

Joint ventures are a popular means by which projects are undertaken in the ENR sector.

The term joint venture is not regarded as a term of art, but generally refers to a commercial arrangement between two or more entities wishing to execute a business undertaking together. The definition of a joint venture under English law, for example, covers a wide variety of collaborative business relationships, but would not usually encompass complete mergers or takeovers between two entities. The parties to a joint venture simply come together for a common purpose whilst maintaining their own individual and independent existence.

The most common reason for entering into a joint venture is where the resources and capital required to complete the project or undertaking in question are beyond one company's or individual's capacity and the pooling of resources, knowledge and experience and/ or capital and funding is required. Establishing a joint venture may also