The Art of Joint Venturing
With the expected uptick in large infrastructure projects because of an expected bi-partisan agreement on a federal infrastructure bill in 2017, it is imperative that contractors are prepared to participate in those opportunities. It is also expected that those projects will be larger in volume and of which might warrant the consideration of joint venturing between contractors. Metro Strategies was contacted by the Metropolitan Transportation Authority to provide a three (3) hour training session to contractors in the Manhattan area of New York City on the process of Joint Venturing. Over 25 small contractors attended this session and left with the necessary tools to craft their own joint venture language. A joint venture agreement is an agreement between two or more individuals or companies usually entered into with a specific goal in mind. Each party who enters into a joint venture agreement will want to maintain their separate business/entity and will enter into the business arrangement with a strategic goal in mind. In a joint venture, each party is responsible for their debts accrued and profit is typically divided between the parties under the terms of the agreement. It is prudent to draft a joint venture agreement governing the relationship and setting out the parties’ objectives and management of the project (including financial).