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Hello Classmates,

A joint venture (JV) is when two or more parties agree to form a business arrangement with the purpose of pooling their resources together (Sweet, 2015, P.22). This can be done for a “one-time” project or a long-term arrangement only lasting 5-7 years. There are various basic types of joint venture; limit, separate joint venture, equity, contractual, and business partnership. In reading Factors affecting the performance of construction joint venture projects in Malaysia the author explains the high demand for international construction partnering projects and the expanding growth world wide at an increasing pace, especially in developing countries requires such partnerships (2016). JV have numerous reason why they fail alluring to its complexity and contractual agreement.

I don’t see myself utilize such a complex agreement requiring legal counsel every step of the way. Writing such an agreement outlining roles of leadership, accounting, obligation, well-defined goals and duties, seems overwhelming. Most project fail due to insufficient planning, funds, communication, resources, and greed.

Reference

OMRAN, A., & TAN WAI LENG. (2016). Factors Affecting the Performance of Construction Joint Venture Projects in Malaysia. Journal of Academic Research in Economics, 8(2), 269–286.

Sweet J, Schneier M.M, with Wentz B. (2016) Construction Law For Design Professional, Construction Managers, And Contractors published by Cengage Learning

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