When two or more companies wish to combine for a project or group of projects, a Joint Venture provides the flexibility to accomplish these goals.
Joint Ventures are in essence, a partnership between two construction companies, and are formed to leverage the particular expertise, capacity, resources and talents of the various partners--as well as to share the risk, combine financial resources, and obtain financing or bonding. Profits and losses can also be allocated between the partners in ways that reflect the partners' relative economic interest in the venture.
Technical Assurance supports joint ventures as it allows contractors to take advantage of certain opportunities that might not be available on a stand alone basis. There are however many complex tax and business issues that should be addressed in the formative stages.