Construction Executive published an article by Assurance Partner Robert Mercado about how to successfully structure a joint venture between construction contractors.
By Robert Mercado, Partner, Assurance Services
Joint ventures involve the union of two or more entities in the interest of completing projects as one entity. The partners create an operating agreement that outlines the joint venture structure and includes, but is not limited to, roles and responsibilities, rates and overhead cost, funding of losses, and early cash distributions and closeout. If not outlined carefully, any one of these items could detract from the joint venture’s success.