Question

In: Civil Engineering

Define and explain ”Integrated Joint-Venture” Plz don’t write for hand, because I don’t understand yours handstyle...

Define and explain ”Integrated Joint-Venture”

Plz don’t write for hand, because I don’t understand yours handstyle and thank you.

Solutions

Expert Solution

Primary characteristic is that it can represent a true partnership, in that the parties share profit and losses. The interest may be 50:50% or some other division and there may be two or more members. The members share the profit and losses in proportion to their interest in joint venture. The parties combine resources and personnel in an agreed upon manner. This type of joint venture is used in projects which are of immense size and task of splitting the work is very difficult. As a result planning and programming can become complicated and required highly structured and authoritative central management.

Typically used:
1. Strong, lengthy relationship between parties.
2. Non-linear, complex projects.

Joint ventures have been effectively used in the Texas market and elsewhere to enable contractors to respond to large project bids. By utilizing a joint venture format, contractors may be able to easily expand within a specific market without having to borrow a significant amount of funds or look for outside investors. By joining together, construction firms can have the opportunity to maximize their areas of expertise and profits while remaining flexible.


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