C. Typical Features and Phases of Unincorporated JVs
Unincorporated JVs have no joint assets, no affectio societatis and are not incorporated as a legal entity in any jurisdiction.…
The relationship between the members of an unincorporated JV is not static but evolves…
Pre-bidding phase: During the pre-bidding phase, the future JV members must find out what engineering and construction disciplines are required for the project, determine the nature and extent of each party’s expertise, experience and the man-
Bidding phase: Once the parties have analyzed the tender documents, technical specifications and drawings and have decided that they will be bidding together for the project, a first version of the joint venture agreement is usually conceived, in which the parties set out their respective contributions and responsibilities should the project be awarded to the JV. During this honeymoon period, the parties are normally still focused on being awarded the project together, as a result of which internal conflicts between JV members during this phase are fairly rare.…
Execution phase: After the project has been awarded to the JV and the parties have established the precise allocation of the scope of works, circumscribed their respective responsibilities and attendant liability in their JV agreement, the execution phase begins. This is a critical phase, during which the potential for disputes is high.…
Post-execution phase: After the project has been completed and the contract works have been taken over by the owner/employer, new disputes may arise that are typically triggered by defects or performance issues, which may lead to warranty claims…
The salient features of an unincorporated JV as well as the long lifespan of the…
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