D. Requirements of Unincorporated Joint Venture Agreements
The agreement between unincorporated JVs lays out the framework within which contract…
Delimitation of the scope of the parties’ respective works: To start with,…
Authority to represent and bind the JV externally: JV members can avoid…
Division of tasks and responsibilities within the JV: In the interest of…
Payment procedures: The receipt and processing of payments, as well as access to the JV’s bank accounts and administration, must be regulated in order to avoid a situation in which one JV member behaves irrationally in respect of payments and accounting. The parties ought to provide clearly which payments will be made to and from the joint account and which
Guarantees and warranties for defects: As the JV as a whole is liable towards…
Funding: The agreement must articulate how the project is funded and provide…
Insurance: Insurance policies, whether project-specific or annual, ought…
Insolvency: The agreement must also provide for a procedure in case of impecuniosity…
Termination: The agreement should provide for amicable liquidation of the JV in case the employer were to terminate the main contract during the execution of the project, or in case a JV member were to pull out of the JV before the completion
Duration of the JV agreement: Since JV members are more likely to adopt…
Dispute resolution clause: A stalemate between the JV members in case of…
While great care and attention are uniformly devoted to the early resolution of external…
The typical issues that may arise if a construction project is undertaken by an unincorporated…
Each of these issues may involve a wide range of factual, contractual and legal issues…
There is no reason why dispute resolution techniques that are commonly used for external…
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