Model Joint Venture (Consortium) Agreement Between Consultants

Individual interest cannot always prevail. To succeed as a joint venture, members must commit to developing joint efforts to deliver and create services and to reach agreement on changes to services and other day-to-day issues. If members do not, effective contractual mechanisms must be put in place to avoid disadvantages or disadvantages for the joint venture and its members. But in 2017, the International Federation of Consulting Engineers (FIDIC) has released a new Model Joint Venture Agreement. Engineers and other consultants therefore have a place to think about key issues that need to be negotiated and formalized before a joint venture is concluded. The joint venture agreement can be a useful guide for some common issues in non-incorporated joint ventures, particularly for consultants with limited experience in this structure. Ideally, it would be used for each joint venture, in conjunction with legal advice on its suitability. You can consider, for example. B, to list some important decisions that the steering committee must unanimously approve (the standard is majority – paragraph 7.3); Check which sub-advisors should be recruited by whom (and how costs are allocated); and the requirement for members to extend their professional liability insurance for (z.B.) 7 years after closing (Z.B 15.2). The joint venture cannot act with legal force (or with binding effect for all members of the joint venture) if no one represents it. The normal legal approach is for members to act together on behalf of the joint venture. The natural result is that unanimity is necessary.

This is not a truly viable approach. Users should check, on a case-by-case basis, the exact nature of this agreement in light of current legislation, provided that the lowest level of the alliance is considered. This Joint Venture Agreement Model does not create a legal entity, but is an agreement between the parties to participate in a particular project. Don`t forget to consult with your professional insurance broker before starting a joint venture, as some policies offer limited or no coverage for joint ventures and others require prior notification of each joint venture.

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