Joint Venture FAQs
Where is the joint venture physical office?
Typically, the joint-venture office is located at the project site.
How are the interests and shares of the joint venture divided?
Once the project requirements are known, the interests and shares are determined based on what’s “best for project” and are mutually agreed upon. Other key considerations include expertise, experience, relationships, available resources, appetite for risk and delivery method.
Which partner will typically have majority interest?
Driven by key project requirements to achieve “best for project” results, Walbridge prefers to work closely with its prospective partner to first develop the best approach to win and deliver the project. Joint-venture partners establish a mutually agreed upon majority interest.
What is typically expected of the joint-venture partner?
Each joint-venture partner uses its best efforts to ensure project deliverables meet client’s needs and attend all management committee meetings.
Will the joint-venture partner be required to provide any upfront capital?
The management committee establishes or determines the necessity for and the amount of capital contribution specific to the needs of the project. All required upfront capital requirements depend upon project requirements such as field mobilization, pre-construction services and the need to establish bank accounts.
Will a Walbridge joint venture have employees?
No, the joint-venture staff consists of each partner’s employees assigned to the project.
How is the joint venture managed and how are decisions made on its behalf?
A management committee is established and includes two principal representatives from each company. The management committee establishes procedures for the execution of the work consistent with the client’s needs and “best for project” outcome; it also reviews and supervises operations.
Which joint-venture partner will keep the accounts of record?
The management committee establishes accounting and financial procedures. Reporting is made available for examination and audit by each venture partner at all reasonable times.
How are subcontracts issued through the joint venture?
Subcontracts and other agreements, with respect to the services to be performed, are executed in the name of the joint venture through subcontracts and purchase orders bearing the Joint-Venture’s name. Invoicing and payments are made through accounts in the name of the joint venture in banks deemed appropriate by the management committee.
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