Better Roads Digital Magazine
Issue link: https://read.dmtmag.com/i/85919
FinancialDistrict complex projects, they also appear on small and relatively straightforward proj- ects. Companies pursue joint ventures for a variety of reasons. Among them are to: - ping into another company's expertise. or equipment. By Brian Moore Building strategic partnerships that work – for both of you C - shirt. The response to these difficulties - - ships is one of the most successful trends for completing large, complex projects these days, there are many different forms relationships. The recession has caused many com- changing strategies to win and success- when a company leaves its comfort zone, which is why a highway/civil construc- tion firm must first consider how these into the company's current strategy. For instance, a strategy of just "get These economy-driven moves require 32 June 2012 Better Roads ontractors are, out of necessity, - order to return to their core competen- cies. However, this may also mean the company can no longer compete for cer- tain types or sizes of projects. Company management might consider forming some type of temporary partnership with joining with a partner has several differ- ent approaches -- which also means there are different levels of legal and financial - - implications, and failed relationships can Joint relationships Joint ventures are one of the least un- derstood, yet often the most effective approaches to forming temporary part- nerships for the duration of a project or selected projects. . Although joint ventures are consider- government set-aside contracts, experi- ence, capacity or other pre-qualification requirements. - pendent review of pricing, construction finding a joint-venture partner, it is im- portant to note that forming a joint ven- ture requires serious commitments and - In addition to financial and operational concerns, there are also organizational joint venture. Contractors should consult accountant to ensure that it has a clear understanding of the legal and financial considerations. While the financial arrangements of the Strategic ventures When a contractor's strategy calls for partnership are at the top of the list for most contractors considering joint ven- tures, it is important to focus on the idea that two (or more) companies are forming a new relationship. For instance, compa- nies often pursue joint-venture partners own. The other partner -- typically a larger, - to pursue a project. Whatever each party to recognize that dealing with joint-