The Joint Undertaking Agreement (JSA) template has been specifically designed for architects and design professionals who wish to work with another professional entity for a limited period of time and for a given project. Danesh-Mand says the most effective way to reduce the likelihood of disagreements and litigation is not through complex, legislated agreements, but to understand, assess, allocate and communicate risks clearly from the outset – in an appropriate and reasonable manner. „From our point of view, joint ventures are a good methodology to bring the right know-how to a project; JCY has regularly entered into association agreements,“ he explains. „We had already worked with Cox and Billiards Leece Partnership, and we knew and trusted these companies, and they brought different strengths to the team, which was the key to the success of the project.“ While a carefully crafted joint venture agreement may create a framework for the allocation of responsibility among joint ventures, it cannot isolate each of the joint ventures from all the risks that the others may pose; Nothing in a joint venture agreement limits the separate liability of joint ventures to a customer or third party. The perception is that the joint venture is really a single point of responsibility for a project, and this perception is generally reasonable and recognized in any litigation against the joint venture. `C801™-1993 will be used by two or more parties to fulfil their mutual rights and obligations when setting up a joint venture. Once established, the joint venture intends to withdraw an agreement with the owner on the provision of professional services. The parties can be all architects, all engineers, a combination of architects and engineers or another combination of professionals. The document offers the choice between two methods of the Joint Undertaking.
The „division of compensation“ method is assumed that the services provided and the remuneration received will be distributed among the parties in the shares agreed at the beginning of the project. The profitability of each party then depends on the individual performance of the tasks previously assigned and is not directly linked to that of the other parties. The Division of Profit and Loss method is based on each party performing work and the joint venture charges at acquisition cost, plus a nominal amount for overheads. The final profit or loss of the Joint Undertaking shall be distributed between the Parties or between the Parties after the completion of the project, on the basis of their respective interests. (AIA.org) In an increasingly globalised architecture and construction market, the number of large-scale projects carried out as joint ventures and under joint venture agreements is increasing, but with increasing size and complexity, additional risks and new challenges are emerging. Is your company ready for the competition? A joint venture is essentially a partnership, but only for a specific and generally limited purpose. As a general rule, partnership and joint venture agreements share responsibility and compensation between the parties or between them.