Strategy

• Why is this project important to my firm?

• Is the project of strategic importance?

• Could the project be lucrative?

• Could something about this project give my firm a competitive advantage?

• What assets does my potential joint venture partner bring to the partnership?

    Alternatives

• What are my alternatives to forming a joint venture?

• Can I have my subcontractors bond separately?

    Control

• Which joint venture partner will have control of the project?

• Which partner will provide the project manager and superintendent?

• Who will fulfill the administrative and accounting functions for the project?

    Risk Research

• What do I know about my joint venture partner?

• Are there any problems I could inherit by entering into a legal contract with another entity?

• What is the financial strength of that entity?

• Do I need to do a background check on the other partner’s key personnel?

• What could happen within my partner’s operation that could be detrimental to the joint venture?

• How, if at all, do I react to these factors?

     Professional Advice

• Have I obtained appropriate legal and financial advice?

• Have I reviewed a pre-bid agreement that is very similar to the actual joint venture agreement?

    Final Considerations

Am I confident this joint venture will not damage my firm’s:

• Integrity?

• Workers’ compensation experience modifier?

• Bonding capacity?

• Reputation as a builder?

For more information about Ericksen, Krentel & LaPorte's services for the construction industry, call Eric Powers at 504/486-7275 or e-mail: epowers@ericksenkrentel.com

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Ericksen, Krentel & LaPorte, L.L.P.   4227 Canal Street, New Orleans, LA 70119

Tel:  (504) 486-7275   Fax: (504) 482-2516