Construction Today - September 2016 - 48

Civil
Civil | COMPANY NAME

By Zach Webber

THE Benefits
OF JOINT VENTURES

I

n a construction environment mired
with increasing competition and risk,
some firms are using a tool that can
both increase margins and mitigate
risk. Joint ventures allow firms to "partner"
to bid on and complete larger jobs for which
a single firm may not have the necessary experience or risk profile. This pooling of assets
and resources can create positive synergies
by allowing smaller firms to compete in a
larger competitive landscape.
For a joint venture arrangement to be
successful, each firm under the arrangement
must realize that trust and communication
are key issues, and that playing a "bully" role
in the negotiation process could have large
negative implications later in the process.
Positive synergy cannot be obtained if one
of the firms feels like it is not getting the
benefits it needs from the venture.

48

CONSTRUCTION-TODAY.COM SEPTEMBER 2016

Investing in a joint venture with another contractor can be a very
attractive method to take on larger, more profitable jobs while effectively managing risk. A joint venture is organized as a separate entity
and can either be created to bid on a singular project or to function
with an indefinite life. For the contractor, investing in a joint venture
has certain advantages and disadvantages.
The advantages include:
- Financing: Joint ventures allow multiple companies to pool
their resources to assist with funding a larger project or obtaining
more capital from a lender.
- Risk mitigation: As the number of investors in the joint venture
increases, risk is spread evenly across the participants.
The disadvantages include:
- Loss of control: The contractor will have to share decision making responsibilities and financial information with its partners.
- Increased record-keeping responsibilities: The contractor
is required to keep separate records for the joint venture. The
firm that bears this responsibility will have to devote additional
resources to accounting and record keeping.


http://www.CONSTRUCTION-TODAY.COM

Table of Contents for the Digital Edition of Construction Today - September 2016

Contents
Construction Today - September 2016 - Cover1
Construction Today - September 2016 - Cover2
Construction Today - September 2016 - 1
Construction Today - September 2016 - Contents
Construction Today - September 2016 - 3
Construction Today - September 2016 - 4
Construction Today - September 2016 - 5
Construction Today - September 2016 - 6
Construction Today - September 2016 - 7
Construction Today - September 2016 - 8
Construction Today - September 2016 - 9
Construction Today - September 2016 - 10
Construction Today - September 2016 - 11
Construction Today - September 2016 - 12
Construction Today - September 2016 - 13
Construction Today - September 2016 - 14
Construction Today - September 2016 - 15
Construction Today - September 2016 - 16
Construction Today - September 2016 - 17
Construction Today - September 2016 - 18
Construction Today - September 2016 - 19
Construction Today - September 2016 - 20
Construction Today - September 2016 - 21
Construction Today - September 2016 - 22
Construction Today - September 2016 - 23
Construction Today - September 2016 - 24
Construction Today - September 2016 - 25
Construction Today - September 2016 - 26
Construction Today - September 2016 - 27
Construction Today - September 2016 - 28
Construction Today - September 2016 - 29
Construction Today - September 2016 - 30
Construction Today - September 2016 - 31
Construction Today - September 2016 - 32
Construction Today - September 2016 - 33
Construction Today - September 2016 - 34
Construction Today - September 2016 - 35
Construction Today - September 2016 - 36
Construction Today - September 2016 - 37
Construction Today - September 2016 - 38
Construction Today - September 2016 - 39
Construction Today - September 2016 - 40
Construction Today - September 2016 - 41
Construction Today - September 2016 - 42
Construction Today - September 2016 - 43
Construction Today - September 2016 - 44
Construction Today - September 2016 - 45
Construction Today - September 2016 - 46
Construction Today - September 2016 - 47
Construction Today - September 2016 - 48
Construction Today - September 2016 - 49
Construction Today - September 2016 - 50
Construction Today - September 2016 - 51
Construction Today - September 2016 - 52
Construction Today - September 2016 - 53
Construction Today - September 2016 - 54
Construction Today - September 2016 - 55
Construction Today - September 2016 - 56
Construction Today - September 2016 - 57
Construction Today - September 2016 - 58
Construction Today - September 2016 - 59
Construction Today - September 2016 - 60
Construction Today - September 2016 - 61
Construction Today - September 2016 - 62
Construction Today - September 2016 - 63
Construction Today - September 2016 - 64
Construction Today - September 2016 - 65
Construction Today - September 2016 - 66
Construction Today - September 2016 - 67
Construction Today - September 2016 - 68
Construction Today - September 2016 - 69
Construction Today - September 2016 - 70
Construction Today - September 2016 - 71
Construction Today - September 2016 - 72
Construction Today - September 2016 - 73
Construction Today - September 2016 - 74
Construction Today - September 2016 - 75
Construction Today - September 2016 - 76
Construction Today - September 2016 - 77
Construction Today - September 2016 - 78
Construction Today - September 2016 - 79
Construction Today - September 2016 - 80
Construction Today - September 2016 - 81
Construction Today - September 2016 - 82
Construction Today - September 2016 - 83
Construction Today - September 2016 - 84
Construction Today - September 2016 - 85
Construction Today - September 2016 - 86
Construction Today - September 2016 - 87
Construction Today - September 2016 - 88
Construction Today - September 2016 - 89
Construction Today - September 2016 - 90
Construction Today - September 2016 - 91
Construction Today - September 2016 - 92
Construction Today - September 2016 - 93
Construction Today - September 2016 - 94
Construction Today - September 2016 - 95
Construction Today - September 2016 - 96
Construction Today - September 2016 - 97
Construction Today - September 2016 - 98
Construction Today - September 2016 - 99
Construction Today - September 2016 - 100
Construction Today - September 2016 - 101
Construction Today - September 2016 - 102
Construction Today - September 2016 - 103
Construction Today - September 2016 - 104
Construction Today - September 2016 - 105
Construction Today - September 2016 - 106
Construction Today - September 2016 - 107
Construction Today - September 2016 - 108
Construction Today - September 2016 - 109
Construction Today - September 2016 - 110
Construction Today - September 2016 - 111
Construction Today - September 2016 - 112
Construction Today - September 2016 - 113
Construction Today - September 2016 - 114
Construction Today - September 2016 - 115
Construction Today - September 2016 - 116
Construction Today - September 2016 - 117
Construction Today - September 2016 - 118
Construction Today - September 2016 - 119
Construction Today - September 2016 - 120
Construction Today - September 2016 - 121
Construction Today - September 2016 - 122
Construction Today - September 2016 - 123
Construction Today - September 2016 - 124
Construction Today - September 2016 - 125
Construction Today - September 2016 - 126
Construction Today - September 2016 - 127
Construction Today - September 2016 - 128
Construction Today - September 2016 - Cover3
Construction Today - September 2016 - Cover4
http://digital.construction-today.com/nxtbooks/knighthouse/ct_vol17issue5b
http://digital.construction-today.com/nxtbooks/knighthouse/ct_vol17issue5a
http://digital.construction-today.com/nxtbooks/knighthouse/ct_vol17issue4
http://digital.construction-today.com/nxtbooks/knighthouse/ct_vol17issue4a
http://digital.construction-today.com/nxtbooks/knighthouse/ct_vol17issue3
http://digital.construction-today.com/nxtbooks/knighthouse/ct_vol17issue3a
http://digital.construction-today.com/nxtbooks/knighthouse/ct_vol17issue2
http://digital.construction-today.com/nxtbooks/knighthouse/ct_vol17issue2a
http://digital.construction-today.com/nxtbooks/knighthouse/ct_vol17issue1
http://digital.construction-today.com/nxtbooks/knighthouse/ct_vol17issue1a
http://digital.construction-today.com/nxtbooks/knighthouse/ct_vol16issue6
http://digital.construction-today.com/nxtbooks/knighthouse/ct_vol16issue5
http://digital.construction-today.com/nxtbooks/knighthouse/ct_vol16issue4
http://digital.construction-today.com/nxtbooks/knighthouse/ct_vol16issue3
http://digital.construction-today.com/nxtbooks/knighthouse/ct_vol16issue2
http://digital.construction-today.com/nxtbooks/knighthouse/ct_vol16issue1
http://digital.construction-today.com/nxtbooks/knighthouse/ct_201712
http://digital.construction-today.com/nxtbooks/knighthouse/ct_201711
http://digital.construction-today.com/nxtbooks/knighthouse/ct_20170910
http://digital.construction-today.com/nxtbooks/knighthouse/ct_20170708
http://digital.construction-today.com/nxtbooks/knighthouse/ct_201706
http://digital.construction-today.com/nxtbooks/knighthouse/ct_201705
http://digital.construction-today.com/nxtbooks/knighthouse/ct_20170304
http://digital.construction-today.com/nxtbooks/knighthouse/ct_201702
http://digital.construction-today.com/nxtbooks/knighthouse/ct_201701
http://digital.construction-today.com/nxtbooks/knighthouse/ct_20161112
http://digital.construction-today.com/nxtbooks/knighthouse/ct_201610vol2
http://digital.construction-today.com/nxtbooks/knighthouse/ct_201610
http://digital.construction-today.com/nxtbooks/knighthouse/ct_201609
http://digital.construction-today.com/nxtbooks/knighthouse/ct_201608
http://digital.construction-today.com/nxtbooks/knighthouse/ct_201607
http://digital.construction-today.com/nxtbooks/knighthouse/ct_201606
http://digital.construction-today.com/nxtbooks/knighthouse/ct_201605
http://digital.construction-today.com/nxtbooks/phoenix/ct_201604
http://digital.construction-today.com/nxtbooks/phoenix/ct_20160304
http://digital.construction-today.com/nxtbooks/phoenix/ct_20160102
http://digital.construction-today.com/nxtbooks/phoenix/ct_20151112
http://digital.construction-today.com/nxtbooks/phoenix/ct_20150910
http://digital.construction-today.com/nxtbooks/phoenix/ct_20150708
http://digital.construction-today.com/nxtbooks/phoenix/ct_20150506
http://digital.construction-today.com/nxtbooks/phoenix/ct_20150304
http://digital.construction-today.com/nxtbooks/phoenix/ct_20150102
http://digital.construction-today.com/nxtbooks/phoenix/ct_20141112
http://digital.construction-today.com/nxtbooks/phoenix/ct_20140910
http://digital.construction-today.com/nxtbooks/phoenix/ct_20140708
http://digital.construction-today.com/nxtbooks/phoenix/ct_20140506
http://digital.construction-today.com/nxtbooks/phoenix/ct_20140304
http://digital.construction-today.com/nxtbooks/phoenix/ct_20140102
http://digital.construction-today.com/nxtbooks/phoenix/ct_20131112
http://digital.construction-today.com/nxtbooks/phoenix/ct_20130910
http://digital.construction-today.com/nxtbooks/phoenix/ct_20130708
http://digital.construction-today.com/nxtbooks/phoenix/ct_20130506
http://digital.construction-today.com/nxtbooks/phoenix/ct_20130304
http://digital.construction-today.com/nxtbooks/phoenix/ct_20130102
http://digital.construction-today.com/nxtbooks/phoenix/ct_20121112
http://digital.construction-today.com/nxtbooks/phoenix/ct_20120910
http://digital.construction-today.com/nxtbooks/phoenix/ct_201208
http://digital.construction-today.com/nxtbooks/phoenix/ct_201207
http://digital.construction-today.com/nxtbooks/phoenix/ct_201206
http://digital.construction-today.com/nxtbooks/phoenix/ct_201205
http://digital.construction-today.com/nxtbooks/phoenix/ct_201204
http://digital.construction-today.com/nxtbooks/phoenix/ct_201203
http://digital.construction-today.com/nxtbooks/phoenix/ct_201202
http://digital.construction-today.com/nxtbooks/phoenix/ct_201201
http://digital.construction-today.com/nxtbooks/phoenix/ct_201112
http://digital.construction-today.com/nxtbooks/phoenix/ct_20111011
http://digital.construction-today.com/nxtbooks/phoenix/ct_201109
http://digital.construction-today.com/nxtbooks/phoenix/ct_201108
http://digital.construction-today.com/nxtbooks/businessmedia/ct_201107
http://digital.construction-today.com/nxtbooks/businessmedia/ct_201106
http://digital.construction-today.com/nxtbooks/businessmedia/ct_201105
http://digital.construction-today.com/nxtbooks/businessmedia/ct_201104
http://digital.construction-today.com/nxtbooks/businessmedia/ct_201103
http://digital.construction-today.com/nxtbooks/businessmedia/ct_201102
http://digital.construction-today.com/nxtbooks/businessmedia/ct_201101
http://digital.construction-today.com/nxtbooks/businessmedia/ct_201012
http://digital.construction-today.com/nxtbooks/businessmedia/ct_201011
http://digital.construction-today.com/nxtbooks/businessmedia/ct_201010
http://digital.construction-today.com/nxtbooks/businessmedia/ct_201009
http://digital.construction-today.com/nxtbooks/businessmedia/ct_201008
http://digital.construction-today.com/nxtbooks/businessmedia/ct_201007
http://digital.construction-today.com/nxtbooks/businessmedia/ct_201006
http://digital.construction-today.com/nxtbooks/businessmedia/ct_201005
http://digital.construction-today.com/nxtbooks/businessmedia/ct_201004
http://digital.construction-today.com/nxtbooks/businessmedia/ct_201003
http://digital.construction-today.com/nxtbooks/businessmedia/ct_201002
http://digital.construction-today.com/nxtbooks/businessmedia/ct_201001
http://digital.construction-today.com/nxtbooks/schofield/ct_200912
http://digital.construction-today.com/nxtbooks/schofield/ct_200911
http://digital.construction-today.com/nxtbooks/schofield/ct_200910
http://www.nxtbook.com/nxtbooks/schofield/ct_200909
http://www.nxtbookMEDIA.com