Joint Venture Agreement - 298

ConsensusDocs 298 is a comprehensive joint venture (JV) agreement tailored specifically for the construction industry. It enables two or more parties to legally form a joint venture for a specific project, defining their roles, rights, and obligations under a single, unified contract. Developed by industry experts, this agreement is built to address the complex nature of JV partnerships while remaining flexible to adapt to different legal jurisdictions and project needs.

The document establishes a solid legal framework by detailing the general conditions that govern the joint venture. These conditions include the division of responsibilities, the execution of work, and the management structure of the JV. It also addresses critical construction contract issues, including financing arrangements, allocation of profit and loss, performance standards, insurance, bonding, and compliance with applicable laws and regulations.

A key feature of ConsensusDocs 298 is its subcontracting option, allowing the joint venture to issue specific scopes of work to one or more of its members. This action requires the approval of the Executive Committee, adding a layer of governance and transparency to internal transactions. This makes the agreement especially practical for integrated teams where members may perform dual roles as both JV partners and service providers.

Highlights of ConsensusDocs 298:

• Legally binding JV formation agreement for construction projects
• Defines roles, responsibilities, and management structure
• Covers key construction contract provisions such as financing, payments, dispute resolution, and default remedies
• Allows customization for state-specific legal requirements
• Includes subcontracting provision to assign work within the JV upon committee approval
• Supports collaborative project delivery and risk-sharing

ConsensusDocs 298 provides a clear, adaptable structure for contractors, designers, and other stakeholders who wish to form a joint venture for delivering construction projects efficiently and in full compliance with applicable laws.