Joint Venture Agreement - 499

ConsensusDocs 499 is the construction industry’s first and only standardized joint venture agreement created specifically for design-build project delivery. This powerful and flexible contract enables two or more parties—such as design firms, contractors, and construction managers—to form a joint venture (JV) for the purpose of submitting a unified bid or proposal for a design-build project.

In design-build projects, the project Owner contracts with a single entity responsible for both the design and construction phases. For many complex or large-scale projects, forming a joint venture allows multiple entities to combine resources, share risk, and enhance competitive positioning. ConsensusDocs 499 provides a legally sound, comprehensive framework to do just that.

This agreement goes beyond just outlining the bid process—it fully defines how the joint venture will be managed and operated. Key contract provisions include:

• JV Governance and Management Structure
• Scope of Work and Execution Responsibilities
• Profit and Loss Allocation
• Financing of the JV
• Insurance and Bonding Requirements
• Performance and Payment Terms
• Events of Default and Remedies
• Dispute Resolution and Risk Mitigation

The ConsensusDocs 499 also includes flexible terms that can be customized based on state law requirements and the specific needs of the joint venture participants. Whether you’re forming a JV between a general contractor and a design firm or between two large construction companies, this agreement ensures clarity, fairness, and legal protection throughout the partnership.

By using ConsensusDocs 499, firms can confidently enter joint ventures with a shared understanding of responsibilities, minimizing risk and fostering collaboration in pursuit of design-build opportunities.