The CIDB as well as other government entities recognize that a number of companies can join to form a joint venture for a number of reasons.
Some of the reasons cited include but are not limited to the following
- In instances whereby the advertised tender stipulates that a joint venture must be formed.
- In situations whereby a joint venture shall lead to a higher CIDB rating.
- Also in circumstances whereby the contract is too large or too complex for one company and that the various specializations and resources will be needed.
- And lastly but not least, in scenarios whereby the resources of one contractor are insufficient and as a result, they shall be better off if they pool financial & skills resources together.
However, in all incidences, a sound written joint venture agreement must be in place at all times and this is what forms the basis of this article.