Joint Ventures
Useful for: Business
In Brief
Joint Ventures are agreements between 2 or more businesses to come together to carry out an undertaking and share in the profits from it.
When businesses combine their resources, knowledge or skills and work together they can gain benefits such as:
- they may be a more attractive tenderer for government contracts, especially on projects that require multiple areas of expertise or a range of licences/permits that one business can not satisfy on its own;
- businesses involved in the joint venture may develop and grow more quickly, or in a way that they might not be able to on their own;
- eases the burden on a company of financing upfront resourcing issues (for example, the business may not have the existing labour resources to carry out a project and does not want to expend time and money on those resources before a tender is won).
- Hedges against damage from market movements during the tender period (for example changes in the available labour market, changes in the supply chain).
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