NASBP is pleased to announce that it will soon release continuing education course materials for joint ventures in construction, which address essential issues in joint ventures and include real-world experiences and lessons learned. Mike Zisa, Esq. and other members of the Washington, DC office of the law firm of Peckar & Abramson developed the content of the course, which will discuss the following topics:
- Different forms of joint ventures.
- Advantages and disadvantages associated with each form.
- Liability between the partners to the joint venture.
- Distinctions between a joint venture agreement and a teaming agreement.
- Essential terms of the joint venture agreement—from the basics, such as members, purpose, ownership, and duration, to more complex issues and terms involving capitalization, management, profit sharing, default, indemnification, and dispute resolution.
The course materials also include a chapter dedicated to joint venture opportunities with federal government programs, such as the U.S. Small Business Administration’s 8(a) program and other small and disadvantaged businesses programs that “set aside” contracts for qualified businesses. In particular, the chapter explains the intricacies of the mentor-protégé joint venture program, which allows a qualified small business to joint venture with a large business while still taking advantage of the small business set asides. The joint venture relationship in this area raises a myriad of compliance issues that contractors, bond producers, and sureties must understand in order to qualify for the program but also stay out of trouble for failing to comply with the program’s requirements. The materials discuss in depth the latest changes to the requirements of these programs.
The final chapter of the materials addresses issues and considerations for bond producers and sureties when bonding a joint venture. Specifically, the chapter details the materials to examine during the underwriting process, which includes review of the capacity, capital, and character of all partners in the joint venture, the terms of the joint venture agreement, and an “angel deal” and why it raises red flags in the underwriting process. The materials also discuss the typical indemnity requirements for bonding a joint venture and key practical issues that bond producers must understand when assisting clients to obtain bonds for a joint venture.
In addition to being a useful resource for bond producers and other surety professionals, at the conclusion of each chapter are a series of questions, that allows readers to test their knowledge of key concepts and issues.
For more information about other NASBP online courses, click here or contact Assistant Director of Professional Development Danielle Hard at firstname.lastname@example.org.