Education on Joint Ventures in Construction Is a Must for Surety Professionals
Joint ventures have been an increasingly common way for two construction firms to pursue work in public and private construction markets, as firms look to share risks, to bolster resources and expertise, and to establish local market contacts to win contract awards. Partnering with another firm in the form of a joint venture may provide significant advantages for both firms, but also may pose significant challenges in terms of melding different cultures, management styles, and decision-making preferences, among other company attributes. Moreover, joint ventures between certain sized firms, such as between small and large firms, to receive procurement preference advantages to pursue federal contracts bring their own set of special rules and requirements that must be observed to avoid violations that could lead to civil and criminal liability. The legal developments surrounding construction joint ventures continue to evolve, necessitating that construction firms and their advisors stay abreast of both fundamental concepts as well as recent legal and regulatory changes, such as those promulgated by the U.S. Small Business Administration in relation to government-wide mentor-protégé arrangements.
Understanding the need of surety professionals for education on construction joint ventures, NASBP embarked this year on different pathways for learning about construction joint venture arrangements. Such instruction was offered through Virtual Seminars and through programs at the Annual Meeting and the Regional Meetings that provided attendees with continuing education credits. We know, however, that such programs only reach some but not all of those who may need or want to learn about construction joint ventures.
To address that need, NASBP tapped the expertise of the attorneys in the law firm of Peckar & Abramson P.C. to create a first-ever NASBP online course focused on joint ventures in construction. The course is divided into four chapters:
- The Basics of a Joint Venture
- Crafting the Joint Venture Agreement
- Joint Venture Agreements with Small Disadvantaged Businesses
- Bonding a Joint Venture
The content, along with test questions and answers for the online course, currently is being finalized, with an anticipated release date in spring 2017. NASBP will apply for continuing education accreditation of the course in all 50 states. Upon its release, “Joint Ventures in Construction: What You Need to Know” will constitute the fourth online course in the expanding library of NASBP online course offerings, with additional courses planned for development in the near future.
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