Joint Venture / Collaboration

A joint venture is composed of two or more businesses combining their resources to build one or more projects. Construction companies may choose to extend and expand their capital, bonding capacity, or expertise by joining together with other competent contractors to perform work that is challenging either in terms of size or type. Other construction companies have restricted access to international or domestic markets. By forming joint ventures, construction companies can often overcome these market limitations or restrictions. Although these forms of business have both advantages and disadvantages, they are often necessary for the construction company's survival and growth in a highly competitive industry.

​We undertake a joint venture of large sized project with the person/ company who already own the land meant for residential or commercial purpose in Delhi or NCR and the approval of building plans and other necessary permissions are already obtained from the concerned authority.

Further the company / individual should be able to share the required details as mentioned below:

 

• What are the assets, capital, services, and other resources contributed by each party?

• What was the value and basis of the property contributed?

• Did a partner contribute appreciated property to the venture?

• Was the contributed property encumbered?

• What are the profit, loss and capital sharing ratios?

• Have there been changes in the ownership structure?

• Have there been distributions or partial liquidations from the joint venture?

• What type of property was distributed and to whom?

• How has the construction company been compensated (cash, increase in capital interest, etc.) for its construction work?

• How does the construction company allocate its overhead or indirect expenses to joint venture projects?

• Are there related transactions (compensation payments, leases, loans, etc.) between the joint venture and the members of the joint venture?

• What method of accounting does the joint venture use?

• What effects do long-term contracts have on the allocation of income to incoming/outgoing partners?

• Has construction period interest been properly capitalized ?