It’s been quite some time now that CBD5 is successfully providing all sorts of property development services in Sydney, Melbourne and Canberra. This joint venture has been successfully maintaining the projects for quite some time now.
What is Joint Venture
The Encyclopedic Australian Legal Dictionary defines a joint venture as “an association of persons for particular commercial endeavors (for example, the development of land or the exploitation of mineral resources) with a view to mutual profit”.
As per the High court, Joint Venter connects “an association of persons for the purposes of a particular trading, commercial, mining or financial undertaking or endeavor with a view to mutual profit, with each participant usually (but not necessarily) contributing money, property or skill.”
The benefits of Joint Ventures
There are certain aspects related to joint ventures that help faster growth, increased productivity and greater growth. All these factors are working really well for CBD5. Alongside, there are a few others advantages of joint ventures and those are as follows:
- Access to new markets and distribution networks
- Increased capacity
- Sharing of risks and costs with a partner
- Access to greater resources, including specialized staff, technology and finance
It can be highly beneficial if structured correctly
Businesses of any size can use joint ventures to strengthen long term relationships or to collaborate on short term projects. Joint ventures are used in a number of areas by corporations. These include mining syndicates, research and development agreements, entertainment agreements, property developments, share farming agreements and publishing agreements.
Important things to consider for Joint Venture arrangements
- Background check:When you commence a joint venture with someone, you are tying your reputation to theirs. The wrong joint venture partner can in a very short time undo years of carefully constructed goodwill.
- Decide on the crucial roles at the beginning: Objectives and roles should be agreed and documented by both parties before any work starts on the actual joint venture itself. Moreover, in order to decide the roles it is important to justify whether it’s a start up concern or any commercial collaboration.
- Formal agreement: The formalization of the agreement is very necessary. Deal with as many aspects of the relationship as possible in the written agreement to help prevent any misunderstanding once the joint venture is up and running.
- Performance indicator: It is of paramount importance to establish a few set performance indicators in order to have more clarity in the process. Establish clear performance indicators for each party to the joint venture. An imbalance in levels of expertise, investment or assets brought into the joint venture by the different partners can lead to conflict even though those issues were known from the beginning.
- Maintain up-to-date financial records: Maintain the financial records of the joint venture and auditing in accordance with the relevant legislation, government, corporate guidelines and general good business practice.
These are only a few concerns that you need to be really careful about while setting up a joint venture. It is also important to keep in mind that like most other business ventures, the success and failure of a joint venture depends solely on the performance and carefulness maintained throughout. The points highlighted in this brief commentary are only a few of the important details in forming a well-structured joint venture. Each potential joint venture will require careful analysis and a determination of issues critical to the particular transaction.
CBD 5 Employees and sub-contractors follow strict safety standards in accordance with our Occupational Health and Safety and Environmental Management Procedures. We use a range of Elevated Work platforms and access equipments. Our Personnel are fully licensed for all the tasks we undertake. All our employees are site safety induced and have induction cards.
Please contact us if you’d like to request additional information, clarification, or and for an estimate Click here regarding this service or any other services CBD 5 offers.