In some countries and cultures, the terms “joint venture” or “JV” and “consortium” can be used as synonyms. For the purposes of this article, we observe the usual differentiation between them, as in recent decades in construction, infrastructure, oil and gas, electricity and renewable energy companies. In a consortium, each party has the full power to decide its respective price, provisions and margin. When the parties add the prices, the parties often realize that the result is not competitive. This is particularly the case when they perceive risks within the scope of their partner and decide to create provisions for this purpose. Then they start jostling each other to lower the price and increase the probability of the price. But they only have the soft power to influence other partners. A consortium and a joint venture are opportunities for two or more parties to come together and participate in a tender. And if they succeed, they will execute the contract together. Thanks to “shared and multiple responsibility,” the employer is no less well off than that of a single contractor. In fact, common -several means that the employer can go either or both to fulfill the contract or get damages. The employer is therefore in a better position and has the opportunity to rely on two or more companies to resolve a breach of contract. Neither a consortium nor a joint venture have a legal definition in UK law.

The second term is generally used to describe different types of agreements in which two or more parties cooperate in the execution of commercial activities. This is reflected in the common distribution of profits. B, cash participation, assets, knowledge or skills. Since there is no legislation that regulates the consortium or joint venture in detail, the relationship between the parties to this type of agreement – when they elect a joint venture in the form of a joint venture or a particular partnership – is governed by the common law or corporate law. A consortium contract governed by general contract law, similar to an ordinary social contract, does not create its own unit. [6] Thanks for your comment, Jeremie Averous. It even assumes that the joint venture was included. We are talking about the two most diverse decisions.