Many construction projects are getting larger and more complex. This is especially true for public-works projects. Joint ventures allow one or more contractors to make a combined effort to obtain and complete projects.
There can be many benefits to forming a joint venture to bid on a project. A joint venture can allow one or more contractors to spread the financial risk of a project. Joint ventures can also allow two contractors with different specialties to join forces to bid on a project that requires the experience of both contractors. Finally, a joint venture can increase the bonding capacity of contractors to allow them to bid on larger projects that may otherwise be out of reach.