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Warning over rising joint venture disputes

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  1. A couple of projects that I have been involved with in the past which were run using JV’s actually ran pretty smoothly.
    The main reason was that the JV’s formed were set up as bottlenecks between the partner companies and the project site. This enabled the projects to proceed in normal fashion without disputes between the companies as the JV management had to reach decisions that were mutually agreed and then carried out by the project teams.
    What also greatly helped the process was that often there were contracted staff involved whose loyalty was to the project – and not to an individual partner of the JV, so the project benefited.

  2. In my view most successful JV’s need to have equal share in the project and develop a common objective and project brand which all staff fall under. Significant team building is needed at the start of the project at both Team and sponsor level with clear rules established and agreed in writing as to how JV disputes are resolved to the mutual benefit of the project. The project will succeed or fail based on the behaviors of the sponsors team and senior JV project managers. A lot can be said for execution of major projects in a true Alliance with the end stake holders.

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