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Pinsent Masons | Plan for exit in case your construction joint venture unravels

Businesses must plan how to successfully exit from joint venture (JV) arrangements at the point they are negotiating the JV contract to address the risks they could face if those arrangements stop functioning as intended after the agreement is signed.

JVs offer two or more businesses scope to pool their expertise, money and technology to deliver major projects, sharing in the associated risks and rewards. However, it is estimated that around two thirds of JVs encounter problems within the first two years of being set up.

 

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