![]() If done correctly, forming a joint venture relationship can allow the partners and managers to use employees ( populated or unpopulated) to leverage lucrative government contracts.Having a joint venture contractual agreement could potentially create new jobs and allow companies to show innovative capabilities to federal government markets.Two or more venture partners can combine their efforts and resources to reach a market that neither could accomplish on its own.An advantage of forming a joint venture is: that There are many merits of joint venture relationships with another experienced company. Common Joint Venture Advantages and Disadvantages Advantages of Joint Ventures, Federal Joint Venture Pros and Cons SBA regulations governing relationships between 8(a) companies, small businesses, and large businesses set the tone for how joint venture relationships must be. The legal relationships should be structured where the benefits of the joint venture relationship must go to the small business awardee. However, in the case of a small business that is the prime contractor, a joint venture agreement does not allow the large business or non-awardee, to control the contract. Joint Venture Definition (JV)?įederal procurement law allows two or more businesses to pool their efforts and resources together for bidding and performing a specific project. When making your decision to enter into JV agreement, make sure that you thoroughly understand the legal requirements for both proper execution, and to avoid affiliation (whether or not approved by the SBA). Small businesses especially have to be aware of the tricky rules and laws that impact joint venture relationships. However, there are some joint venture disadvantages that can cripple a company. ![]() ![]() ![]() In federal government contracting, there are many joint venture advantages and disadvantages (JV). Learn more about the joint venture advantages and disadvantages of JV arrangements in federal procurement. Although the SBA has new rules addressing joint venture agreements and affiliation, if you have a JV agreement that does not meet the regulatory requirements, your company can still be affiliated and lose the contract. ![]()
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