The joint enterprise agreements concluded by this agreement must be developed by a professional who understands both the legal and technical aspects of SANS 1914. In this type of joint venture agreement, financial, skill and other capital resources are drawn at the same time as speculation in a profit share. While, in a subcontracting agreement, the subcontractor does not participate in the losses, but in a joint venture agreement, all parties to the agreement could participate adequately in the losses and commitments that may occur at the end of the project. The CIDB itself also provides a list of templates that can be used to customize your joint venture agreements. However, in all cases, there must be a strong written joint venture agreement at all times, and that is the basis of this article. This is the second most common type of joint enterprise agreement. This type of joint venture agreement can be valuable and impressive for the employer if it is presented in the tendering phase. The agreement must state in its entirety the financial contributions of each member, the qualities of leadership and the work done by each member. The joint enterprise agreements that are required in the context of public tenders must be concluded within the framework of the rules contained in SANS1914. It also bears similarities to a subcontract, but the main difference is that, in a subcontracting agreement, the risks and benefits of project success are borne by the principal contractor and, in most cases, the subcontractor generally contributes 100% of its capital resources, in the hope that it will be paid at the end of a successful job.
The conditions in joint venture agreements must be fair and be developed on the model of the South African Federation of Construction and Engineering Contracts or international construction activity. However, I think that this objective can also be achieved by a subcontracting agreement, so I do not see the point in entering into such an agreement. Most contractors enter into this type of agreement with the aim of attracting specialists or facilities better equipped to deal with a specific element of the contract.