Joint Venture Agreement (Construction)

Quebec English Civil law Unannotated

Joint Venture Agreement (Construction)

Some construction projects require numerous intervenors and resources to be realized. This is why different forms of collaborative arrangements are used in the construction industry. One such example is a joint venture, which involves a temporary association between different businesses to realize a certain project. It is necessary to clearly set out the terms and conditions of this type of collaboration, so that it is not perceived as a partnership as defined in the Civil Code of Quebec.

A joint venture agreement is the legal tool by which two or more parties, the “co-venturers”, unite their efforts to realize a commercial operation during a fixed period of time. In most cases, the joint venture is the solution when none of parties could attain its own objectives without the help of the other business. Each party is required to contribute to the joint venture, whether by way of money, goods or services. This constitutes the essential obligation of any joint venture agreement. Our document thus aims to unify the dealings between the client and the co-venturers and to plan the execution of the planned construction work.

Our template sets out the juridical, organisational and operational framework for a joint venture specially designed for the purposes of constructing a building. It is imperative that the obligations and responsibilities of the co-venturers are made in writing; and using our template will ensure that this is properly done.

Joint Venture Agreement (Construction)

This template is designed to govern a temporary collaboration between various actors in the construction industry for the purposes of submitting a joint tender to a client and, if selected, to jointly perform the work.

This template will allow you to establish the administrative and financial foundation for all stages of the joint venture, such as taking part in the tendering process, entering into the contract with the client and performing the work in the best possible conditions.

Please note that a joint venture is different from a undeclared partnership (see template A05200: Undeclared Partnership Agreement) because it does not imply a partnership relationship between the parties. As such, it is very important that both the joint venture agreement and the parties' conduct clearly indicates that it is not a partnership as defined in the Civil Code of Quebec. The slightest ambiguity to that effect could lead the courts to find that it is an undeclared partnership.

Joint Venture Agreement (Construction)

0.00 INTERPRETATION
0.01 Definitions
0.01.01 Agreement
0.01.02 Best Efforts
0.01.03 Breach
0.01.04 Change in Control
0.01.05 Client
0.01.06 Committee Representative
0.01.07 Common Expenses
0.01.08 Common Tasks
0.01.09 Confidential Information
0.01.10 Construction Contract
0.01.11 Contribution
0.01.12 Cost of Work
0.01.13 Delivery Slip
0.01.14 Encumber / Encumbrance
0.01.15 Force Majeure
0.01.16 General Manager
0.01.17 Intellectual Property
0.01.18 Joint Venture
0.01.19 Legal Representatives
0.01.20 Management Committee
0.01.21 Outside Contractor
0.01.22 Payment Schedule
0.01.23 Person
0.01.24 Plans and Specifications
0.01.25 Portion of the Tasks
0.01.26 Project
0.01.27 Project Manager
0.01.28 Proportionate Value
0.01.29 Proposal
0.01.30 Proposal Manager
0.01.31 Proposal Representative
0.01.32 Purchase Order
0.01.33 RFP (Request for Proposals)
0.01.34 Reserved Tasks
0.01.35 Scope of Work
0.01.36 Site
0.01.37 Site Manager
0.01.38 Subcontractor
0.01.39 Supplier
0.01.40 Tasks
0.01.41 Work
0.02 Entire Agreement
0.03 Applicable Law
0.04 Non-Compliance
0.04.01 Severability
0.04.02 Substitute Provision
0.05 Miscellaneous
0.05.01 Cumulative Rights
0.05.02 No Waiver
0.05.03 Time and Days
a) Time of the Essence
b) Computation of Time
c) Delays
0.05.04 Financial References
0.05.05 Cross-References
0.05.06 Gender and Number
0.05.07 Headings
0.05.08 Approval
0.05.09 GAAP
1.00 CREATION OF JOINT VENTURE
1.01 Purpose
1.01.01 Pooling of Resources
1.01.02 Objectives of Joint Venture
1.02 Name
1.03 Legal Registration
1.04 Head Office
1.05 Initial Monetary Contributions
1.06 Initial Interest of CO-VENTURERS
2.00 GOVERNANCE OF JOINT VENTURE
2.01 General Management
2.01.01 Governance
2.01.02 Appointment
2.01.03 Description of Duties
2.01.04 Replacement
2.01.05 Compensation and Reimbursement of Costs
2.01.06 Disclosure of Agency Role of General Manager
a) Duty of General Manager
b) No Authority to Bind
2.01.07 Service Agreement
2.02 Management of Proposal
2.02.01 Proposal Manager
2.02.02 Duties of Proposal Manager
2.02.03 Proposal Representative
2.02.04 Progress Meetings
2.02.05 Decisions
2.03 Management Committee
2.03.01 Role and Composition
2.03.02 President and Secretary
2.03.03 Replacement
2.03.04 Appointment of Committee Representatives
2.03.05 Eligibility
2.03.06 Compensation
2.03.07 No Reimbursement
2.03.08 Meetings
a) Frequency
b) First Meeting
c) Place
d) Notice of Meeting
e) Special Meeting
f) Agenda
g) Quorum
h) Adjournment
2.03.09 Decisions
a) Unanimity
b) Minutes
c) Transmission of Minutes
d) Approval of Minutes
e) Dispute
2.03.10 Decision in Absence of Meeting
2.03.11 Conflict of Interest
2.03.12 Presumption
2.04 Management of Work
2.04.01 Site Manager
a) Appointment
b) Responsibilities
c) Duties
2.04.02 Project Manager
a) Appointment
b) Role
2.04.03 Site Meetings
2.04.04 Decisions
2.04.05 Minutes
2.04.06 Approval of Minutes
2.04.07 Deadlock
2.05 Common Expenses
2.06 Financial Management
2.06.01 Books and Records
2.06.02 Banking Arrangements
2.06.03 Budget
a) Content
b) Amendments
2.06.04 Separate Accounts
a) Investment
b) Security Interest
c) Insufficient Credit
2.06.05 Operating Line of Credit
2.06.06 Monitoring of Invoices Received
a) Purchase Orders and Delivery Slips
b) Accounts Payable
2.06.07 Invoicing of the Tasks
2.06.08 Collection and Distribution
a) Amounts Invoiced
b) Subcontractors
c) CO-VENTURERS
d) Subcontractor(s) and CO-VENTURER(S)
2.06.09 Rendering of Account
2.06.10 Completion of the Tasks
2.07 Representation
2.07.01 Representative
2.07.02 Authorization
2.07.03 Borrowing
3.00 GOVERNANCE OF CO-VENTURERS
3.01 Confidential Information
3.01.01 Undertaking
3.01.02 Scope of Disclosure
3.01.03 Exclusive Property
3.01.04 Prohibition
3.01.05 Need-to-Know Basis
3.01.06 Protection
3.01.07 Identification
3.01.08 Copying
3.01.09 Non-Disclosure
a) Undertaking
b) Exception
3.01.10 Prohibition as to Use
3.01.11 Completion of Tasks
3.02 Good Faith
3.03 Resources
3.03.01 Leasing Agreement
3.03.02 Event of Default
3.04 Management of Proposal
3.04.01 Exclusive Rights
3.04.02 Allocation of Tasks and Timetable
a) Preliminary Tasks
b) Timetable
c) Notice
d) Indemnification
3.04.03 Resources
3.04.04 Expenses
3.04.05 Cooperation
3.04.06 Clarifications
a) RFP
b) Common Tasks
c) Reserved Tasks
3.04.07 Performance Bond
3.04.08 Price
a) Separate Pricing
b) All-in Price
c) Negotiations
a) Separate Pricing
b) Negotiations
3.04.09 Preparation
a) Technical Part of Proposal
b) Collaboration
c) Dissolution
d) Extinction of Obligations
3.04.10 Presentation of Proposal
3.04.11 Negotiations
a) Committee
b) Spokesperson
c) Attendance Required
d) Limitations
e) Dissenting CO-VENTURER(S)
3.04.12 Awarding of Construction Contract
a) Signing
b) Acknowledgement
3.05 Management of the Work
3.05.01 Laws and Standards
3.05.02 Site Security
3.05.03 Permits and Authorizations
3.05.04 Labour Laws
3.05.05 Undertaking of CO-VENTURERS
3.05.06 Support
3.05.07 Cooperation
3.05.08 Information
3.05.09 Allocation of Tasks
3.05.10 Disputes
3.05.11 Materials Used
3.05.12 Environment
3.05.13 Protection of the Site
3.05.14 Work Schedule
3.05.15 Modifications to Work
3.05.16 Changes or Additions to Portion of the Tasks
3.05.17 Inspection
3.05.18 Encumbrances
3.05.19 Impediment Affecting Work
a) Reason
b) Suspension of Performance
c) Duty to Mitigate
3.05.20 Delay
a) Notice
b) Extension
c) Expulsion
d) Damages
3.05.21 Liability
a) Limitation
b) No Additional Contribution
c) Portion of Tasks
3.05.22 Negligence
3.05.23 Clean-up
3.05.24 Completion of Tasks
3.06 Financial Management
3.06.01 Common Expenses
a) First Contribution
b) Subsequent Contributions
c) Default
3.06.02 Tasks and Materials
3.06.03 Management of the Specific Account
a) Contribution
b) Excess Amount
3.06.04 Operating Line of Credit
3.06.05 Financing
3.06.06 Invoicing
a) Frequency
b) Supporting Documentation
c) References
3.06.07 Collection
3.06.08 Taxes
a) Personal Responsibility
b) Undertaking
3.06.09 Distribution of Losses
3.06.10 Profits
3.06.11 End of Construction Agreement
3.07 Liability of CO-VENTURERS
3.07.01 Common Work
3.07.02 Claims
3.07.03 Penalties
a) Reserved Tasks
b) Common Tasks
3.07.04 Reserved Work
3.08 Insurance
3.08.01 Obligations of CO-VENTURERS
3.08.02 Copies of Policies
3.08.03 General Liability Insurance
3.08.04 Motor Vehicle Liability Insurance
a) Coverage
b) Endorsement
c) Public Auto Insurance
3.08.05 Property Insurance
a) Coverage
b) Deductible
c) Uninterrupted Coverage
d) Occupation
e) Reimbursement of Premiums
f) Beneficiaries of Insurance Proceeds
g) Collaborating with Insurers
h) Restoring of Work
i) Rights and Obligations Unchanged
j) Client Interest in Restoration
k) CO-VENTURER Interest in Restoration
3.08.06 Insuring Property of CO-VENTURERS
a) Approval of General Manager
b) Endorsement
3.08.07 Deductible
3.09 Performance Bonds
3.09.01 Bonds to Other CO-VENTURERS
3.09.02 Bonds to Client
3.10 Subcontractor
3.11 Human Resources
3.12 Protection of Joint Venture
3.12.01 Non-Competition
a) Scope of Undertaking
b) Penalty
c) Additional Penalty
3.12.02 Non-Solicitation of Personnel
a) Undertaking
b) Penalty
3.13 Intellectual Property
3.13.01 Undertaking
3.13.02 Mutual Licence
3.13.03 Discovery or Improvement
a) Ownership
b) Presumption
4.00 MUTUAL REPRESENTATIONS AND WARRANTIES
4.01 Authority
4.02 Binding Agreement
4.03 Canadian Resident
4.04 Canadian Status
4.05 Commission
4.06 Insurance
4.07 Nominee
4.08 Permits
4.09 Resources
4.10 Disclosure
4.11 Legal Proceedings
5.00 WITHDRAWAL OF A CO-VENTURER
5.01 Voluntary Withdrawal
5.01.01 Notice
a) Prior to Proposal
b) After Proposal
5.01.02 Mitigation
5.01.03 Indemnification
a) By Withdrawing CO-VENTURER
b) Waiver
5.02 Withdrawal of All CO-VENTURERS
5.03 Expulsion
5.03.01 Triggering Events
5.03.02 Decision-Making Power
5.03.03 Control
5.03.04 Equipment
5.03.05 Tasks
5.03.06 Liability
6.00 SPECIAL PROVISIONS
6.01 Relationship Between CO-VENTURERS
6.02 Force Majeure
6.03 No Assignment
7.00 GENERAL PROVISIONS
7.01 Notice
7.02 Dispute Resolution
7.02.01 Good Faith Negotiations
7.02.02 Mediation
7.02.03 Arbitration
7.03 Choice of Forum
7.04 Counterparts
7.05 Amendment
7.06 No Waiver of Rights
7.07 Language
8.00 TERMINATION
8.01 Mutual Consent
8.02 Without Notice
8.03 Early Termination
8.04 Prior Notice
8.05 Change in Control
9.00 EFFECTIVE DATE
9.01 Financing
9.02 Upon Execution
10.00 DURATION
11.00 SCOPE


SCHEDULE A [B, C] – EXCERPT OF THE RESOLUTION OF CO-VENTURER A [B, C]
SCHEDULE 0.01.07 – COMMON EXPENSES
SCHEDULE 0.01.11 – CONTRIBUTION
SCHEDULE 0.01.33 – RFP (REQUEST FOR PROPOSALS)
SCHEDULE 2.01.07 – SERVICE AGREEMENT
SCHEDULE 3.03 – LEASING AGREEMENT
SCHEDULE 3.05.09 – ALLOCATION OF TASKS
SCHEDULE 3.05.14 – WORK SCHEDULE
SCHEDULE 3.09 – PERFORMANCE BONDS



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