A typical agreement in a joint venture company satisfies each shareholder, plays to their (and/or their companies) strengths, and provides transparency when it comes to roles, responsibilities, finances, information, and more. Each shareholder would be expected to invest a cash amount based on their share percentage and recoup the same percentage in profits.
However, a joint venture with us is structured differently, which allows for additional benefits and cost savings, that aren’t usually an option with other JV partners, or even developers.
Our approach: Design and professional fees
Typically, a design and build contract would include, but is not limited to, design, contract administration, project management, and cost consultancy fees. These design and professional fees are in addition to the build costs. With MCL being a D&B contractor, we can provide these design and professional services for free as part of the joint venture company agreement.
Our approach: Reduction in profit and markup margins
As standard, D&B contractors (or any procurement method for that matter) would include a % markup to the measured works to allow for overheads and profit. As part of this joint venture company agreement, we would be prepared to strip out the profit from the measured works, therefore reducing the overall costs significantly.
Our approach: Open-book accounting for construction
Our approach to the JVC agreement will be ‘open book’, meaning full transparency with accounts and other project and investment-related financials. Open-book accounting is described as: a method of procuring work under which contractors are reimbursed on the basis of transparent records of the costs they have actually incurred.