Contractors often pursue projects using a JV approach. The term, “joint venture,” (or JV) can mean different things. This column examines different JV approaches and their advantages and disadvantages.
JVs are often referred to as either populated or unpopulated. A populated JV has its own employees; an unpopulated JV does not. The unpopulated JV relies on each partner to perform work on behalf of the JV using its own resources. Contractors often prefer unpopulated JVs due to simplicity. These allow each venturer to perform tasks with its own resources on behalf of the JV, without transferring employees or resources to a different entity. Costs are simply charged to the JV.