6 TIPS FOR A SUCCESSFUL JOINT VENTURE
Joint venture is when two or more businesses pool their resources and expertise to achieve a particular goal. And with regards to a JV with a land owner it is the most trusted partnership they get into for the mutual benefit of both the parties, in this case the landowners and the builder join together to make a Residential, Commercial or Institutional building. A clear agreement is an essential part of building a good joint venture relationship.Every JointVenture with respect to terms with the builder are unique and specifically curated to the requirements of the landowner.Here are some additional key considerations to highly prioritise before entering into an Agreement.
1. Plan carefully
Every partnership should begin with careful planning. Review your business proposal to see if a joint venture is the best way to achieve your aims. Always ensure to have a minimum of 3 to 4 rounds of discussion in the various parameters, timeline, additional cost involved, the authenticity of the promise made and also to cross check on the ground rate of construction in your specified area and a background verification of the company to see if your partner is a good match.
2. Communication
Communication is a key part of building a relationship. Make sure that everyone involved understands the basics of the joint venture agreement, as well as the fine details, including goals, financial contributions and expected length of the construction, the common area and the minute detailing. It’s usually a good idea to arrange regular, face-to-face meetings for all the key people involved in the joint venture from the company side and the landowners side as well. In some cases, you may have to legally involve your advocate to ensure that all the paper work is intact.
3. Build trust​
Sharing information openly, particularly on financial matters, helps build trust and credibility, and can prevent partners from becoming suspicious of each other. The more trust there is, the better the chances that your relationship will work.
4. Work Together
It’s essential that everyone in the JV know what you are trying to commit to, for working together is a major task as the better output is achieved when there is similarity in the mind. Clearly convey the deliverables and the timeframe associated with that.
5. Be flexible
With two parties making decisions, things can get complex even with simple projects. You should aim for a flexible relationship. Regular and realistic review of the timelines of the project completion and handover as there might be hiccups here and there on the actuals VS the reality grounds.
6. Find a way to deal with problems
Even in the best relationship, you’ll almost certainly have problems from time to time. Approach any disagreement positively, looking for ‘win-win’ solutions rather than trying to score points off each other. Your original joint venture agreement should set out agreed dispute resolution procedures in case you are unable to resolve your differences.
Quick Snippet on the Most Important Background Verification to be done on the Builder for a more Profitable Handshake:
1. Ensure the Builder and the Projects they have handled are CMDA and RERA registered.
2. Ensure to have a complete check on the Builders pervious projects to have a quick glance on the Quality they have delivered and the overall view of the properties to see if they fit your expectations
3. Most importantly Ensure the financial capability of the builder to complete the project.
Forming a joint venture can be challenging, but if done right, it can be worth the effort. Initials efforts taken in finding the right builder to hand over your property is the 1st major step in taking a wise decision that you shall never repent. Previous projects of the builder can give so much insights on what you are entering into with respect to the quality of work, professional standards of the builder, the quality in execution and handling issues, the overall work ethics and majorly the contentment of the old clients. Giving someone your land is a small statement but does that end with just that, does it involve your handwork, your meticulous planning, your future, your peace and trust. Looking at the larger framework these attributes contribute to a major call for right decision. Ensure you have reinforced in your mind all these before signing up a Joint Venture to your property. For Fortune lies in the Detailing.
1. Ensure the Builder and the Projects they have handled are CMDA and RERA registered.
2. Ensure to have a complete check on the Builders pervious projects to have a quick glance on the Quality they have delivered and the overall view of the properties to see if they fit your expectations
3. Most importantly Ensure the financial capability of the builder to complete the project.
Forming a joint venture can be challenging, but if done right, it can be worth the effort. Initials efforts taken in finding the right builder to hand over your property is the 1st major step in taking a wise decision that you shall never repent. Previous projects of the builder can give so much insights on what you are entering into with respect to the quality of work, professional standards of the builder, the quality in execution and handling issues, the overall work ethics and majorly the contentment of the old clients. Giving someone your land is a small statement but does that end with just that, does it involve your handwork, your meticulous planning, your future, your peace and trust. Looking at the larger framework these attributes contribute to a major call for right decision. Ensure you have reinforced in your mind all these before signing up a Joint Venture to your property. For Fortune lies in the Detailing.