Details of the joint venture agreement are not always available when the joint venture is created. The services to be provided by each member can be agreed after the proposal has been accepted by the client. A less detailed agreement, a pre-proposal joint venture agreement, can be established prior to the submission of the proposal. If the proposal is successful, this agreement should be replaced by a final joint venture agreement. However, the objective of this model joint venture agreement is to create a manageable situation where its members can jointly respond to a call for tenders, submit a proposal and execute services appropriately using the resources of all members. Copyright FIDIC 1992 Fdration Internationale des Ingnieurs-Conseils (FIDIC) Boîte postale 311 All rights reserved. CH-1215 Geneva 15 No part of this Swiss publication may be reproduced without e-mail firstname.lastname@example.org permission of the publisher or by fax +41 22 799 49 01 or by e-mail email@example.com. WWW www.fidic.org A second objective is to provide members with a manageable agreement that defines clear responsibilities and capacities for action. It aims to avoid quarrels and blockages between members. The members of the Joint Undertaking should agree at all times, until the completion of the services, on a joint effort to modify performance and other challenges. In the absence of an agreement, all members may be held liable for non-compliance with their obligations due to differences of opinion between the members of the Joint Undertaking.
These two types of agreement are compatible with the fifth edition 2017 of fidic`s “Client/Consultant Model Services Agreement”. The normal legal approach is for members to act together on behalf of the Joint Undertaking. The natural result is that unanimity is necessary. It`s not really a practical approach. Obligations arising from a master service contract with the customer, for example. B “Client/Consultant Model Services Agreement” shall be supported by the Joint Undertaking. It is for each member to agree on the allocation of the same obligations and commitments within the joint venture, notwithstanding the fact that each member is generally jointly and severally liable to the customer for the provision of services under the main service contract with the customer and for breaches thereof. . . .
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