Definitions of Joint Ventures Joint ventures come in many different iterations, so the following will provide a reference point

when referring to the different type of joint ventures. True Joint Venture this describes an arrangement whereby the joint venture holds the construction contract with the Project Owner and is also the employer of the all of the employees. Employees complete a J/V W-4 and receive a W-2 wage statement from the joint venture. Line Item or Paper Joint Venture this describes an arrangement whereby the joint venture holds the construction contract with the Project Owner but has no direct employees. The joint venture issues a subcontract to the venturers for certain scopes of the work and the employees remain on the venturers payroll. Either the joint venture or the venturers issue subcontracts to non-venturers. Silent Joint Venture this describes an arrangement whereby one party holds the contract with the Project Owner and performs all of the work. The silent joint venturer either provides surety credit, project financing or expertise in exchange for a share of the profits or losses from the project.

conclution
The advantages of forming a joint venture are obvious. Participation in a joint venture provides access to projects which an individual construction company would likely be unable to accomplish on its own while spreading the risks between a numbers of construction companies instead of just a single entity. A joint venture may also permit a company to expand into new markets such as integrated project delivery, design/build and public private partnership. These advantages need to be balanced against the expanded risks of participating in a joint venture. Joint and several liability may emanate from the activities of the partners creating

significant financial obligations to third parties. In addition, joint venturers need to guard against conflicts of interest between their individual companies and the joint venture. A key element of the Joint Venture Agreement will be a well defined insurance provision, detailing who is responsible for procuring insurance for the joint venture, i.e. the managing partner, along with a schedule of the types and limits of insurance to be carried and maintained by the joint venture. D. Case studies Successful cross border joint ventures. Indo Zambia Bank Limited, in Lusaka, Zambia. The Government of India contributed its share of 60% in the joint venture through its three largest public sector banks viz: Bank of Baroda, Bank of India and Central Bank of India, each contributing 20% to the share capital of the Bank, apart from seconding senior personnel from their banks. The Government of Republic of Zambia contributed the remaining 40% shares initially through Zambia Industrial and Mining Corporation (ZIMCO) which was subsequently transferred to Ministry of Finance and Planning, Government of Zambia. In an intensively competitive banking industry, Indo-Zambia Bank Ltd is proud to have made several significant contributions to the Zambian economy. Consistent with its founding principles and mission the bank is truly acting as a catalyst for the economic development of Zambia. The bank has designed innovative schemes and products that cater to the requirements of all sections of the Zambian economy/society whether it is Agriculture, Mining, Tourism, Trade, Manufacturing, SME, Real Estate etc.

Starting as a single branch bank in 1984, the bank has come a long way and has now twelve branches. The Bank is well represented at all the major business centres in Zambia. The bank is also planning to open more branches in future. The bank has attained a well deserved place in the banking industry in Zambia, and has become a household name as `The Bank You Can Trust.

The bank has formulated transparent, progressive business oriented policies that are not only customer friendly, but also comply with the tenets of good corporate governance. This has helped the bank to emerge as a professionally run Institution The bank is a shining example of a successful joint venture that has emerged out of the friendly ties between the two Republics of Zambia and India. Not so successful cross border ventures. Mahindra-Renault joint venture In a joint venture between the two companies, 51 per cent of the stake is held by Mahindra and Mahindra while the rest of 49 per cent is being held by French car maker Renault. But their first car Logan was a failure because of technical reasons as well as stiff competition from other makers. So this is the example of a not so successful joint venture