Joint Venture Agreement
Operate legally under joint venture agreements
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Regarding a model joint venture agreement for SBA 8a businesses, the U.S. Small Business Administration published final rules on February 11, 2011, that will revise the regulations of its 8(a) Business Development program to better ensure that the benefits flow to the intended recipients and help prevent waste, fraud and abuse.
The government contract attorneys at Watson & Associates, LLC have successfully helped both small businesses and large DOD contractors enter into, and perform federal contracts under a joint venture agreement. Particularly, our lawyers are known for our unique understanding of the SBA 8a regulations that regulate joint venture agreements and mentor protege programs. We assist companies by:
- Drafting appropriate contracts
- Advising the parties on their respective responsibilities
- Litigation support
- Resolve issues with 8a joint venture agreements and affiliation
- Get professional guidance and legal advice to avoid adverse actions
- Avoiding the possibility of fraud charges and investigations
- Government construction contracts
What is a Joint Venture Agreement?
The definition of a joint venture agreement is a strategic alliance between two or more companies. The companies involved in a joint venture share the revenues and expenses as well as the control of their new enterprise.
This document is used when two or more parties join forces to create a joint company or to collaborate on a specific joint project. This contract specifies each party’s percentage of ownership and the financial contribution demanded from each. The parties’ roles, responsibilities and relationship to the newly formed venture are also clearly established in this contract. In general, all parties agree to equally share profit, loss and control under a joint venture agreement. Financial details relating to company bank accounts and accounting methods are also specified in a Joint Venture Agreement.
8(a)Joint Ventures – The new rules require that the 8(a) firm must perform 40 percent of the work of each 8(a) joint venture contract that is awarded, including those awarded under a Mentor/Protege agreement, to ensure that these companies are able to “build capacity.” In other words, the SBA has discarded the vague “significant portion” test in favor of a requirement for a protege to perform 40 percent of the work performed under the joint venture agreement. Importantly, businesses that operate under an approved SBA mentor protege agreement, are exempt from affiliation rules.
Avoid Fatal Mistakes with SBA 8a Joint Venture Agreements: it must be clear that under an 8a joint venture relationship, the 8a company should be substantially benefiting from the relationship. Larger businesses that may enter into a mentor protege agreement may want to thoroughly understand any limitations imposed. Even corporate lawyers, sometimes believe that state law governs the joint venture. However, if the approval and subsequent modifications to a joint venture is the exclusive jurisdiction of the SBA, there is a strong argument to be made that Federal Law will control and disputes
Attorneys: Idris Keith Theodore Watson
Nationwide Services
Regardless of your state, government contract law allows our lawyers at Watson & Associates to handle joint-venture agreement matters across the country. Our law firm consistently reviews and drafts agreements for contractors in Denver, Colorado, Wyoming, Washington State, California, Maryland, New Mexico, Kansas and Nebraska, New York, Los Angeles, San Francisco, Chicago, Illinois, Michigan, Pennsylvania, Virginia, North Carolina, South Carolina, Arkansas, Colorado Springs, Utah, Oklahoma, Ohio, Maine, Florida, Texas, Nevada, Maryland, Louisiana, Las Vegas, Georgia, Hawaii, Alaska, Washington, DC, West Virginia, Florida, Indiana, Washington State, Mississippi, California, Tennessee, Tampa, Miami, Virgin Islands, Rhode Island, Vermont, Wisconsin, Minnesota, Missouri, Virginia, Delaware, Connecticut, Arizona, New Hampshire, Massachusetts and Montana.
Cities in which we help federal contractors with their joint venture agreement include Anchorage, AK; Atlanta, GA; Austin, TX; Chicago, IL; Colorado Springs, CO; Dallas, TX; Denver, Colorado; Indianapolis, IN; Las Vegas, NV; Los Angeles, CA; Miami, FL; Philadelphia, PA; San Antonio, TX; San Diego, CA; San Francisco, CA; San Jose, CA; Santa Clara, CA; and Tampa, FL.
Contact us
For immediate help and guidance with a joint venture agreement, contact an attorney at Theodore Watson & Associates toll free at 1-866-601-5518.
