For this reason, the ICDB recommends and establishes standards and best practices for subcontracting agreements that can be used by key parts of the subcontracting work. The agreement must state in its entirety the financial contributions of each member, the qualities of leadership and the work done by each member. In a joint venture agreement, the other party is available from start to finish for the duration of the contract. The joint enterprise agreements concluded by this agreement must be developed by a professional who understands both the legal and technical aspects of SANS 1914. Most companies enter into this agreement with companies already present in the CIDB database. The CIDB joint venture combination calculator determines the potential CONTENT of CIDB for which they can qualify when they enter into such a joint venture agreement. Another peculiarity of the joint agreement is that if two or more partners registered with the ICDB form a joint venture, they can offer it for a contract with a higher CIDB class, whereas a subcontracting agreement has no influence on your CIDB level. In addition, a subcontractor must not be registered or reputable, while a joint venture created to guarantee a higher CIDB classification must be registered with the ZIEB. Whichever way you want to look at it, a joint venture agreement must exist at all times, and all parties must understand the terms of the agreement. Therefore, in this type of joint venture agreement, it is desirable that a professional who understands the legality of the construction industry should develop this type of joint venture agreement. This is the second most common type of joint enterprise agreement.
These combinations are available on their website under the title Joint Venture Agreements. But, as I said, all joint venture agreements must establish a written and legally sound document at all times, in accordance with SAFCEC standards. The third type of joint venture that is discussed here is the least popular. It`s about combining companies to bring together financial resources or skills. The joint enterprise agreements that are required in the context of public tenders must be concluded within the framework of the rules contained in SANS1914. The ICDB and other public authorities recognize that a number of companies may create a joint venture for a number of reasons.