Joint venture and consortium in international construction contracts

In recent years, as a result of the growth in the construction business, companies started to implement their investments by forming partnerships all over the world. Primarily, joint ventures and consortiums are prefered for the construction projects that require considerable amount of money and the projects carrying high risks. By forming such types of partnerships, construction companies can have a chance to reach new technology and information about different construction markets. Some difficulties in international construction sector like finance of projects, international bidding procedures etc. can be handled by joint ventures and consortiums. Both in the construction and the other commercial sectors, private parties or entities tend to prefer these partnership models because of the convenience of their formation. Joint ventures and consortiums can be adopted to all legal systems. According to the Turkish Code of Obligations, these partnerships are considered as unincorporated companies.