Terms and Conditions Agreed on by Parties in Construction Work Joint Ventures

Chapter 1

Terms and Conditions Agreed on by Parties in

Construction Work Joint Ventures

Khairuddin Abdul Rashid, International Islamic University Malaysia

Introduction

In the context of construction work, when two or more parties agree to become partners in a

joint venture to execute a project, they may either (i) combine their resources and co-operate

during the bidding and the construction processes, jointly sharing the risks and profit of the

joint venture according to the resources each has brought to the joint venture; or (ii) enter a bid

together but confine their responsibilities, profits, and losses only to the part of the work they