Themes & Modules

JV & Third Parties

Read about:

• Joint Ventures and Consortiums
• Sub-Contractors and Back-to-Back Contracts
• Vendors, Original Equipment Manufacturer (OEM), Suppliers, Consultants
• Payments, Roles, Responsibilities, Risks (including MSME and NCLT) and Protecting yourself

Joint Venture vs Consortium in Construction Projects – Differences, Risks and Joint Liabilities

Theme: Business Framework; Module: JV & Third Parties

Author: Dr. Pradeep Reddy Sarvareddy

Published Date: 11 Jan 2026

Joint Ventures and Consortiums are commonly used by contractors to qualify for large government and infrastructure projects, and includes several last-minute decisions on this “partnership”.  At the tender stage, the arrangement appears exciting and great for business growth.  Several aspects are taken care of initially itself like scope of work of each Partner, lead partner & Role, payment terms and escrow accounts, and then the bid is submitted.  The real issues surface later which could include tax notices, disputes, liquidated damages or even blacklisting, which affect each of the Contractors even if they had performed their scope of work perfectly.  This is when many Contractors discover that the legal structure and the risks that such structuring carried.  This article examines Joint Ventures, Consortiums, SPVs, AOP and incorporated vs unincorporated entities, the risks and benefits based on the structuring, and practical situations, risks & liabilities that arise for a partner’s actions.

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