JOINT VENTURE IN CONSTRUCTION INDUSTRY
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ODAI KHALED ABDO
Construction industry is one of the most common and important industries in Palestine as in the entire world, the construction project becomes larger and more complex due to the development of the world. From here appears the idea of joint ventures in order to share the risk and benefits of the complex and large projects between different companies of the joint venture. A joint venture is a speculation for profit in which the risks and rewards are shared by two or more companies which are formed in association to combine their expertise, capital, property, skills and knowledge in order to execute a specific project. (Cidb, 2004) JV is one of the recent efforts in combating contractors problems in Palestine and it mentions one of the key challenges facing the construction industry today in the country especially when large and complex projects are involved. Construction joint ventures are formed for a number of reasons including pooling of resources, sharing of risks, undertaking large and complex projects, entry to a foreign market and business diversification. 1.2 Importance of the research The importance of the research is to determine and classify success factors and risk factors and find solutions for all problems that relate to the project that needs specialists, equipment, projects with high risk and duties on each contractor of JV. All these problems in Palestinian construction industry by joint venture will be solved. JV. Arrangements provide contractors with many opportunities to expand their businesses and spread risk, there are pitfalls and issues that should be considered when entering into such an arrangement. Contractors should use caution, address the issues, and come to a clear understanding with their venture partners to increase the likelihood of success.