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Project company
Each project sits in its own company, separate from other projects and from Reltic. Our participation is made through a separate development company.
Development management 08
Joint venture partnership
Your capital, our expertise, one project
On selected schemes we work as a joint venture partner: you provide the capital, and we contribute the appraisal, procurement and management of delivery in return for a share of the profit.
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A partner whose reward depends on the project succeeding
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Each project held in its own company, set up by solicitors
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The full development management service on the scheme
The problem
An adviser paid whatever happens
Some investors want a partner with something at stake, not only an adviser.
A consultant on a fee is paid whether or not the scheme makes money. That is the right model for many projects, but some investors want the person running the project to share the outcome.
Joint ventures set up informally, on a handshake or a short email, are where the worst disputes start: over who decides, who pays for an overrun and who gets paid first.
How a joint venture is set up
Agreed in writing, before any money moves
Each joint venture is structured for one project and agreed individually.
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Contributions
You provide the capital. We provide the appraisal, procurement and management of delivery. Any financial contribution from us is agreed individually.
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Profit share
Agreed for each project, usually with the investor’s capital returned first.
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Decisions
Who decides what, and which decisions need both partners, set out in advance.
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Overruns and delay
How additional costs are funded and what happens if the programme slips.
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Legal advice
A shareholders’ agreement prepared by solicitors, with each side taking its own legal and tax advice.
A joint venture should be agreed for the day things go wrong, not the day they go right.
Our position on joint ventures
This page does not offer any investment or promise any return. Development carries risk and capital can be lost. Every joint venture is agreed individually, in writing, with independent legal advice on both sides.
We act for one party on each project: as development manager for the investor, as monitoring surveyor for the lender, or as quantity surveyor for the developer. Never two of those on the same scheme.
Questions
Joint ventures, answered directly
Do you put money into the project?
Our main contribution is expertise and management. Any financial contribution is agreed individually for each scheme.
How is the profit shared?
It is agreed for each project, usually with the investor’s capital returned first, and set out in the shareholders’ agreement.
What if the project goes over budget?
The shareholders’ agreement sets out how overruns are funded and how decisions are made. Our role in cost control is to stop that happening.
What kind of schemes do you consider?
Residential and conversion schemes in London and the UK where the appraisal stands up on realistic numbers.
Insights
Further reading on partnership
Cost planning
When to appoint a quantity surveyor
By the time there are drawings worth measuring, the structural solution, the specification and the procurement route...
Read the article
Development finance
Why lenders want your equity in first
The order in which money goes into a scheme is not an accounting detail. It decides how much of your own capital is...
Read the article
Procurement and contracts
Collateral warranties and who actually needs them
A building contract binds two parties. Everybody else with an interest in the building, including funders, buyers...
Read the article