Effectiveness of Joint Venture for Local Contractors in a Mega Project Construction

Dagninet Cherinet

doi:doi:10.11648/j.ajce.20200804.13

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Effectiveness of Joint Venture for Local Contractors in a Mega Project Construction

Dagninet Cherinet

Published in American Journal of Civil Engineering (Volume 8, Issue 4)

Received: 4 August 2020 Accepted: 25 August 2020 Published: 14 September 2020

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Abstract

Mega Construction Projects are defined as a very large investment construction project, or aggregate of projects, characterized by magnified cost, extreme complexity, increased risk, lofty ideals, and high visibility, in a combination that represents a significant challenge to the stakeholders, a significant impact to the community and pushes the limit of construction experience. The main objective of this study was to assess effectiveness of joint venture for local contractor to construct a mega project construction. The specific objective of this study was to determine the effective way of formation and implementation procedure, to determine legal procedures and steps of joint venture between local contractors, to analyze different kinds of joint venture among local contractors and to analyze risk of joint venture among local contractors to construct a mega project construction. The study used both qualitative and quantitative research, and data collection method used was interview, close ended questionnaires’, different books, articles, and web sites. The study uses also purposive sampling technique. The study revealed that the most motivation factor and reason to form a Joint Venture in construction is to obtain technology transfer, the most selection criteria to select a construction JV partner is ability, experience and skills of JV partner and to succeed in JV performance a JV management should be strong. The study indicated that some of the articles form the commercial code explains about JV need an amendment. The study also indicates legal issues should be considering in Ethiopian commercial code to facilitate formation construction JV. This study also revealed the best JV type suitable for local contractors to establish domestic JV is a contractual JV type. Finally, the study shows that the most factors to create a problem in construction JV is unclear partner roles and the dominant risk factor associated with construction JV is partner parent company in financial problem. Also, the study came up with conclusion that the existing legal norm context about CJV should be revised with amendment of some of the articles from the existing commercial code of Ethiopia.

Published in	American Journal of Civil Engineering (Volume 8, Issue 4)
DOI	10.11648/j.ajce.20200804.13
Page(s)	97-105
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2020. Published by Science Publishing Group

Keywords

Joint Venture, Construction Joint Venture, Domestic Construction Joint Venture

References

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[2]	Beamish, P. W. and Inkpen, A. C. (1995) “Keeping international joint ventures stable and profitable”, Long Range Planning, 28 (3), 26-36.
[3]	Brockmann, C. & Brezinski, H. (2013). Contractual Joint Ventures for Megaprojects in Construction. Economics and Management of Networks Conference (EMNet) University Ibn Zohr Agadir, Morocco. 2-6.
[4]	Bryan A. Garner (ed.), “Black’s Law Dictionary”, (7th ed., West Group, St. Paul, Minn., 1999).
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[8]	Fiori, C., and Kovaka, M. (2005). “Defining megaprojects: learning from construction at the edge of experience.” Proc. Construction Research Congress 2005, American Society of Construction Engineers.
[9]	Hong, Y. and Chan, D. W. (2014). Research Trend of Joint Ventures in Construction: A Two-decade Taxonomic Review. Journal of Facilities Management (Final Accepted Manuscript). 12 (2): 1-2.
[10]	Hung Hom, Kowloon, Hong Kong, China, Albert P. C. Chan Professor and Associate Dean, Faculty of Construction and Environment, The Hong Kong Polytechnic University.
[11]	Inkeri Ruuskaa, Tuomas Aholaa (2011) “A new governance approach for multi-firm projects: Lessons from Olkiluoto 3 and Flamanville 3 nuclear power plant projects.” International Journal of Project Management.
[12]	J. David Rogers, ASCE, 2010, Hoover Dam 75th Anniversary History Symposium.
[13]	Minja, S. J., Kikwasi, G. J., and Thwala, W. D. (2012). A study of joint venture formation between construction organization in Tanzania. Australasian Journal of Construction Economics and Building. 1 (2): 1-2.
[14]	Ministry of house and construction: Ethiopian construction industry development policy, Approved by ministries of house of federation, 1^st edition (Amharic version), Addis Ababa, Ethiopia, 2014.
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[17]	Samuel Asfaw, (December, 2010) “The Exploration of the Legal Framework and The Practice Relating To “Joint Ventures” In Ethiopia: A Comparative Approach”, Addis Ababa University, Addis Ababa, Ethiopia.
[18]	Stewart, M. R., Maughn, R. D. (2011). International Joint Ventures, A Practical Approach. Davis Wright Tremaine. LLP\|877.398.841717595874-1: 1-2.
[19]	Yi HU Ph. D. Student, Department of Building and Real Estate, The Hong Kong Polytechnic University.
[20]	Zhiding Chen and Zhudi Sheng, Joint Venture Modes of Water Conservancy and Hydroelectric Engineering, JOURNAL OF Engineering Science and Technology 6 (2), 2013, 49 52.
[21]	Zirape, L. B., Warudkar, A. A. (2016). Risk Management in Construction Joint Venture Projects in Real Estate. International Journal of Engineering Science and Computing. 6 (4): 1-2.

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Dagninet Cherinet. (2020). Effectiveness of Joint Venture for Local Contractors in a Mega Project Construction. American Journal of Civil Engineering, 8(4), 97-105. https://doi.org/10.11648/j.ajce.20200804.13

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Dagninet Cherinet. Effectiveness of Joint Venture for Local Contractors in a Mega Project Construction. Am. J. Civ. Eng. 2020, 8(4), 97-105. doi: 10.11648/j.ajce.20200804.13

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AMA Style

Dagninet Cherinet. Effectiveness of Joint Venture for Local Contractors in a Mega Project Construction. Am J Civ Eng. 2020;8(4):97-105. doi: 10.11648/j.ajce.20200804.13

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@article{10.11648/j.ajce.20200804.13,
  author = {Dagninet Cherinet},
  title = {Effectiveness of Joint Venture for Local Contractors in a Mega Project Construction},
  journal = {American Journal of Civil Engineering},
  volume = {8},
  number = {4},
  pages = {97-105},
  doi = {10.11648/j.ajce.20200804.13},
  url = {https://doi.org/10.11648/j.ajce.20200804.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajce.20200804.13},
  abstract = {Mega Construction Projects are defined as a very large investment construction project, or aggregate of projects, characterized by magnified cost, extreme complexity, increased risk, lofty ideals, and high visibility, in a combination that represents a significant challenge to the stakeholders, a significant impact to the community and pushes the limit of construction experience. The main objective of this study was to assess effectiveness of joint venture for local contractor to construct a mega project construction. The specific objective of this study was to determine the effective way of formation and implementation procedure, to determine legal procedures and steps of joint venture between local contractors, to analyze different kinds of joint venture among local contractors and to analyze risk of joint venture among local contractors to construct a mega project construction. The study used both qualitative and quantitative research, and data collection method used was interview, close ended questionnaires’, different books, articles, and web sites. The study uses also purposive sampling technique. The study revealed that the most motivation factor and reason to form a Joint Venture in construction is to obtain technology transfer, the most selection criteria to select a construction JV partner is ability, experience and skills of JV partner and to succeed in JV performance a JV management should be strong. The study indicated that some of the articles form the commercial code explains about JV need an amendment. The study also indicates legal issues should be considering in Ethiopian commercial code to facilitate formation construction JV. This study also revealed the best JV type suitable for local contractors to establish domestic JV is a contractual JV type. Finally, the study shows that the most factors to create a problem in construction JV is unclear partner roles and the dominant risk factor associated with construction JV is partner parent company in financial problem. Also, the study came up with conclusion that the existing legal norm context about CJV should be revised with amendment of some of the articles from the existing commercial code of Ethiopia.},
 year = {2020}
}

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TY  - JOUR
T1  - Effectiveness of Joint Venture for Local Contractors in a Mega Project Construction
AU  - Dagninet Cherinet
Y1  - 2020/09/14
PY  - 2020
N1  - https://doi.org/10.11648/j.ajce.20200804.13
DO  - 10.11648/j.ajce.20200804.13
T2  - American Journal of Civil Engineering
JF  - American Journal of Civil Engineering
JO  - American Journal of Civil Engineering
SP  - 97
EP  - 105
PB  - Science Publishing Group
SN  - 2330-8737
UR  - https://doi.org/10.11648/j.ajce.20200804.13
AB  - Mega Construction Projects are defined as a very large investment construction project, or aggregate of projects, characterized by magnified cost, extreme complexity, increased risk, lofty ideals, and high visibility, in a combination that represents a significant challenge to the stakeholders, a significant impact to the community and pushes the limit of construction experience. The main objective of this study was to assess effectiveness of joint venture for local contractor to construct a mega project construction. The specific objective of this study was to determine the effective way of formation and implementation procedure, to determine legal procedures and steps of joint venture between local contractors, to analyze different kinds of joint venture among local contractors and to analyze risk of joint venture among local contractors to construct a mega project construction. The study used both qualitative and quantitative research, and data collection method used was interview, close ended questionnaires’, different books, articles, and web sites. The study uses also purposive sampling technique. The study revealed that the most motivation factor and reason to form a Joint Venture in construction is to obtain technology transfer, the most selection criteria to select a construction JV partner is ability, experience and skills of JV partner and to succeed in JV performance a JV management should be strong. The study indicated that some of the articles form the commercial code explains about JV need an amendment. The study also indicates legal issues should be considering in Ethiopian commercial code to facilitate formation construction JV. This study also revealed the best JV type suitable for local contractors to establish domestic JV is a contractual JV type. Finally, the study shows that the most factors to create a problem in construction JV is unclear partner roles and the dominant risk factor associated with construction JV is partner parent company in financial problem. Also, the study came up with conclusion that the existing legal norm context about CJV should be revised with amendment of some of the articles from the existing commercial code of Ethiopia.
VL  - 8
IS  - 4
ER  -

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Author Information

Dagninet Cherinet

Department of Construction Technology and Management, College of Engineering and Technology, Wolkite University, Wolkite, Ethiopia

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APA Style

Dagninet Cherinet. (2020). Effectiveness of Joint Venture for Local Contractors in a Mega Project Construction. American Journal of Civil Engineering, 8(4), 97-105. https://doi.org/10.11648/j.ajce.20200804.13

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ACS Style

Dagninet Cherinet. Effectiveness of Joint Venture for Local Contractors in a Mega Project Construction. Am. J. Civ. Eng. 2020, 8(4), 97-105. doi: 10.11648/j.ajce.20200804.13

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AMA Style

Dagninet Cherinet. Effectiveness of Joint Venture for Local Contractors in a Mega Project Construction. Am J Civ Eng. 2020;8(4):97-105. doi: 10.11648/j.ajce.20200804.13

Copy | Download

@article{10.11648/j.ajce.20200804.13,
  author = {Dagninet Cherinet},
  title = {Effectiveness of Joint Venture for Local Contractors in a Mega Project Construction},
  journal = {American Journal of Civil Engineering},
  volume = {8},
  number = {4},
  pages = {97-105},
  doi = {10.11648/j.ajce.20200804.13},
  url = {https://doi.org/10.11648/j.ajce.20200804.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajce.20200804.13},
  abstract = {Mega Construction Projects are defined as a very large investment construction project, or aggregate of projects, characterized by magnified cost, extreme complexity, increased risk, lofty ideals, and high visibility, in a combination that represents a significant challenge to the stakeholders, a significant impact to the community and pushes the limit of construction experience. The main objective of this study was to assess effectiveness of joint venture for local contractor to construct a mega project construction. The specific objective of this study was to determine the effective way of formation and implementation procedure, to determine legal procedures and steps of joint venture between local contractors, to analyze different kinds of joint venture among local contractors and to analyze risk of joint venture among local contractors to construct a mega project construction. The study used both qualitative and quantitative research, and data collection method used was interview, close ended questionnaires’, different books, articles, and web sites. The study uses also purposive sampling technique. The study revealed that the most motivation factor and reason to form a Joint Venture in construction is to obtain technology transfer, the most selection criteria to select a construction JV partner is ability, experience and skills of JV partner and to succeed in JV performance a JV management should be strong. The study indicated that some of the articles form the commercial code explains about JV need an amendment. The study also indicates legal issues should be considering in Ethiopian commercial code to facilitate formation construction JV. This study also revealed the best JV type suitable for local contractors to establish domestic JV is a contractual JV type. Finally, the study shows that the most factors to create a problem in construction JV is unclear partner roles and the dominant risk factor associated with construction JV is partner parent company in financial problem. Also, the study came up with conclusion that the existing legal norm context about CJV should be revised with amendment of some of the articles from the existing commercial code of Ethiopia.},
 year = {2020}
}

Copy | Download

TY  - JOUR
T1  - Effectiveness of Joint Venture for Local Contractors in a Mega Project Construction
AU  - Dagninet Cherinet
Y1  - 2020/09/14
PY  - 2020
N1  - https://doi.org/10.11648/j.ajce.20200804.13
DO  - 10.11648/j.ajce.20200804.13
T2  - American Journal of Civil Engineering
JF  - American Journal of Civil Engineering
JO  - American Journal of Civil Engineering
SP  - 97
EP  - 105
PB  - Science Publishing Group
SN  - 2330-8737
UR  - https://doi.org/10.11648/j.ajce.20200804.13
AB  - Mega Construction Projects are defined as a very large investment construction project, or aggregate of projects, characterized by magnified cost, extreme complexity, increased risk, lofty ideals, and high visibility, in a combination that represents a significant challenge to the stakeholders, a significant impact to the community and pushes the limit of construction experience. The main objective of this study was to assess effectiveness of joint venture for local contractor to construct a mega project construction. The specific objective of this study was to determine the effective way of formation and implementation procedure, to determine legal procedures and steps of joint venture between local contractors, to analyze different kinds of joint venture among local contractors and to analyze risk of joint venture among local contractors to construct a mega project construction. The study used both qualitative and quantitative research, and data collection method used was interview, close ended questionnaires’, different books, articles, and web sites. The study uses also purposive sampling technique. The study revealed that the most motivation factor and reason to form a Joint Venture in construction is to obtain technology transfer, the most selection criteria to select a construction JV partner is ability, experience and skills of JV partner and to succeed in JV performance a JV management should be strong. The study indicated that some of the articles form the commercial code explains about JV need an amendment. The study also indicates legal issues should be considering in Ethiopian commercial code to facilitate formation construction JV. This study also revealed the best JV type suitable for local contractors to establish domestic JV is a contractual JV type. Finally, the study shows that the most factors to create a problem in construction JV is unclear partner roles and the dominant risk factor associated with construction JV is partner parent company in financial problem. Also, the study came up with conclusion that the existing legal norm context about CJV should be revised with amendment of some of the articles from the existing commercial code of Ethiopia.
VL  - 8
IS  - 4
ER  -

Copy | Download