In a project, there are a number of key points that determine the successful outcome of a project. For resolving those key points, the formation of a consortium is necessary. The formation starts with an agreement for governing the number of dominated issues. It is a relationship between parties for implementing a project. The consortium starts with an agreement describing the rights and responsibilities of both parties. There are various points for formulating this agreement which can be started by project definition and can be formulated further by an efficient thinking process. The discovery of problems at an early stage is an added advantage of this agreement.
“Consortium agreement is very effective for successful projects. Responsibility of projects distributed. ”
The consortium needs to describe the contribution of all project partners and the benefit of partners. Funding is an important issue for consortium and draft consortium is essential for the negotiation of such funds. Some of the agencies require consortium agreement for releasing funds.
In a consortium, some of the points are mandatory for arrangement. It starts with parties, identification of participating parties and various representatives. Project implementation is an important part that includes general responsibility, technical responsibility, and contribution of each party to the project. Indicating how much and kind of assistance provided to each other. Determine reports and timetable. Among other points of the contract, description of management, financial flow, confidentiality, ownership, liability, access right, duration, amendments, applicable law are considerable.
A project can be successful by starting a consortium. However, the responsibility of each party must be taken very carefully for a successful outcome.
Economic operator is important for consortium or joint venture. A joint venture(JV) can be formed between parties for common economic activity. The agreement describes clearly revenue sharing, share distribution, expenses and control over expenses.