Insight

A Partnership of Shared Fate: The Realities and Risks of Consortiums

Articles

Large, complex construction projects often require complex team-working arrangements to deliver them. In this article for the Overseas Construction Association of Japan INC. (OCAJI), Angus Rankin and Jess Webster explore some key considerations in navigating contractor consortium arrangements, and ways to mitigate the risks of working with partners.

There are many reasons why parties choose to enter into consortium arrangements, or why project owners may require them. While consortium arrangements inevitably present challenges and potential for internal conflict, they also offer significant opportunities for collaboration, risk-sharing, and access to broader expertise and resources. By maintaining a focus on collective objectives and putting in place robust contractual and claims management safeguards, consortium members can not only navigate difficulties more effectively but also maximise the chances of project success.


This information is provided by Vinson & Elkins LLP for educational and informational purposes only and is not intended, nor should it be construed, as legal advice.

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