What is the Difference between an incorporated and unincorporated joint venture?

· Incorporated Joint Ventures:

1. Legally incorporated entities formed by contractors by sharing equity on an agreed basis

2. Used for long-term equity based partnerships and BOT/BOO/BOOT joint venture projects

· Un-Incorporated Joint Ventures:

1. Majority of contractor promoted joint ventures executed on an ad-hoc and project-specific basis for the purpose of short term objectives

2. These joint ventures are called unincorporated joint ventures

3. Offer more stability in the construction industry which is characterized by volatile and short-term nature

4. Straight-forward to be formed and to be brought to a closure, without the need to form a separate legally incorporated company (Norwood and Mansfield, 1999)