Who Does What: Roles, Contributions & the Management Committee
# Who Does What: Roles, Contributions & the Management Committee
A JV succeeds or fails on **clarity** — who is responsible for what, and who decides. Sort this out *before* the first shovel.
## Contributions: what each partner brings
Spell these out in dollars and specifics:
- **Capital / working capital** — cash to fund early costs before the owner pays.
- **Bonding** — whose surety bonds the job, and how the indemnity is shared.
- **Equipment** — owned or rented, and at what rate the JV "pays" the owner of it.
- **Key personnel** — the project manager, superintendent, estimator, safety lead — by name.
- **Licenses & qualifications** — whose contractor license and past performance qualify the team.
## The management committee
Most JVs are run by a **management (policy) committee** with members from each partner. It sets budgets, approves major change orders and claims, hires/fires key staff, and resolves disputes. Voting is often tied to participation %, but **major decisions are frequently made unanimous** to protect the minority partner.
## The sponsor / managing partner
One partner is usually the **sponsor** (managing partner) who:
- Holds the JV bank account and keeps the books.
- Is the main point of contact with the owner.
- Runs day-to-day field operations.
The other partner still has committee oversight and audit rights — being the non-sponsor doesn't mean being in the dark.
## Sharing people without friction
The fastest way to sour a JV is confusion over staff. Good agreements state: who each key person reports to, whose payroll they're on, and how their cost is charged to the JV. Put it in writing.
**Takeaway:** Spell out every contribution and decision in writing — vagueness is what sinks joint ventures.
