In the real estate industry, especially in construction and property development, it is important to get things right in terms of Contract and Company. For example, by choosing a good corporate structure in case of a cooperation. BG.legal's specialists in Contract and Enterprise in real estate can advise you on the form of cooperation to choose and help you record the agreements.
Record cooperation
Suppose there is a tendering procedure. Selection criteria are then announced in advance. The contractors must meet these criteria in order to participate in the procedure at all. In principle, the contracting authority is free to choose selection criteria, so they can vary. But they may include, for example, turnover achieved with similar contracts, professional competence, size of the company, financial strength, etcetera. It may be that a company alone does not meet all the set selection criteria. Entrepreneurs can then join forces in order to bid jointly for the tender. At that point it is important to choose the right corporate structure.
Legal form with or without legal personality?
In principle, three forms of cooperation can be distinguished: cooperation through a cooperation contract, cooperation through a partnership and cooperation through a legal entity. So there are a number of corporate structures, but when should which structure be chosen? First of all, a distinction can be made between legal forms with and without legal personality. The partnerships are: general partnerships (vof), limited partnerships (cv) and partnerships. These partnerships do not have legal personality. This means that the owners are liable with their private assets and property for the debts of the company. In contrast, relevant legal entities include the following: the limited liability company (bv) and the public limited company (nv). Legal personality means that the bv or nv is an independent bearer of rights and obligations.
General partnership
According to the specialists on Contract and Enterprise in real estate, in many cases forming combinations in a general partnership is advisable when tendering. This allows the entrepreneurs on the one hand to meet the selection criteria (e.g. more turnover together or relevant works), on the other hand they can cover/spread their risks.When setting up (among other things) a general partnership, it is important to make agreements and record them (or have them recorded) in a contract. Agreements can be made about how you will deal with each other as partners, but also how you will separate if necessary. And for example about the financial contribution and of equipment, profit distribution, activities and powers and responsibilities.
Project development
Choosing the right partnership structure is important not only in contracting work, but also in project development. It may be wise to house the various projects in separate limited liability companies. In addition, operation/contracting should be separated from ownership of real estate to be developed. This, among other things, spreads the risks.
Contract and Enterprise in real estate: BG.legal is at your service
Should you have any questions on this or any other subject, our specialists in the field of Contract and Enterprise in real estate are at your service. This also applies, by the way, to other agreements that deal with construction such as the purchase/contracting agreement, the construction team agreement, but also terms of delivery or purchase conditions. Contact us today.
