Joint venture

Two or more firms forming a single bidding entity for a contract, sharing liability. Heavier than a teaming agreement, and sometimes needed for large tenders.

Also called: JV

Related terms

Consortium
A group of firms that bid together, with one usually acting as lead. Consortia let small firms meet turnover and capacity requirements they could not meet alone.
Teaming agreement
An agreement between firms to bid together, setting out who leads, who does what and how the work and money will be shared if they win.