For the employer, it is important to understand the limits of the consortium leader`s power. The employer should avoid requiring immediate responses where the consortium leader does not have prior authorisation and his or her partner is absent. An agreement on the ground would be contrary to the consortium agreement. This leads to further litigation within the consortium and can backfire on it for the employer. Neither the consortium nor the joint venture has a legal definition in UK law. The second term is normally used to describe different types of agreements in which two or more parties collaborate in the conduct of business activities. This translates for example. B by the common distribution of profits, the sharing of cash, assets, knowledge or skills. In the absence of detailed legal provisions governing the consortium or joint venture, the relationship between the parties to this type of agreement – when choosing a joint venture as a particular cooperation or partnership contract – is governed by customary law or the provisions of partnership law. A consortium contract governed by general contract law, similar to an ordinary social contract, does not create a separate entity.  For example, a unionized partner may be responsible for the supply of equipment subject to performance testing. The corresponding performance LDs are usually fully supported by this part. Of course, it becomes more complicated if the scale of multiple partners actually influences the overall performance of the project in an interdependent way.
In this case, the consortium agreement must define precise rules for the allocation of performance LDs. In order to issue a tender, the establishment of consortia does not require a particular legal form; it may be a permanent association, legally constituted, or an association formed for a given procurement procedure. As a result, unionized partners generally do not share the risks, but attribute them to a given party. An exception is the sharing of delayed LDs above a ceiling applied to the proportional share of a party. For these “extreme dilatory LDs”, the allocation is often made according to the proportional share of the parties. This article seems to assume that the JV is integrated. There are also unregistered JVs that look more like consortia. The Joint Undertaking will have its own bank account. For a consortium, the parties could identify a single bank account and redistribute funds based on their invoices. However, an employer can be pragmatic and agree to pay directly into the bank accounts of each of the unionized partners.. .