Drafting development joint venture contracts in an uncertain economy

The market is tough for development joint ventures (JVs), which are not helped by rising interest rates and the high cost of materials, and parties are looking at contracts more closely than ever. But despite challenging economic conditions, the market is resilient. A frequent misconception is that in JV agreements, contractual certainty and flexibility are mutually exclusive. In actuality, certainty and flexibility go hand in hand. Parties need certainty on everything from roles and responsibilities to funding, governance, business planning and more. But they also need the ability to move away from positions if required. Here, five key clauses that parties should try to build into their property JV contracts are presented. These include business planning, funding, and deadlock resolution.