A framework for successful contractors’ joint venture projects in Tanzania

The main objective of this study was to formulate a framework that can facilitate the creation of joint ventures between contractors in construction projects in Tanzania. In order to formulate a joint venture framework joint venture problems and success factors were established through survey and literature review. Data was collected from contractors in Dar es Salaam and Mwanza regions who had earlier entered in a joint venture projects. Based on the outcome of the field study and literature review attributes of joint venture frameworks were identified. The attributes include type, components, ownership and process to be adopted to create a joint venture. The four facets are key ingredients that need to be considered in creating joint ventures. The study concludes that the key success factors for joint venture projects include trust and good relation between partners, good joint venture management, fair sharing of rewards and risks, and availability of markets in terms of tenders. The study also concludes that challenges facing joint venture projects include organization and management problems between the partners and financial problems facing especially the local counterparts. Finally, the study concludes that in joint venture frameworks must address issues related to the type of joint venture, components of a joint venture, ownership, organization and administration of the venture, and joint venture creation process. The study recommends that a contract based on joint venture that is owned and shared by both parties is appropriate for contractors in Tanzania.