Consortium Agreements

Consortium Agreements are used to define the rights and obligations of each member of a Consortium formed by two or more individuals and/or companies with a common objective to develop land. Members retain their own identities but the agreement is the mechanism by which their relationship will be governed and to an agreed extent, the members will jointly participate in or pool resources to organise and manage the project. The share of payments and costs savings by members can be fixed and liabilities between the parties can be defined. Consortium agreements are often used by housebuilding companies and it is key that the common objectives and actions are identified and provisions are included to cover both the practicalities of working together and possible eventualities and to protect the parties involved. Davies and Partners is experienced in giving advice and dealing with such agreements.