Pros and Cons of Engineering Projects Being Undertaken by Joint Ventures (Essay Sample)

Pros and Cons of Engineering Projects Being Undertaken by Joint Ventures
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Over the years, man has become more developed and sophisticated in his engineering projects. The last century has seen a growing trend in the way human beings undertake engineering activities and projects. Engineers and contractors have become more strategic and are coluding in construction through joint venture arrangements. This allows them to compete better and provides more opportunities for growth in the construction market which is very dynamic, (Channon et.al, 2015). Through the formation of joint ventures engineers are able to spread the risks associated with the project, increase expertise, develop new products and attract new markets. However, despite the plethora of advantages that are associated with joint ventures, there are a number of negative outcomes that stem from the same.
Perhaps the main and most important advantage that is associated with joint ventures is the fact that it allows the sharing of risks and provides access to new markets and networks. Because joint ventures involve the coming together of different teams/individuals, this allows access to new and diverse knowledge as well as the sharing of liabilities, (Harrigan, 2017). Partnering with another business allows the business to share the market and new ideas. This will in turn lead to better products and increased profitability from the increased number of customers. Joint ventures also allow for more flexibility by both parties.
There are also a number of disadvantages that are associated with joint ventures, these include; more instances of conflict. Because a joint venture involves different people who may have varying plans and objectives, a gap in communication is bound to occur, (Channon et.al, 2015). Joint ventures may have more than one individual in control a situation which often leads to a conflict of interests. Also, individuals from different teams/backgrounds may find it hard to establish a common ground. Also, joint ventures tend to exhibit lower levels of commitment from the different part