The DCHA encourages joint ventures with Section 3 businesses. In addition to performing the work, joint ventures will help Section 3 businesses strengthen their internal management structures, enhance their ability to expand their bonding capacity and subsequent market share and encourage them to learn from the technical expertise and experience of established contractors.
A Section 3 joint venture is an association of business concerns, one of which is a Section 3 business concern. The joint venture must be formed by a written joint venture, which must be submitted to the Section 3 Coordinator for confirmation that it meets Section 3 requirements. Under the terms of the joint venture agreement, the Section 3 business concern must be responsible for a clearly defined portion of the work and holds management responsibilities. The Section 3 business concern must perform at least 25% of the work and be contractually entitled to a proportionate share of the compensation.