Fiduciary content in joint ventures and partnering contracts in the construction industry.
Begg, Paul D.
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‘Partnering’ is a co-operative arrangement in the construction industry which is commonly based on general expressions of trust, co-operation and good faith. However it seems that partnering parties can have negligible expectations that such general expressions will have any fiduciary content requiring them to moderate selfinterest or act in the interests of other parties. Where parties intend that either a general fiduciary relationship or specific fiduciary obligations should be created, it has been suggested that they should consider joint venture agreements and very careful drafting of contract obligations in order to achieve these intentions. This paper firstly examines the potential for fiduciary relationships to arise in joint ventures generally and from the drafting of the ACA Standard Form of Contract for Project Partnering (PPC2000) in particular. It then examines the possibility of distinct fiduciary obligations arising as a result of individual provisions of the PPC2000 contract form. It is concluded that joint ventures are not readily construed as fiduciary relationships and that whilst the PPC2000 partnering form is also unlikely to imply such a relationship, some individual provisions in it may have fiduciary content.