Joint Venture

A joint venture is defined as an association of a DBE firm and one or more other firms to carry out single, for-profit business enterprise, for which the parties combine their property, capital, efforts, skills, and knowledge, and in which the DBE is responsible for a distinct, clearly defined portion of the work of the contract and whose shares in the capital contribution, control, management, risks, and profits of the joint venture are commensurate with its ownership interest.
When a DBE firm performs as a participant in a joint venture, TxDOT will count a portion of the total dollar value of the contract equal to the distinct, clearly defined portion of the work of the contract that the DBE performs with its own forces toward the DBE goal.
TxDOT will assess each joint venture agreement proposed to meet all or a portion of a DBE participation goal by using the following criteria:
  • Does the relationship, or any aspect of such, between the DBE and non-DBE conflict with the ownership and control requirements specified in contract provisions?
  • Is the DBE an independent business concern separate and apart from the non-DBE partner in the proposed agreement?
  • Is the DBE’s share in the ownership, control, management responsibilities, risks, and profits of the joint venture commensurate with the DBE’s ownership in a joint venture?
  • Does the agreement clearly define the work to be performed by the DBE?
  • Is the work to be performed by the DBE in conformance with the contractual and statutory provisions governing the DBE’s performance of a Commercially Useful Function?