Comparative Analysis of Joint Venture and International Consortium Construction Partnership Contracts: Challenges and Optimization Strategies

Abstract

Joint Venture (JV) and International Consortium (IC) contracts are among the most common mechanisms for financing and managing such projects, as they enable the pooling of resources, risk-sharing, and the utilization of multilateral capacities to execute large-scale undertakings. However, in Iran, the legal, managerial, and operational structures of these contracts have faced numerous challenges, resulting in decreased efficiency and increased investment risks in infrastructure projects. The primary objective of this research is to conduct a comparative analysis of Joint Venture and International Consortium contractual models, identify the current challenges in Iran, and propose solutions for optimizing their legal and managerial frameworks. This study employs a descriptive–analytical approach and draws upon credible domestic and international academic sources to examine the theoretical foundations, prior research, and comparative analyses of partnership contracts. Using a comparative legal analysis, the study evaluates the implementation models of Joint Ventures and International Consortia in various countries and compares them with the existing Iranian legal frameworks. The findings reveal that a lack of alignment between domestic regulations and international standards, weaknesses in risk management, bureaucratic complexities, and insufficient clarity in the allocation of responsibilities are among the key obstacles to the successful execution of these contracts in Iran. While developed countries adopt integrated models and apply international standards for structuring partnership agreements, Iran continues to face significant legal, financial, and managerial barriers in this field. To enhance the effectiveness of these contracts in Iran, the research recommends reforming legal frameworks, standardizing managerial procedures, and incorporating innovative financing models into Joint Venture and International Consortium agreements. The results of this study can serve as practical guidance for policymakers, project managers, investors, and partnership-based companies, paving the way for improved management of collaborative contracts in Iran.