By Lisa MacKay, Assistant Vice President, Senior Claims Examiner, Berkley Alliance Managers, a Berkley Company
September 10, 2026
The architecture, engineering, and construction (AEC) industry continues to evolve, joint ventures (JVs) have become an increasingly popular strategy for pursuing large-scale, complex projects. While JVs offer opportunities for collaboration, resource sharing and market expansion, they also introduce unique professional liability risks that design professionals must carefully manage.
What Is a Joint Venture?
A joint venture is a formal partnership between two or more entities that agree to share resources, responsibilities and profits for a specific project or business purpose. In the AEC context, JVs often involve design firms teaming up to pursue a high-profile project, meet client demands, expand geographic reach or combine specialized expertise.
Key Professional Liability Risks in Joint Ventures
1. Shared Liability Exposure
In a JV, liability is joint and several, meaning each party can be held fully responsible for the actions of the other. This can result in one firm bearing the brunt of a claim, even if its role in the alleged error or omission was minimal.
Risk Tip: Carefully draft the JV agreement to clearly define roles, responsibilities and indemnification provisions to allocate risk appropriately.
2. Ambiguity in Scope and Standard of Care
When multiple firms collaborate, differences in internal standards, Quality Assurance/Quality Control procedures, and documentation practices can lead to inconsistencies. These discrepancies may complicate the defense of a professional liability claim.
Risk Tip: Establish unified protocols for design review, quality management, documentation, and communication to consistently fulfill standard of care obligations.
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