Ragan: General contractors create joint ventures for many reasons. They help spread costs, improve access to new markets and help firms complete projects faster than they normally would.

Joint ventures also improve access to resources. We have 65 people working on SunTrust Park, the new Atlanta Braves stadium. If New South were the sole contractor, we'd have to dedicate half our company's resources to that one project, and wouldn't be able to focus on our other clients and markets.

Another benefit is the ability to leverage relationships. Again, in the case of SunTrust Park, New South has a 16-year relationship with the Braves organization, Barton Malow has a relationship because they built the Gwinnett Braves' stadium, and Brasfield and Gorrie also has a relationship with the organization.

GlobeSt.com: What are the most important factors in identifying joint venture partners?

Ragan: When choosing partners, the number one thing that we look for are companies that have our same values. We want to ensure our partners treat the clients and subcontractors the same way we do.

We look at how they perform in terms of production, marketing and their employee workforce. We also look at what their customers and suppliers say about them. We want to partner with people who treat clients and subcontractors the same way we do, with honesty and respect.

GlobeSt.com: Do joint ventures present any challenges?

Ragan: Yes, there are always challenges. The greatest challenges usually present themselves at the outset of a project.

At that time, it is crucial to establish clear terms, such as clarifying what percentage each partner is in for, what labor rates the joint venture will use, and safety and risk management policies, through a teaming agreement. For example, certain general contractors self-perform work.

On the SunTrust Park project, the team self-performed the concrete, which gave us control of an important portion of work, and also saved the owner money. Another consideration might be bonding. Like most construction companies our size, we bond major subcontractors. In this case, you have to determine how the partners share the risk and reward.

ATLANTA—Contractors regularly pursue projects as joint ventures for a variety of reasons. However, before inking an agreement, there are several factors to consider.

GlobeSt.com caught up with Rob Ragan, vice president of business development for New South Construction, to discover some best practices for running a successful joint venture and ensuring a win-win for all the involved parties. Since its founding in 1990, New South Construction has convinced some of the nation's most well-respected names.

Emory University, Delta Air Lines, The Coca-Cola Company, and General Mills are among the firms. New South has led many joint venture projects since its earliest work with Coca-Cola through today's SunTrust Park project.

GlobeSt.com: What are the benefits of creating joint ventures?

Ragan: General contractors create joint ventures for many reasons. They help spread costs, improve access to new markets and help firms complete projects faster than they normally would.

Joint ventures also improve access to resources. We have 65 people working on SunTrust Park, the new Atlanta Braves stadium. If New South were the sole contractor, we'd have to dedicate half our company's resources to that one project, and wouldn't be able to focus on our other clients and markets.

Another benefit is the ability to leverage relationships. Again, in the case of SunTrust Park, New South has a 16-year relationship with the Braves organization, Barton Malow has a relationship because they built the Gwinnett Braves' stadium, and Brasfield and Gorrie also has a relationship with the organization.

GlobeSt.com: What are the most important factors in identifying joint venture partners?

Ragan: When choosing partners, the number one thing that we look for are companies that have our same values. We want to ensure our partners treat the clients and subcontractors the same way we do.

We look at how they perform in terms of production, marketing and their employee workforce. We also look at what their customers and suppliers say about them. We want to partner with people who treat clients and subcontractors the same way we do, with honesty and respect.

GlobeSt.com: Do joint ventures present any challenges?

Ragan: Yes, there are always challenges. The greatest challenges usually present themselves at the outset of a project.

At that time, it is crucial to establish clear terms, such as clarifying what percentage each partner is in for, what labor rates the joint venture will use, and safety and risk management policies, through a teaming agreement. For example, certain general contractors self-perform work.

On the SunTrust Park project, the team self-performed the concrete, which gave us control of an important portion of work, and also saved the owner money. Another consideration might be bonding. Like most construction companies our size, we bond major subcontractors. In this case, you have to determine how the partners share the risk and reward.