Consortium/ Bidding consortium
A consortium is an association of at least two companies to handle a unitary order. Such an association is reasonable when one company can’t achieve the order on its own. This way of association mostly is chosen with bigger building projects, like road building.
Basically a consortium is about a partnership under the German Civil Code, so the German Civil Code prescriptions apply for it. The legal standardized prescriptions are often not enough to regulate the complex relations between constructors among each other or between building owners.
The German Civil Code does not include a prescription according to performance limitation among constructors. Further problem areas are sales tax liability, accrual of warranty deed among constructors, allowance and invoice as well as duty to inform amongst consortium partners.
A question of high interest also is at what point of time one consortium partner can take action for payment against the other partner.
We advise you at the consortium contract and furthermore we represent you in court if necessary.