Consortium Concept
Consortium concept consist in a group of two or more entities (could be companies or other type of organizations and even individual people) that are joined together in a concerted manner for the achievement of a certain project. Therefore it’s a way for companies of the same activity sector to take advantage of the several types of technical and commercial synergies and sharing of resources, investment and associated risk needed for the execution of the project. Sometimes are also composed consortiums between entities belonging to distinct activity sectors and that unite because they detain distinct and complementary competences needed for the execution of the project.
The purposes for which are generally composed consortiums are several, and may include the execution of new developments, the supply of goods to third parties produced by each one of the partners, the production of goods to distribute in specie by the partners, the research and exploitation of natural resources, among others.
In a consortium agreement, unlike what happens in other king of enterprise agreements, there isn’t the creation f a new entity but simply a cooperation contract among the partners. In this contract will define which the scope or object of the consortium and the role of each of the partners. Generally is also defined which one of the partners is the chief of the consortium, whom will have an internal management role of the consortium itself and the role of link before third parties.
