Organizations

Legal forms of business Sole proprietorship General Partnership/Joint Venture Limited partnership Corporations (incl S-Corp and closely

held) Government organizations Non-governmental organizations (NGO)

Organization

Limited Liability Corporation No double taxation Unlimited number of members Separate legal standing (liability shield

for members) Can use guarantor pledge to pursue

specific projects without encumbering all

Simpler governance than c-corps (control by members)

Organization

Voting interest aligns with profit interest All members approve sale or transfer of

ownership interests (control votes) LLC dissolves on death resignation

expulsion, etc. of any member LLC starts with filing of Articles with state of

registry. Must include a dissolution date (LLC’s do not exist in perpetuity)

Check out differences at <http://www.mycorporation.com>

Project Relationships

Project delivery systems Traditional: owner- architect (agency)

provides oversight on owner-contractor (independent). Owner assumes risk

Construction Management- Owner- CM (agent) coordinates with Owner-architect (agency) and Owner-Contractor (independent) CM assumes risk for a fee

Design-Build- Owner- DB Company (agent or independent) DB assumes risk for fee- fast and economical, 70-90% of jobs in Europe and Japan