So you decided that you wanted to pursue funding through Infrastructure Ontario. Many applicants consider completing a project alone, however is this the only option available?
Although it is possible for someone to pursue funding through Infrastructure Ontario on their own, in many cases proponents pursue projects using a partnership or joint venture. If going it alone, you will want to ensure that your balance sheet and financial position are strong enough to see you through the course of the project.
A common vehicle for Infrastructure Ontario projects is the partnership, where a group comes together for the duration of the project. Each partner is usually jointly and severally liable for the debts of the partnership and, for as long as the partnership remains, the partnership is an effective merger of the parties.
There is also the possibility to form a limited partnership, where a limited partner's liability is limited to the amount invested. It should be noted that a limited partner cannot take any part in the management of the firm or the limited partner loses the limited liability benefit and becomes liable for all debts of the partnership.
If you are considering forming a partnership it would be in your best interests to discuss the terms of the partnership and to enter into a partnership agreement with the other parties involved.
In the next blog we will be discussing a third format, the joint venture, that may be preferred in the context of Infrastructure Ontario projects.