Sounds like a Joint Venture or JOA to me. You know one of thoes shell corps setup just for one project, intended souly to protect the Project Manager, staff, & JOA owners from liabiliy when it all goes south due to an overburden of paperwork and the inevitable infighting.
Just to keep things stright, there are certain generally accepted rules to forming Joint Operating Agreements.
1) Everybodys a "Project Manager". The staff must be top heavy to assure that there is no means by which to actually effectuate the project. Hence all Cheifs & no Indians.
2) You are not allowed to conform to GAAP, or any other generally acceptable busniess models. All accounting functions when place togeather must form a perfect circle so a to prevent detection of input and output of cash flow.
3) Industry standared contract form such as ADA G-Forms are strickly forbidden. All procurment contracts must provide for at least 20 instances of no less then 5 layers of referals to "other yet to be published" documents.
4) The main source of cashflow shall be done by procuring products and services from vedors, however providing no means by which to pay thoes vendors unless the JOA is paid in full by the end user. However since the end user must provide a 90% up front payment, thoes moneys will then be invested to accrue intrest, until sometime in the distant very future the project is paid in full and fully approve by the project owner.
...which brings us to... CASH DISBURSMENTS:
5)Now keep in mind that there will be no disbursments of funds to vendors or subcontractors until all Project Managers have fully approved all work in place. The approval process must take place successivly and NOT concurently so as to assure that all Project Managers are in possession and can review all previous successive notes and origional contracts. Each project Manager (including the "Java" Procurment Project Manager et..all) will be allowed a minimum of 30 days to review all disbursments. After disbursment approval, all disbursment check orders will be submited by the 10 day of the next month the the vendor for cash disbursments. The Cash Disbursment vendor will be allowed 30 days to produce the cash disbursment check to the JOA, which in turn will present the check to each of the JOA owners to co-sign. Each of the JOA owners will be allowed a minimum of at least 30 days to sign and return the Cash Disbursment Check to the JOA who will then be allowed a minimum of 30 days to provide it to the next JOA owner. After the last JOA owner has returned the Cash Disbursment Check to the JOA, then the JOA will be allowed a minumum of 30 days to produce the Cash Disbursment Check to the Vendor.
In short, get paid up front, Sub-contract all work, and withhold all disbursments for a min of two years from the date of submission from the sub-contractors.
If Tom J. reads this he might recogonize the basic structure and provide some other ideas from his expireance....(possably having been a subcontractor to a JOA or Joint Venture)
