31.0118 Joint ventures.

Cite as [A.S.A.C. § 31.0118]

(a) A joint venture on a construction project is permissible and joint ventures are divided into 2 classifications:

(1) Joint venture on performance of work: This type of joint venture is permissible provided all parties to the joint venture hold contractor's licenses in the proper classification for the principal work to be bid or contracted.

(2) Joint venture on financing: A holder of a general building contractor's license may join himself with another person, firm, partnership, corporation, or association for purposes of obtaining credit or to obtain a cosigner for its obligations, or to obtain a higher maximum bid classification by use of the other's financial statement, provided all joint venturers are residents or conduct their business in the United States. Such person, firm, partnership, corporation, or association shall appoint an agent within American Samoa so that service of process and other notices, papers, and communications may be effected.

(b) Notice of intent to enter into either type of joint venture or partnership shall be filed with the administrator before a bid is submitted, and the administrator shall have complete discretion to accept or reject such joint venture. The administrator may demand a financial statement from such person, firm, copartnership, corporation, or association or other information he deems necessary. Such decision by the administrator shall be final and binding on the parties and no appeal shall lie whatsoever.

History: Contractors Lic. Bd. Reg. 2.13, eff 12 Feb 73.