What type of contract is formed when two contractors agree to combine their resources for a specific project?

A joint venture is a specific type of business arrangement where two or more parties agree to collaborate on a particular project or business opportunity. In this context, when two contractors combine their resources to undertake a project, they form a joint venture to leverage their respective strengths, share risks, and pool their resources effectively. This collaborative effort allows them to tackle larger projects or those requiring different expertise that one contractor alone might not be able to handle as efficiently.

In a joint venture, the parties typically draw up a formal agreement outlining their contributions, responsibilities, and how profits or losses will be shared. This distinguishes it from other arrangements, such as a partnership, where the entities are generally meant to operate as one business entity over a broader scope rather than for a specific project.

The other options refer to different types of arrangements. For example, subcontracting involves one contractor hiring another to perform a portion of the work. A fixed-price contract is a specific contractual agreement where the contractor is paid a set price for the work, regardless of the actual cost incurred. A partnership is a broader business arrangement that typically involves sharing profits, losses, and decision-making in a cohesive manner that does not specifically pertain to a single project.