The Engineers Joint Contract Documents Committee (EJCDC^®) has released two new editions of documents, EJCDC® E-580, Teaming Agreement to Pursue Joint Professional Services Opportunity, 2024 Edition, EJCDC® E-581, Agreement Between Owner, Design Engineer, and Peer Reviewers for Peer Review of Design, and EJCDC® E-590, Joint Venture Agreement for Professional Services, 2024 Edition. Prior to this release, these documents were last updated in 2017.

The new documents offer improved guidance for engineers and engineering firms seeking to collaborate with another entity. EJCDC documents are the first choice, and most user-friendly, among standard documents for infrastructure and public works construction in the United States and are available to members of the National Society of Professional Engineers at a 50% discount.

EJCDC® E-580 document is intended for a collaboration between two design firms (for example, two engineering firms, or an engineering firm and an architectural services firm; in certain cases, an individual design professional might be one of the team members) that have decided to join together to pursue an opportunity to obtain work. Such collaboration is often necessary because a single firm (or individual engineer) may not have adequate marketing resources, professional licensing, technical skill sets, available staff, or familiarity with the specific client or market, to pursue and land the assignment (or to subsequently perform the services) on its own.

The new EJCDC® E-581 provides guidance for the engagement of one or more peer reviewers to review and comment on the Engineer’s design. Such peer reviews are sometimes required by lenders, grant agencies, and project owners as a means of assuring the adequacy of the design and are useful to Owner and Engineer in identifying design elements that need further analysis, revision, or improvement prior to finalization of the design and the ensuing construction.

EJCDC® E-590 focuses on joint venture agreements for professional services. A joint venture (JV) is a business arrangement in which two or more parties join for the purpose of accomplishing a specific task. A joint venture is itself an entity, separate and distinct from the venturers’ other business interests. The E-590 is a contract document in which two or more design firms (for example, two engineering firms, or an engineering firm and an architectural services firm; in certain cases an individual design professional might be one of the venturers) agree to join together to provide specific professional services to a third party. Such collaboration is often necessary because a single firm (or individual engineer) may not have adequate financial resources, professional licensing, technical skill sets, or available staff to successfully perform the services on its own.

All three documents remain consistent with the overall content, risk allocations, and philosophical approach of their prior versions.  They have been updated for consistency with the most recent editions of EJCDC’s other professional services agreements, including terminology.

E-580 includes updated user guidance and notes and clarifies team expectations relative to mutual cooperation, exclusivity and right to cure in event of default. E-581 has new language to address more completely the roles of the parties regarding commissioning authority requirements.  

The E-590 updates are generally administrative in nature and the more notable modifications and clarifications to the update include clarification and guidance regarding the capital contribution process and updated, clearer language governing reimbursement of expenses and invoicing, and addressing confidentiality of documents.

EJCDC recognizes that there are many possible ways in which a joint venture can be structured and operated.  E-590 as published is best used as a starting point or platform for a joint venture agreement and all parties will want to seek legal and business advice in using E-590 for the formation of a project-specific joint venture.

The Engineers Joint Contract Documents Committee (EJCDC®) is a joint venture of major organizations of professional engineers and contractors:

• the American Society of Civil Engineers (ASCE);
• the National Society of Professional Engineers (NSPE); and
• the American Council of Engineering Companies (ACEC).

Since 1975, EJCDC has developed and updated fair and objective standard documents that represent the latest and best thinking in contractual relations between all parties involved in engineering design and construction projects. Purchase EJCDC documents online.