Questions to Ask Before Partnering on a Development Project

In commercial construction and real estate development, partnerships can unlock incredible opportunities. Whether you’re teaming up with an investor, landowner, operator, or another developer, combining resources and expertise can make ambitious projects possible. But partnerships also come with risk — especially when expectations, responsibilities, and timelines aren’t clearly aligned from the outset.

At FCC Builders Canada, we’ve worked with many project teams formed by new or first-time partners. We’ve seen partnerships succeed — and we’ve seen what happens when important questions aren’t asked early enough. Before you formalize a partnership on a construction project, it’s essential to have open, honest conversations about more than just the end goal.

Here are some of the most important questions to ask before you commit to building together — questions that can save you time, money, and future conflict.

What is each partner bringing to the table?

It’s important to define who is contributing what — and in what form. One party may be contributing land, another capital, another operational expertise. Is everyone clear on what each contribution is worth? Are the roles balanced? Are there expectations of “sweat equity” versus financial equity? Clarifying these contributions upfront helps prevent disputes over ownership percentages, revenue sharing, and decision-making authority later on.

What is each partner’s role during the project?

Beyond contributions, what will each partner actually be responsible for once the project begins? Who is managing approvals and permitting? Who will oversee budgeting and financing? Who is responsible for tenant leasing, operations, or marketing? These roles may shift as the project progresses, but they need to be clearly defined at the outset. One of the most common pitfalls in joint developments is confusion over who is “in charge” of key decisions.

What are the timelines — and is everyone aligned?

Construction projects follow a strict sequence: site selection, design, permitting, financing, construction, and occupancy. Is everyone committed to the same schedule? Are there outside factors (like funding deadlines, municipal approvals, or franchise agreements) that could impact the timeline? It’s also wise to ask: What happens if there are delays? Are all parties prepared to remain involved if the schedule shifts?

How will decisions be made?

Decision-making should never be an afterthought. Will decisions require unanimous agreement, or can certain partners act independently within their areas of responsibility? Are there thresholds where a vote is required — such as exceeding the budget by a certain amount? What happens if partners disagree on a major issue? Having a clear governance model, even for smaller developments, helps avoid costly disputes and maintains momentum.

What is the exit strategy?

Partnerships often begin with optimism and shared vision — but circumstances change. One partner may want to sell early, while the other wants to hold and operate long-term. What happens if a partner wants out? Is there a buyout formula? Will the project be sold, refinanced, or transferred? Agreeing on an exit strategy doesn’t mean you’re planning to fail — it means you’re planning to protect everyone’s interests, no matter what the future holds.

What are the financial expectations?

Partners need to be on the same page about money — not just investment amounts, but also returns. How will profits be distributed? Will there be management fees? What happens if more capital is needed halfway through the project? Are all parties comfortable with the level of financial risk? Getting clear about how the financial side of the partnership works (including taxes, draws, and refinancing) is essential to maintaining trust.

Are all legal and regulatory issues covered?

Every development project involves contracts, permits, zoning, financing, and potential liabilities. Do all partners understand the legal structure of the entity that will own the project? Is there a partnership or shareholders' agreement in place? Are insurance and indemnification provisions properly documented? Working with a lawyer early is critical — and so is making sure each partner understands their rights and obligations.

Do the partners share the same vision?

It may sound basic, but alignment on the vision is key. Are you building to lease, to sell, or to operate? Is the focus on speed to market, long-term value, or community impact? Do your partners have the same standards for quality, branding, and tenant experience? Even small differences in vision can lead to big frustrations once construction begins. A successful partnership starts with shared priorities and a clear destination.

Final Thoughts: Ask First, Build Better

Strong partnerships start with strong conversations. The more clarity you create early on, the smoother your development process will be. It’s far easier to ask the tough questions at the beginning than to untangle a misunderstanding once you’re halfway through a project.

At FCC Builders Canada, we’ve worked with many developers, landowners, and investors who were partnering for the first time. We help guide teams through early-stage planning, clarify roles and responsibilities, and ensure the entire group is aligned before construction begins. Because great buildings don’t just require great materials — they require strong teams working together toward a shared goal.

Planning a project with a new partner? Let’s talk. FCC Builders Canada can help you build clarity into your process before you build anything on site.