Two licensees each have a monetary bid limit of $50,000. They want to form a joint venture for a $1,000,000 job. What must they do?

In a joint venture scenario involving two licensees, each with a monetary bid limit, they are required to combine their resources and capabilities to effectively bid on a larger project. The correct action is to obtain a separate joint venture license from the board. This is necessary because individual licensees cannot simply combine their bid limits to exceed their personal capacities without the proper licensing.

The joint venture license allows them to legally undertake contracts that fall outside their individual limits, effectively recognizing their union as a single entity for the purpose of the project. This also ensures compliance with legal and regulatory frameworks governing contracting, which often require specific qualifications and licenses for larger bids to maintain industry standards and protect public interests.

It is crucial for the licensees to follow this process to avoid potential legal repercussions that could arise from bidding on a project exceeding their individual limits without proper authorization.