Issue Date: 
Monday, January 19, 2015

10 features of a good Joint Venture Agreement

By W van Rooyen

www.how2tender.com

19 January 2015

A Joint Venture is a good business idea to compete for tenders if one does not have all the necessary expertise that are required for a specific tender. The thing to remember though is that you must have a solid Joint Venture Agreement in place for your Joint Venture. A good, rock solid Joint Venture Agreement will protect the participants to the Joint Venture.

Here are 10 features that any good Joint Venture Agreement must have:

  1. The purpose of the joint venture must be clearly defined;
  2. The percentage participation of all the members must be clearly stated. Remember that the members share in the profits and losses of the Joint Venture and this must be indicated as such.
  3. There must be a paragraph that provides for the formation of a management body for the joint venture;
  4. There must be consensus between the members to ensure that the activities of the Joint Venture will not be unjustifiably slowed down by failure to achieve it;
  5. The dispute resolution must be effective, easy and cheap to execute;
  6. There must be clear and comprehensive guidelines that sets out the contributions to be made by each member towards the activities of the joint venture in securing and executing the contract and should allocate monetary values to such contributions.
  7. All members must provide meaningful input to the management activities of the joint venture as well as policy making;
  8. There must be a safe guard to limit, as far as possible, any losses to the joint venture by the default of any Joint Venture member;
  9. The Joint Venture Agreement must be flexible enough to allow for joint ventures which differ in objectives, inputs by members and management systems;
  10. Last but not least the Joint Venture Agreement must be tender specific.

Make sure that your Joint Venture Agreement contains all these features. This will ensure that you are covered against most unforeseen contingencies.

You can find a Joint Venture Agreement on our website at www.how2tender.com. You will also find our newly revised Tender Manual 2015 there. The Tender Manual will teach you all you need to know to respond to tenders correctly and hopefully successfully.

Until next time - happy tendering.

Title Closing Date Tender No.
Conference facility with catering 2018-02-26 12:00 B651/2017/18
Supply: Gauge for spray Gun;1.3 Spray Gun;1.8 Spray Gun 2018-02-28 12:00 GD11800771
Service Provider to Train 50 Smme’s on the tender Document Processes 2018-03-01 12:00 RFQ / 358
Supply: Hardware items 2018-02-28 12:00 GG11800716
Appointment of a service provider to assist with the recruitment and selection process of Section 56 Managers 2018-02-27 12:00 RFQ 293/2017/18
Supply padlock; brass 2018-02-22 11:30 GG11800711
Accredited Firefighter 1 Training (Firefighter 1 course and Hazmat Awareness) 2018-02-27 11:00 296/2017/18
Supply ceramic tiles 2018-02-28 12:00 GG11800710
Trencing and Installation of Cables as and when required 2018-03-26 12:00 ENG012/2018
Provide Health Care Services - Medical Surveillance 2018-03-13 12:00 JCPZ/SHEQ01/2017
Recruitment Services 2018-03-13 12:00 JCPZ/HR03/2017
Monitoring and Inspection Services. 2018-03-13 12:00 JCPZ/RFP/NBD01/2017
To Operate, Maintain and to Supply Equipment in Sewer Treatment Plant 2018-03-27 10:00 MPPPSC001082
Supply solid SA pine timber 2018-02-28 12:00 GG11800714
Supply and deliver new borehole motor and pump combination 18.5KW 8.3l/s @ 125m (head) 2018-02-27 12:00 294/2017/18
Provision of Cleaning Services. 2018-03-14 11:00 OTT/444/201802
Request for Proposals are Invited for Investment in the Refurbishment and Management of the Rustenburg Showgrounds on a Long-Term Lease Basis 2018-03-27 10:00 RLM/DLED/0101/2017/18
Maintenance of Hydraulic Bin Compactors for two (2) years. 2018-03-15 14:00 58726
Request for Proposal for Drilling Two (2) Slim Hole Geologic Characterization Wells in the Zululand Basin for the South African Pilot Carbon Storage Project. 2018-03-16 11:00 435
Provisioning of Security Services in Mangaung Metropolitan, surrounding towns and Thabo Mofutsanyana District. 2018-03-16 11:00 FDC BID NO. 004/2018

Pages

Tender adjudication process

The SBD/WCBD6.1 document must form part of all bids invited.  It contains general information and serves as a claim form for preference points for Broad -Based Black Economic Empowerment (B -BBEE) Status Level of Contribution, and explains how tenders or bids are decided.

The document says:

  • The bidder obtaining the highest number of points will be awarded the contract.
  • Preference points shall be calculated after prices have been brought to a comparative basis.
  • Points scored will be rounded off to two decimal places... Read More
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