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.
Appointment of a Professional Consulting Engineer For Planning, Design and Project Management: Refurbishment and Upgrading of Kameelmond Wastewater Treatment Works 2018-10-19 14:00 TN078/2018
Supply and delivery of fittings for MIG water meters project- Brandfort. 2018-09-26 12:00 2018/09/002
Supply and delivery of fittings for MIG water meters project- Winburg. 2018-09-26 12:00 2018/09/004
Supply and delivery of 4 core cables. 2018-09-26 12:00 13/09/2018
Quotation for 3x computer monitors, 3 laptops. 2018-09-26 11:00 KCDM/QUOTE/31/2018
Design, planning and project management of a steel structure with rooftop for the Dawid Kruiper Municipality 2018-10-12 14:00 TN078/2018
Development of an app & social media Platforms. 2018-09-26 11:00 C2/2018
Supply and delivery of digital camera and video camera. 2018-09-25 12:00 IHLM-46/09/2018-19/CS
Supply and delivery of chemicals 2018-09-25 12:00 Q005826
Supply and delivery of dry beans for led projects. 2018-09-25 12:00 Q005828
Supply and delivery of Geopositinal System (GPS) devices. 2018-09-25 12:00 Q005865
Supply and delivery of tools: Electrical Department 2018-09-27 11:00 FQ/SM : 2/19
Area East Career Expo Catering 2018- Exhibitors 2018-09-25 10:00 SM11900107
Supply, delivery and installation of a water flow meter system 2018-10-02 11:00 FQ/SM : 25/19
Consultant required to provide Monitoring, Evaluation, Accountability and Learning (MEAL) technical support to SCSA projects in Gauteng Province 2018-10-04 16:00 No reference number supplied
Supply of Services to Repair Traffic Signals and Associated Equipment within the Breede Valley Municipality 2018-09-27 11:00 288145
Consultancy services for SAP grant management implementation support 2018-10-05 15:00 ET-AUC-78675-CS-QCBS
Supply and Delivery of VBTS Collimator Insulating Piece. 2018-09-25 11:00 Themba LABS – RFQ/2018/19:84
Supply, delivery and Laying of Tiles 2018-09-28 11:00 280918
Procurement of Bus Services for Spring Schools – 4 x 30 Seater Buses. 2018-09-25 11:00 iThemba LABS – RFQ/2018/19:92

Pages

Advantages and disadvantages of Consortiums

Consortiums are often considered as entities to use when responding to tenders in South Africa. The question that arises is whether to use a Consortium or a Joint Venture when responding to a tender. To help you with this we have compiled a list of advantages and disadvantages for both Consortiums as well as Joint Ventures. In this article we list the advantages and disadvantages of Consortiums. Look out for the same article on Joint Ventures.

Consortiums Advantages:

  • Easy to establish as there are no formal procedures... Read More
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