Issue Date: 
Thursday, January 31, 2019

8 things you must know about Joint Ventures

By Werner van Rooyen

31 January 2019

One of the most popular types of business arrangements that are being used by South Africans, in the Tender environment, is Joint Ventures.

There are eight things that you must know about Joint Ventures:

  1. Definition

A Joint Venture is a strategic cooperation where two or more people and/or companies agree to contribute goods, services and/or capital to a common commercial enterprise for the purpose of a specific tender or request for proposal.

  1. Difference between a Joint Venture and a Private Company

The moment two or more people and/or companies come together; to do business together it can be construed of being a Joint Venture. But once these parties to this business register a formal private company then it is no longer a Joint Venture.

  1. Difference between a Joint Venture and a Partnership

A Joint Venture often sounds much like a Partnership but the main difference between a Joint Venture and a Partnership is that the members of a Joint Venture have come together for a specific Tender or Request for Proposal, while a Partnership is usually formed between two or more people to run a business for an unlimited period of time.

  1. Share expenses

Each member of a Joint Venture only share the expenses of the specific Tender for which the Joint Venture was established.

  1. Income Tax

Each member of a Joint Venture is liable for their own Income Tax. If the Joint Venture is profitable the net income of the Joint Venture will be distributed to each member of the Joint Venture according to their percentage contribution towards the Joint Venture. The members will then be tax in their individual capacity or if the member of the Joint Venture is company, then the gains of the Joint Venture will form part of the income of the company and will be taxed according to company tax legislation.

  1. Ownership

Very important to realize is that each member of the Joint Venture retains ownership of their own personal fixed assets as well as their current assets.

  1. Bank account

It is important to open a separate bank account for the Joint Venture. You do not want your private funds to get entangled with the funds of the Joint Venture.

  1. Set of accounts

Always keep a separate set of accounts for the Joint Venture. You don’t want the Joint Venture transactions to get mixed up with your own transactions or those of your company.

So remember, before you dismiss a Tender or Request for Proposal as undoable, think of teaming up with other businesses and/or people in the form of Joint Venture and bid through the Joint Venture.

To learn more about this and many other tender conditions attend our “Become a Tender Expert” 2-Day workshops presented in Johannesburg, Pretoria, Durban, Port Elizabeth and Cape Town. Book and pay online at www.howtotender.co.za. Please contact Estelle at Estelle@howtotender.co.za should you require more information.

This article was written by Werner van Rooyen, Director of HowToTender (Pty) Ltd which specializes in tender consulting and tender training.

Title Closing Date Tender No.
Provision of training – Project Finance 2019-10-17 12:00 RFQ072/2019
Provision of training – Financial Modelling 2019-10-17 12:00 RFQ071/2019
Appointment of a suitable service provider for the provision of comprehensive pre-employment background screening and verification services including psychometric testing services for employment purposes for a period of three (3) years. 2019-10-22 11:00 RFP/2019-053
Consultancy services for the Enterprise Africa Network (EAN) - preliminary phase - preparation of logical framework 2019-10-25 15:00 AUC/TID/C/021
Western Cape Province: All Regions: All Facilities: Scheduled Maintenance General Building: Three Year Framework Agreement Designated 2019-11-20 11:00 S044/ 19
Repairs and renovations on blinds, air conditioning units, tiling and paint at DARD (Agriculture) King Cetshwayo District office, Umlalazi . 2019-11-12 11:00 KCD 19/ 2066
Repairs to roof, windows, doors, floors and painting in block of 5 classrooms at Threfall P School, Umhlabuyalingana 2019-11-11 11:00 ZNQ UM 256M/ 19- 20
Replacement of damaged and vandalised fence gate at DARD (Agriculture) Nsingweni Training Centre 2019-11-12 11:00 KCD 19/ 2067
GRIEKWASTAD: Rehabilitation of old SAPS canteen into offices for SASSA. 2019-11-01 11:00 KIM1175/ 2019
Department Of Social Development: Hire Of Office Accommodation for a period of 60 months at Ladysmith Ezakheni Township 2019-11-12 11:00 ZNTL008 W
Department Of Health: Hire Of Office Accommodation for a period of 60 months at Umzinyathi Distict Dundee 2019-11-12 11:00 ZNTL 6007 W
Department of Agriculture and Rural Development: Hire Of Office Accommodation for a Period of 60 Months at Utrecht 2019-11-12 11:00 ZNTL 6009 W
Appointment of The Local Installers to Conduct Direct - To - Home (Dth) Satellite, Digital Terrestrial Television (Dtt) Set - Top - Boxes Ad all The Related Accessory Installation to Qualifying Households inthe Free State Province 2019-10-31 11:00 USAF- POIFS/ 01/ 2019
THE LEASING OF LARGE FORMAT PLOTTER E-MULTIFUNCTION PRINTERS: The South African National Roads Agency SOC Limited (SANRAL) is soliciting tenders from an experienced service provider/s that will offer expertise in the leasing of large format plotter e-multifunction printers 2019-11-12 14:00 NRA 58000/ 1013/ 2019/ 04
Appointment of service providers for the Cleaning and Sanitation services at SASSA Eastern Cape for a period of Three (03) years. 2019-11-08 11:00 SASSA: 23/ 19/ CS/ EC
Supply, install, maintain and support an Automated Verifications System to the South African Qualifications Authority (SAQA) for five (5) years 2019-10-31 11:00 SAQA 0014/ 19 VP
Supply and delivery of Mobile Testing Stations and Weigh Bridges 2019-11-05 11:00 RTMC BID 19/ 2019/ 20
Terms of Reference To Request For Bids From Service Providers for BID NO OCJ2019/06: Anti-Virus and Malware Protection Solution for The Office of the Chief Justice 2019-11-08 11:00 OCJ2019/ 06
Appointment of a Service Provider to Render Maintenance Services of the Fire Hydrants, Extinguishers, Sprinkler Systems, Detection System, and Gas Suppression System for the HSRC Pretoria Offices for a period of three (3) years. 2019-11-01 11:00 HSRC/ 05/ 2019/ 20
Invitation to an open tender for the design and construction of an additional 616 M2 storage facility as well as the “design only” of locker rooms at the AIDC incubation centre at Ford Silverton 2019-11-01 11:00 AIDC_T02_2019/ 20

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5 ways to find available tenders

By W van Rooyen

www.howtotender.co.za

31 January 2019

We often get asked by business owners where can they find tenders that are currently available. Although we are not in the business of finding available tenders, our Tender Manual does have a chapter that deals with finding available tenders.

Due to the high demand for this I have decided to advise you on five different ways to find available tenders.

1. News Papers

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