Issue Date: 
Monday, October 6, 2014

8 things you must know about Joint Ventures

By Werner van Rooyen

6 October 2014

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 it can be construed as being a Joint Venture. But once the parties of 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.

For more information on Joint Ventures or to get a Joint Venture Agreement please visit our website at www.how2tender.com. You will also find our Tender Manual there - the Tender Manual guides you through the whole process of responding to a Tender or a Request for Proposal.

Until next time.

Title Closing Date Tender No.
Silver electric surgical oscillating orthopaedic medical bone saw (maxi drive) with accessories 2018-08-01 11:00 ZNQ 144 / 2018 / 19
Service provider to service fire extinguishers and hose reels, the company must be CIDB 1ME grade or above. The kilometers from St. Apollinaris Hospital to the clinics (single trip to) is: Sokhela Clinic x 07 (+/- 45.5km); Malenge clinic x 07 (+/-27km); Sphamandla clinic x 07 (+/- 18km); Riverside clinic x 07 (+/- 18km); Kilmun clinic x 07 (+/- 27km); Qulashe clinic x 07 (+/- 52km). 2018-08-02 11:00 84/ 2018/ 2019NSI
Supply Kiwi complete vacuum delivery system with palm pump (50 set) 2018-07-30 11:00 433/ 17- 18
Supply 8 bay mobile filer (04 units) 2018-07-30 11:00 111/ 18- 19
Service provider to service floor cleaning machine and replace the switch, the kilometers from St. Apollinaris Hospital to the clinics (single trip to) is: Riverside clinic x 02 (+/- 18km); Sokhela clinic x 01 (+/- 45.5km); Sphamandla clinic x 01 (+/- 18km); Kilmun clinic x 02 x (+/- 27km); Qulashe clinic x 01 x (+/- 52km); Malenge clinic x 02 x (+/- 27km). 2018-08-02 11:00 86/ 2018/ 2019NSI
6 Units x Portable Vascular Access - Illumination System 2018-07-27 11:00 ZNQ 23- 2018/ 19
Desludging of septic tank, the kilometers from St. Apollinaris Hospital to the clinics (single trip to ) is: Malenge Clinic x 02 (+/- 27km); Riverside clinic x 01 (+/- 18km); Qulashe clinic x 01 (+/- 52km); Sphamandla clinic x 02 (+/- 18km); Sokhela clinic x 02 (+/- 45,5km); Kilmun clinic x 02 (+/- 27km) 2018-08-02 11:00 82/ 2018/ 2019NSI
Supply pop walking heels - large (10 000 units) 2018-07-30 11:00 427/ 17- 18
Appointment of a service provider to supply, install and migrate the existing server infrastructure to a virtual environment. 2018-08-10 11:00 SHRA/ RFB/ ADMIN/ 05/ 201819
Supply lockable stationery cupboard 6ft (24 units). 2018-07-30 11:00 136/ 17- 18
Service provider to clean Jojo tanks,the company must be CIDB grade 1ME or above,the kilometers from St. Apollinaris Hospital to the clinics (single trip to) is: Riverside clinic x 01 x 7500L (+/- 18km) Sokhela clinic x 04 x 5000L (+/- 45.5km) Sphamandla clinic x 08 x 5000L (+/- 18km) 2018-08-02 11:00 109/ 2018/ 2019NSI
Supply floor polisher machine R46 (16 units). 2018-07-30 11:00 136/ 17- 18
Service provider to service airconditioner at Kilmun clinic, the company must be CIDB 1ME or above x 06 unit 2018-08-02 11:00 111/ 2018/ 2019NSI
Supply combi steamer (01 unit) 2018-07-30 11:00 79/ 18- 19
Request for information: A Nursing College Administration System (NCAS) for the South African Military Health Service (SAMHS) nursing college 2018-08-10 11:00 RFI 1772/ 2018
Service provider to service airconditioners at St. Apollinaris Hospital, the company must be CIDB 1ME or above x 87 unit 2018-08-02 11:00 113/ 2018/ 2019NSI
Supply pasteo chairs maroon in colour (130 units) 2018-07-30 11:00 68/ 18- 19
Service to Threatre Aircondtioning And Plantrooms 2018-07-27 11:00 ZNQ 41- 2018/ 19
Provisioning, deployment and training of the Check Point firewall solution for the South African Police Service including support and maintenance for a period of 12 (twelve) months. 2018-08-10 11:00 RFB 1763/ 2018
Servicing of Genset -{720&960- Hour Service and Annual Electrical Service} at New Workshop and Kitchen Genset Plant as per Specification 2018-08-06 11:00 ZNQ 404/ 18- 19

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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