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.
Atraumatic Graspers - 5mm - Length 36cm - Reusable 2017-08-01 11:00 ZNQ 524/ 17 - 18 GAZ
Curved Cutter / Stapler - Size: 3.0mm Length X 3.5mm Height 2017-08-01 11:00 ZNQ 523/ 17 - 18 GAZ
Modified Bipolar Vessel Sealing Device, Single Use -Small Jaw. as per Specification 2017-08-01 11:00 ZNQ 522/ 17 - 18 GAZ
Tubing, Latex (205) as per specification 2017-08-01 11:00 ZNQ 398/ 17 - 18 GAZ
Ligasure Impact Tissue Fusion - Open Instrument - Size: 13.5mm. as per specification 2017-08-01 11:00 ZNQ 355/ 17 - 18 GAZ
Catheter - Argyle - 40cm - Size 22g, as per specification 2017-08-01 11:00 ZNQ 299/ 17 - 18 GAZ
Patient Plate With Cable - Single Use. as per specification 2017-08-01 11:00 ZNQ 208/ 17 - 18 GAZ
Auto Suture Gia Premium 50mm X 3.8mm Loading Unit as per specification 2017-08-01 11:00 ZNQ 95/ 17 - 18 GAZ
Auto Suture Gia Premium 90mm X 3.8mm Loading Unit. as per specification 2017-08-01 11:00 ZNQ 94/ 17 - 18 GAZ
Sabs Approved Female Safety Shoes 2017-08-02 11:00 ZNQ: 257/ 2017/ 18
Appointment of a service provide to supply,deliver and install steel shelves to storeroom /archives/registry to the new and existing office blocks at 191-prince Alfred street building in Pietermaritzburg head office 2017-08-21 11:00 ZNT NO: 10/ 16/ 17
Postmasburg Dept of Labour: Alternative office accommodation: 475.00m² and 8 parking bays for a period of 5 years 2017-08-11 11:00 LS04/ 17
Calvinia Dept of Labour: Alternative office accommodation: 475.00m² and 9 parking bays for a period of 5 years 2017-08-11 11:00 LS05/ 17
Kimberley Dept of Water and Sanitation: Alternative office accommodation: 2930.68m² and 54 parking bays – for a period of 3 years 2017-08-11 11:00 LS03/ 17
Supply and Deliver Crepe bandage 100mm x 4.5m 2017-08-01 11:00 ZNQ: 200- 17/ 18
Supply and Deliver Bandage crepe 75mm x 4.5m 2017-08-01 11:00 ZNQ199- 17/ 18
Supply and Deliver single seat stainless steel chairs 2017-08-01 11:00 ZNQ: 189- 17/ 18
Supply and Install Diagnostic set wall mounted 2017-08-01 11:00 ZNQ: 193- 17/ 18
Supply and Deliver Abdominal Swabs Sterile X-ray detectable with loop. size 450mm x 370mm x 4 PLY 2017-08-01 11:00 ZNQ: 163- 17/ 18
Supply and Deliver: Portable Dental light with a carry bag 2017-08-01 11:00 ZNQ: 192- 17/ 18

Pages

Functionality and Tenders

In all competitive bids (tenders) you as the bidder will have to respond to Functionality. You will need to score a set minimum number of points, measured as a percentage, on Functionality of a competitive bid (tender) in order to advance to the next phase of evaluation in the tender process.

Usually Organs of State evaluate competitive bids (tenders) as follows:

  • The tender response is evaluated on Functionality where the bidder must score points out of a maximum of 100 points.
  • A threshold of between 65 to 75 out of 100 points... Read More
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