Issue Date: 
Wednesday, September 12, 2018

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 that must be followed. Most consortiums are formed in writing by the execution of a consortium agreement. In addition, no capital is required to create the consortium.
  • Members of the consortium can change their contractual agreement at any time to suit changed circumstances.
  • The consortium can be set to expire on a given date or on the occurrence of certain events without any formal requirements.
  • The consortium is not directly subject to taxation; however the individual members are.
  • Some of the members of a consortium may choose to be 'undisclosed' in dealings with third parties.
  • The cost of running a consortium is generally lower to that of a joint venture..

Consortiums Disadvantages:

  • It is difficult for consortium members to restrict or limit its liability. Members may even become liable to third parties for the non-performance of other members of the consortium or the debts of such members in undertaking a common project.
  • Third parties will often find it difficult to enter into contract with a non-legal entity like a consortium. Because it is a non-legal entity funding is also difficult.

To learn more about this and many other bid conditions please attend one of our HowtoTender workshops. For more information on the tender courses please email Estelle at estelle@how2tender.com.

Title Closing Date Tender No.
Supply, Delivery and Installation Of Bulk Filers 2018-10-31 12:00 Q22.10.18
Supply Tools and equipment 2018-10-30 12:00 GD11900474
Training: Health and Safety Representative Unit Standard 116518 Level Two (2) 2018-10-26 12:00 Q18.10.18
Supply and delivery of sound equipment. 2018-10-25 11:00 GK11900187
Supply: Cartridge 2018-10-25 11:00 GM11900312
Training: First Aid Training Unit Standard 1119567 NQF Level One (1) 2018-10-26 12:00 Q17.10.18
Supply and delivery of Laserjet Cartridges 2018-10-26 12:00 Q21.10.18
Supply and delivery of Forms 2018-10-26 12:00 Q20.10.18
Supply and Delivery of Material for Upgrading of Roads and Stormwater in Rietbron. 2018-11-07 12:00 31/2018
Overnight Delivery Services for a Period of Twelve (12) Months and when required 2018-10-26 12:00 Q19.10.18
Supply and install relay protection, Port of Cape Town. 2018-11-08 10:00 BLE RME 5097/2018
Service, repair and maintain all kitchen equipment for 24 months. 2018-11-09 11:00 KIM-0718-107087
KURUMAN STATISTICS SOUTH AFRICA: Alternate office accommodation 461.36m² and 15 parking bays for a period of 3 or 5 years. 2018-11-09 11:00 LS14/2018
Supply, delivery and installation of access control equipment 2018-10-31 11:00 FQ/SM: 47/19
Repairs/ maintenance of pilot & work boat Tristan tern during dry docking. 2018-11-13 12:00 PAC 264
Mhlathuze Water is calling for interested and suitably qualified and accredited training service providers to submit proposals for inclusion in the panel of training service providers for the period of three years. 2018-11-16 12:00 MW/3/7/2018
Design and construction of a new polymer tank bund wall at Nsezi WTW 2018-11-12 16:00 MW/18/10/2018
Appointment of One Service Provider to Supply, Print and delivery of sport Apparels/Promotional materials of all sport and Recreation events for a period of three (03) years (Re-advert). 2018-11-19 10:00 PM151/2018
Operational Due Diligence: Alleyroads. 2018-11-19 11:00 AC/10/2018
Provision of Maintenance and Calibration Services for Some or All of the following Laboratory Equipment: Climatic, Photometry and Electrical Test Instrument, an Electrical Energy Reference Standard and an Environmental Test Chamber as and when required for the period of three years. 2018-12-05 10:00 ERIC1041

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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