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.
Kwazulu-Natal: Department of Education: Kwamashu: J. G. Zuma High School: Water and Sanitation: Phase 3. 2019-06-21 11:00 ZNTD 03922W
ZNTD 03864W: WIMS 063948: Kwazulu-Natal: Department of Education: Stanger: Ikhusana Combined School: Water and Sanitation: Phase 3 2019-06-20 11:00 ZNTD 03864W
Kwazulu-Natal: Department of Education: Durban: Matabetulu Primary School: Water and Sanitation: Phase 3. 2019-06-20 11:00 ZNTD 03893W
Kwazulu-Natal: Department of Education: Maphumulo: Mankayiyna Primary School. Replacement of roof coverings to eight (08) classrooms 2019-06-24 11:00 ZNTD 03774W
ZNTD 03893W: WIMS 063666: Kwazulu-Natal: Department of Education: Ndwedwe: Magongolo Primary School: Water and Sanitation: Phase 3. 2019-06-20 11:00 ZNTD 03893W
Kwazulu-Natal: Department of Education: Hillcrest: Kwadinabakudo Combined School: Water and Sanitation: Phase 3. 2019-06-20 11:00 ZNTD 03829W
ZNTD 04062W: WIMS 064026: Kwazulu-Natal: Department of Education: Hillcrest: Khabazela High School: Water and Sanitation: Phase 3. 2019-06-21 11:00 ZNTD 04062W
Kwazulu-Natal: Department of Education: Esiphukwini Junior Primary School: Water and Sanitation: Phase 3. 2019-06-20 11:00 ZNTD 03844W
Kwazulu-Natal: Department of Education: Tongaat: Manaba Secondary School: Water and Sanitation: Phase 3. 2019-06-21 11:00 ZNTD 03939W
Kwazulu-Natal: Department of Education: Mandeni Primary School: Storm Damage Disaster programme: Phase 16 2019-06-24 11:00 ZNTD 04499W
ZNTD 03908W: WIMS 063648: Kwazulu-Natal: Department of Education: Shangase Village: Kwashangase Primary School: Water and Sanitation: Phase 3. 2019-06-20 11:00 ZNTD 03908W
ZNTD 03861W: WIMS 063906: Kwazulu-Natal: Department of Education: Stanger: Mazisi Ntuli Primary School: Water and Sanitation: Phase 3 2019-06-20 11:00 ZNTD 03861W
Tenders are hereby invited for the provision of Hygiene Services for a period of three(3) years. 2019-06-03 11:00 WCC- HYGIENE- 2019
ZNTD 03826W: WIMS 063740: Kwazulu-Natal: Department of Education: Inanda: Inanda Senior Primary School: Water and Sanitation: Phase 3. 2019-06-20 11:00 ZNTD 03826W
Tenders are hereby invited for the supply & delivery of electrical hand tools. 2019-06-03 11:00 WCC- ELECTRIC HAND TOOLS-2019
ZNTD 03865W: WIMS 063907: Kwazulu-Natal: Department of Education: Stanger: Ndleleni Primary School: Water and Sanitation: Phase 3 2019-06-21 11:00 ZNTD 03865W
Tenders are hereby invited for the supply and delivery of vehicles. 2019-05-27 11:00 WCC- NV- 2019
ZNTD 03866W: WIMS 063947: Kwazulu-Natal: Department of Education: Stanger: Mnawe Junior Primary School: Water and Sanitation: Phase 3. 2019-06-20 11:00 ZNTD 03866W
Tenders are hereby invited for the supply, delivery, installation & commission of fitting & turning machines 2019-06-03 11:00 WCC- FIT & TURN MACHINES- 2019
Tenders are hereby invited for the supply, delivery, installation & commission of fitting & turning machines 2019-06-03 11:00 WCC- FIT & TURN MACHINES- 2019

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Must my business be registered in order to tender?

By Werner van Rooyen

www.howtotender.co.za

31 January 2019

Once, a very anxious business owner phoned me and asked if I can supply him with a CK number. I was amused by this and first asked why he asked me for such a number and secondly for what did he need a CK number for? He said that because of my Tender Manual that he bought, he thought that maybe I can help him with a CK number. Also, at the briefing session of the tender that he was responding to, the person in... Read More

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