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 and Laying of Pavement at Clanwilliam Fire Station 2018-10-30 12:00 6/5/2/310
Laboratory Services Needed For SANAS Accredited Testing Of Roads Materials 2018-10-29 12:00 6/5/2/386
National Security Refurbishment - Apollo, Minerva, Taunus, Westgate and Esselen - Package 2. 2018-11-19 10:00 PSCED0159
Training Course: Hygine and Cleaning Services at Moorreesburg 2018-10-30 12:00 6/5/2/111
Appointment of Service Provider to Supply, Install, Commission and Monitoring of CCTV Cameras at Polokwane Municipal Electricity Substations for period of three (03) years. 2018-11-19 10:00 PM78/2018
Provision of firefighter medical surveillance programme from September 2018 - June 2019. (As per attached specifications) 2018-10-25 11:00 288450
Supply and Delivery of Musical Instuments 2018-10-30 11:00 GQ10181966
Provision of Security Services at RTI Mkondeni DLTC. 2018-11-21 11:00 ZNB1432/17T (Bid Document R330.00)
Supply and deliver boat registration decals and numbers 2018-10-30 11:00 GQ10181967
Investigation and report on options for provision of tourism function in terms of section 7 & 78 of the municipal systems act. 2018-11-21 12:00 T32/2018/19
Tenders are invited to prepare Documentation For Principal & Subcontract Or Procurements for the construction of additional offices at the Disaster Management Despatch Depot 2018-10-30 11:00 CSQ10181463
Tenders are invited to prepare Preliminary And Elemental Estimates for the construction of additional offices at the Disaster Management Despatch Depot 2018-10-30 11:00 CSQ10181463
The supply and fitment of prescription lenses and frames for safety spectacles and the vision testing and certification of heavy duty drivers and driven machinery operators. 2018-11-22 10:00 KBG1871
Tenders are invited to provide Professional Quantity Surveying Services for the construction of additional offices at the Disaster Management Despatch Depot 2018-10-30 11:00 CSQ10181463
Tenders are invited for Reviewing the Existing Draft Economic Growth and Development Strategy 2018-10-30 11:00 CSQ10181462
Installation of eleven burglar alarms system at Worcester WWTW (as per attached specifications) 2018-10-31 11:00 289333
Supply and Delivery of Stationery. 2018-11-23 11:00 FIN-SCM28/2018/2019
Boxes Valve Fitted With Blue Round 250mm Lid Complete With Lockin Device - Sans 1/10525 Approved 2018-10-29 11:00 SQ10181292
Professional Services for Panel Town Planners. 2018-11-26 12:00 IHLM/73/10/2018-19/P&D
Boxes Fire Hydrant Fitted With Round 250mm Yellow Lid. Complete With Locking Bolts 2018-10-29 11:00 SQ10181292

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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