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.
The appointment of a service provider to provide the National Energy Regulator of South Africa (NERSA) with Online Legal Publications for a period of three (3) years. 2019-06-06 11:00 NERSA/ 1920/ IRM/ OLP/ BID/ 003
Service provider to provide comprehensive travel management service 2019-06-03 11:00 ZNT19/ 20KZNSB01
Appointment of a Panel of Service Providers to Provide Quality Learning for MHSC Employees for a Period of One Year (01) 2019-06-19 11:00 MHSC009/ 2019- 20
ZNTD 03966W: WIMS 064110: Kwazulu-Natal: Department of Education: Hillcrest: Thabela High School: Water and Sanitation: Phase 3. 2019-06-21 11:00 ZNTD 03966W
Provision of Support and Maintenance of the electronic Legal Aid Administration System at Legal Aid South Africa National Office for a period of twelve (12) months. 2019-06-18 11:00 06/ 2019
iSimangaliso Wetland Park Authority invites suitable, qualified and competent legal firms to send requests for proposal to be considered as part of a panel of attorneys to provide legal services to iSimangaliso Wetland Park Authority 2019-06-07 16:00 RFP NUMBER: 03/ 2019
ZNTD 03878W: WIMS 063900: Kwazulu-Natal: Department of Education: Stanger: Tshelabantu Primary School: Water and Sanitation: Phase 3 2019-06-20 11:00 ZNTD 03878W
Re- Advertisement: Appointment of a Professional Service Providers for the Supply, Installation and Connection of Heat Pumps for 112 Units at Delville Ext 9 2019-06-19 11:00 EHCHPD/05/19
Provision of office accommodation for the ECRDA 2019-06-07 11:00 SCMU 02 – 2019/20:
Request for Proposals for the Provision of Ad Hoc Engineering Services for Dube Tradeport Corporation for a Period of 3 years 2019-06-10 11:00 DTP/ RFP/ 32/ IFR/ 11/ 2018
Appointment of a Service Provider for the Provision of Technical Support and Monitoring of Integrated Public Transport Network in 13 Municipalities over a Period of 36 Months 2019-06-07 11:00 DOT/ 01/ 2019/ PT
Conducting research on pharmaceutical pricing policies 2019-06-07 12:00 DPME 09/ 2019- 20
Fly-Trhough / Visual Rendering In Support of the Ndp 5 Year Implementation Plan 2019-05-31 12:00 DPME 08/ 2019- 20
The Department of Local Government (DLG) requires a Service Provider to provide the Municipal Minimum Competency (MMC) Training programme to identified officials. 2019-06-18 11:00 LG 02/ 2019/ 2020
Appointment of a service provider to provide employee wellness services to the Department of Home Affairs officials across all provinces, including Head Office for a period of two (2) years and eight (8) months 2019-06-07 11:00 DHA04- 2019
Terms of Reference for the Appointment of a Suitable Service Provider to Develop Monitoring and Evaluation Framework, and Evaluation Plan and Conduct The Mid-Term and Summative Evaluation for National Open Learning Project (Nols) by the Department of Higher Education and Training 2019-06-21 11:00 DHET124
The Appointment of a Service Provider to Provide an E-Legislation Portal on the Department’s Website for a period of 3 (three) years 2019-06-07 11:00 E 1513
Request To Bid for ANSYS Technical Support (TECS) Contract for ANSYS Commercial Software on Behalf of Department of Defence (Dod) SA Navy Engineering Services (NES) for a period of three (3) years. 2019-06-05 11:00 RFB 1939/ 2019
Request for Proposals for appointment of an service provider for short term insurance for a period of five (5) years 2019-06-10 11:00 CMS/ 022019/ 2020
Request for Proposals for appointment of an Editorial Consultant for a period of three (3) years 2019-06-18 11:00 CMS/ 032019/ 2020

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Extension of validity period

By Werner van Rooyen

www.howtotender.co.za

31 January 2019

Those of you who are familiar with responding to tenders will know that it is common practice for procuring entities to extend the bid price validity period. We received the undermentioned queries regarding the extension of the validity period of the bid price.

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