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.
Dragon Naturally Speaking Professional v.15 Software 2018-12-19 11:00 RFQ 1660216
Invitation for the provision of security services at head office for the department of social development 2019-01-29 14:00 NW/DSD/08/2018
Supply and Delivery Of Cabinet Five Drawer Shelf 2018-12-17 12:00 Q06.12.18
TRACK-IT Software Renewal 2018-12-18 12:00 Q09.12.18
Re-Supply and Delivery of 400lt Skid Unit Complete with Motor and Hose Reel. 2018-12-18 12:00 Q08.12.18
Videography and Photography Services for Cross Over 2018-12-20 12:00 Q07.12.18
Supply and Delivery of 6m Steel Container to Fairview 2018-12-18 12:00 241/2018/19
Supply and Delivery of Traffic Uniforms for Traffic and Law Enforcement Officers 2019-01-15 12:00 08/2/16/41
Supply and Delivery of Traffic Signal Materials (Until June 2020) 2018-12-20 10:00 CES 34/2018
Supply and Delivery of Road Traffic Signs (Until 30 June 2020) 2018-12-20 10:00 CES 33/2018
Invitation for the provision of security services at Dr. Kenneth Kaunda District for the Department of Social Development 2019-01-30 11:00 NW/DSD/06/2018
Invitation for the provision of security services at Dr Ruth Segomotsi Mompati District for the Department of Social Development 2019-01-31 11:00 NW/DSD/05/2018
Supply & delivery of toolboxes. 2018-12-20 10:00 DIE0015186
Supply & delivery of fluke clamp 375. 2018-12-20 10:00 DIE0015182
Appointment of a Service Provider to Design, Manufacture and Delivery of Two (02) Fire Trucks for a period of Eighteen months (18) for The North West Province and Maintenance of Three (03) years after delivery. 2019-01-31 11:00 CS&TM 07/18/19
Provision for municipal finance management programme 2019-01-14 12:00 GTLM/FS06/2018/2019
Supply and delivery of ready mixed, concrete 2019-01-14 11:00 FIN/SC/C1/09/2018
Supply and delivery of cement products, kerbs, etc 2019-01-14 11:00 FIN/SC/CP/09/2018
Supply and delivery of crushed stone, crusher sand, slurry seal 2019-01-14 11:00 FIN/SC/S1/09/2018
Upgrade of Rosendal Chlorine Station. (Supply and Install Chlorine Dosing Equipment) 2018-12-18 11:00 FQ/SM: 86/19

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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