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.
Removal of Existing Boundary Fence, Supply and Erect New Clearview (or Equal – Must Be Approved), Anti-Climb Security Fence, Pedestrian and Drive Gates at Lere La Tshepe Campus 2019-03-15 10:00 LERE- FENCE- 2019
Removal of Existing Boundary Fence, Supply and Erect New Clearview (Or Equal – Must Be Approved), anti-Climb Security Fence, Pedestrian and Drive Gates at Bonamelo Campus 2019-03-15 10:00 BON- FENCE- 2019
Structural Repairs, Internal and External Repairs and Renovations, Plumbing and Electrical Repairs and Renovations to the Classroom Block at the Bethlehem Campus Heritage Building. 2019-03-15 10:00 BETH- OLDBLOCK- 2019
Construction of New Male and Female Ablution Facilities Including Water Storage Facilities, Grey Water Treatment Facilities and Electrical Installation at Lere La Tshepe Campus. 2019-03-15 10:00 LERE- ABLUTION- 2019
Structural Repairs and Foundation Repair to External Classroom Walls at Itemoheleng Campus 2019-03-15 10:00 ITEM- WALLS- 2019
Roof Structure and Roof Sheeting Repairs and Replacement, Where Necessary, Including Waterproofing at Lere La Tshepe Campus 2019-03-15 10:00 LERE- ROOF- 2019
Repairs Including Structural, Roof and Internal Changes to Fire Damaged Office Building – Central Office 2019-03-15 10:00 CENT- BUILDING- 2019
Supply and Establishment of Park Homes: Chwezi Clinic 2019-03-14 11:00 ZNB 9505/ 2018- H
Maintenance and operation of the Air Conditioners: Natalia Building: 3 year contract 2019-03-15 11:00 ZNB 5480/ 2018- H
Construction of New Educational Facilities and Demolition of Old Structures at Sophatisana Secondary School 2019-03-11 12:00 CDC/ 59/ 19
Renewal of Nintex Licenses, Including Support and Maintenance for Period of Twelve (12) ,Months for South African Social Security Agency (Sassa). 2019-03-11 11:00 RFB 1816/ 2018
Procurement of an Integrated IT Operations Network Troubleshooting Tool Including Maintenance and Support Services 2019-03-18 11:00 RFP 35- 2018
Appointment of a Contractor to Conduct Various Construction Projects, Including Installation of Bird Netting, Installation of Foot Baths and Vehicle Tyre Baths, Renovations to Enclosure Wire Roofs; and Modification To Small Mammal Enclosures, at the National Zoological Garden In Pretoria 2019-03-05 11:00 SANBI NZG: 326/ 2019
Appointment of a Contractor for the Design and Construction a New Animal Quarantine Facility at the National Zoological Garden In Pretoria. 2019-03-05 11:00 SANBI NZG: 329/ 2019
Appointment of a Contractor for the Design and Construction of a Masonary Boundary Wall, Covered Staff Parking and to Conduct Remedial Work at Food and Beverage Outlets at the National Zoological Garden In Pretoria. 2019-03-05 11:00 SANBI NZG: 328/ 2019
Appointment of a Contractor for the Design, Installation and Commissioning of an Incinerator at the National Zoological Garden In Pretoria. 2019-03-04 11:00 SANBI NZG: 322/ 2019
Appointment of a Contractor for the Design, Supply and Installation of Mechanical Equipment, Including Pumps, Stand By Generators and HVAC at the National Zoological Garden In Pretoria. 2019-03-04 11:00 SANBI NZG: 323/ 2019
Procurement of Cleaning and Hygiene services to SITA Durban building for a period of 36 Months 2019-03-08 11:00 RFB 1866/ 2018
Invitation to tender for Rental Office Space for Seda’s Tshwane Branch Office in Pretoria for a period of Three (3) or Five (5) years 2019-03-08 12:00 RFP/ T 14- 2018/ 19
Invitation to tender for Rental Office Space for Seda’s Gauteng Provincial Office in Johannesburg for a period of Three (3) or Five (5) years 2019-03-08 12:00 RFP/ T 13- 2018/ 19

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10 things to remember when you tender

By Werner van Rooyen

31 January 2019

There are many things that you as a small business owner must remember when you respond to a tender and sometimes responding to a tender can be overwhelming. Experience has taught me that there are some important things to remember when responding to a Tender and there are some less important things to remember when responding to a Tender.

Here are ten of the important things to remember when responding to a Tender. Please remember that all ten of these items mention here are equal... Read More

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