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.
Professional Services for Panel of Land Surveyors for a period of 3 years. 2018-11-26 12:00 IHLM/72/10/2018-19/P&D
Extensions Hydrant 600mm Drilled to Fit London Type Hydrant Rillson Coated Blue Drilled Table 16 (Sabs) Drilled 4 Holes In Lieu of 8. 2018-10-29 11:00 SQ10181292
Supply and delivery of: Hellerman Tyton Power Analyser 3 phase and recorder T78 or equivalent (as per attached specifications) 2018-10-26 11:00 289168
3" Thomas Viking Johnson Joints Range Od88 - 103 2018-10-29 11:00 SQ10181292
4" Thomas Viking Johnson Joints Range Od108-129 2018-10-29 11:00 SQ10181292
Joints Short Collar 150mm Cast Iron Complete With Bolt, Nut And Rubber Rings Bitumen Dipped , Sanspar Only 2018-10-29 11:00 SQ10181292
Ward 8: 4 Leslie Road, Westriding: Stormwater pipeline extension (R100 non-refundable Tender Charge - Bank Cheques where the Drawer of the Cheque is the Bank OR cash only). 2018-11-09 11:00 1D-36071
Tyres 315/80/R22.5 Truck 2018-10-29 11:00 SQ10181291
Oil Transformer Bsi 72 Uninhibited. 2018-10-29 11:00 SQ10181291
Supply and delivery of water rescue personal protective wear 2018-10-26 11:00 290151
Blading of gravel roads in the West Region of eThekwini Municipality for 36 months (R1000 non-refundable tender charge - cash or bank guaranteed cheques only). 2018-11-16 11:00 1M-38624
Polythene 20 Mm High Density Pe 63 Pn 16 - Per 100 Metre Coils, Class 16 Only. 2018-10-29 11:00 SQ10181291
Pipes Polythene 25 Mm High Density - Per 100 Metre Coils Black , Class 16 Only. 2018-10-29 11:00 SQ10181291
Blading of gravel roads in the South Region of eThekwini Municipality for 36 months (R1000 non-refundable tender charge - cash or bank guaranteed cheques only). 2018-11-16 11:00 1M-38625
Scuff – sanding, seal and finish of wooden floor and stage of town hall. 2018-10-29 11:00 290918
Bolts/Nuts,M16 X 65mm H/Head Mild Steel (Fully Threaded) Must Be Delivered In Packets Of 50 Units 2018-10-29 11:00 SQ10181291
Blading of gravel roads in the North Region of eThekwini Municipality for 36 months (R1000 non-refundable tender charge - cash or bank guaranteed cheques only). 2018-11-16 11:00 1M-38626
Rivertown Precinct upgrade, Ward 26 (R1000 non-refundable tender charge - cash or bank guaranteed cheques only). 2018-11-16 11:00 3V-40053
Bolts M20 X 450mm Half Threaded Hex/Head With Nuts & 2 Washers (O/D 42mm X 22mm Hole 3mm Thick) 2 Curved Washers (M20 65mm X 65mm ,4 Mm 2018-10-26 11:00 SQ10181289
Insulators Line Post Insulator 22kv , 4kn , 150kv Billing , Capless Min Failing Load (Cantilever) 4kn Creepage Distance 550mm Type No. Ep 472/02 Or Approved Equivalent. 2018-10-26 11:00 SQ10181289

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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