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.
Betterment and Re-gravelling of Local L1428 in the Amajuba District 2019-06-12 11:00 C253/ 1920/ BR/ 800
Betterment and Re-gravelling of P43 in the Amajuba District. 2019-06-11 11:00 C253/ 1920/ BR/ 815
ZNTD 03846W: WIMS 063754: Kwazulu-Natal: Department of Education: Kranskop: Sibanisethu Primary School: Water and Sanitation: Phase 3 2019-06-20 11:00 ZNTD 03846W
Betterment and Re-gravelling of District Road D89 Ext. in the Amajuba District 2019-06-12 11:00 C253/ 1920/ BR/ 809
Provisioning of Satellite Airtime in support of systems in service in the S.A. Navy. (Bgan, Fleet Broadband & Iridium). 2019-06-19 11:00 SPSC- B- 003- 2019
Re-gravelling of Local Road L3353 in the Amajuba District 2019-06-11 11:00 C253/ 1920/ BR/ 801
RFI - Request for information from industry on the upgrading, repair and commissioning of automotive fuel storage and dispensing facilities for the South African Navy as per Specification: RFI/NES/FUEL/001 dated April 19. 2019-07-17 11:00 RFI- SPSC- 1- 19
Request for acquisition of Online Information Resource Services for a period of two (02) years 2019-06-10 11:00 RFB 1940- 2019
Appointment of a service provider to supply, deliver and assemble office furniture to the Department of Agriculture, Forestry and Fisheries for a period of three (3) years 2019-06-06 11:00 4.4.12.4/ 2/ 19
Appointment of a Suitable Service Provider to Provide Office Accomodation to the MICT Seta Midrand Head Offices for a period of sixty months (5 years), subject to Mict Seta Licence Renewal on 31 March 2020 2019-06-07 11:00 MICT- SETA/ GAU/ 2019
Request for Proposals for appointment of an service provider for security services for a period of five (5) years 2019-06-10 11:00 CMS/ 012019/ 2020
Re- Advertisement: Appointment of a Building Contractor for Refurbushment and Alterations Project of Old Ehc Offices to Retail Space at Pharoe Park Block H 2019-06-18 11:00 EHCCRP/05/19
Request for Proposals for the Construction of Civil and Electrical Infrastructure to Service Agrizone 2 Located at Dube Tradeport DTPC was created as a provincial public entity to develop Dube TradePort 2019-06-17 11:00 DTP/ RFP/ 36/ IFR/ 01/ 2019
The South African Social Security Agency hereby invites of suppliers to bid for the supply and delivery of stationery for SASSA - Limpopo Region for a period of 36 months 2019-06-07 11:00 SASSA: 06/ 1/ CS/ LP
Supply and delivery of sterilisation related items 2019-06-18 11:00 RT28- 2019
Appointment of a Registered Professional Architect to Provide Professional Services at Faith Mlaba Primary School 2019-06-14 11:00 WIMS 064213
Replacement of Radioimmunoassay (RIA) system) for Challotte Maxeke for a period of five (5) years. 2019-06-07 11:00 RFB002/ 19/ 20
Appointment of a Registered Professional Quantity Surveyor to Provide Professional Services at Faith Mlaba Primary School 2019-06-14 11:00 WIMS 064213
Placement of Automated Real time PCR system for Charlotte Maxeke for a period of five years with service and maintenance. 2019-06-07 11:00 RFB207/ 18/ 19
Placement of MagnaPure 24 automated DNA extraction system for NICD for a period of three years. 2019-06-07 11:00 RFB206/ 18/ 19

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Tender Site Visits

By Werner van Rooyen

www.howtotender.co.za

31 January 2019

If you are so fortunate to have reached the stage where Organs of State or Private Sector Companies want to do a site visit, you must know that you are in the final stage in winning that tender that you have responded to.

But what must you do to prepare for a site visit?

The first thing is to ensure that your place of business is in excellent order. Be sure everything is clean and neat. A clean workshop or office is a pre-... Read More

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