Issue Date: 
Monday, March 16, 2015

Consortiums Versus Joint Ventures

It is common business practice to form a Joint Venture when one respond to a tender, especially if you do not have all the expertise required by the specific tender. But Joint Ventures can be complicated to form and to find the correct partner for the Joint Venture can be challenging. There is an alternative option. You could go into a consortium when responding to a tender.

A consortium is an association of two or more individuals, companies or organisations with the objective of participating in a common activity, such as responding to a tender, or pooling their resources to achieve a common goal. Within the consortium, each participant retains their separate legal status and the consortium's control over each participant is generally limited to activities involving the joint endeavour, particularly the division of profits. A consortium is formed by contract.

A Joint Venture can be described as a business enterprise where two or more participants come together to share their expertise in order to win a specific contract for a set period of time. A Joint Venture is a separate entity and is not part of the individual participant's own enterprise. Therefor a Joint Venture must have its own set of rules by which it is managed and this is called a Joint Venture Agreement.

The key reasons to form a joint venture or consortium may be that it will provide your company with new opportunities to respond to a tender or request for proposal and secure tenders which would not otherwise be available to you due to your company's size and scale.

Before entering into either a joint venture or consortium agreement, all parties need to understand what they want from the relationship. Both joint ventures and consortiums have risks and benefits: the most important thing is to take account of what your objective is in entering into the relationship and then to weigh up which one is more appropriate to help you win a tender.

To learn more about this and many other tender conditions please attend one of our How-to-Tender workshops. For more information on the tender courses please email Werner at werner@how2tender.com

This article was written by Werner van Rooyen, Director of HowToTender (Pty) Ltd. which specializes in tender consulting and tender training.

Title Closing Date Tender No.
Appointment of professional service provider to manage restoration and invasive plant projects for 4 months: March 2019 – June 2019 2019-02-26 12:00 334/2018/19
Appointment Of A Service Provider For Supply, Delivery And Off-Loading Of Fire Tunic For City Of Mbombela For A period Of 36 Months 2019-03-05 11:00 164/2018
Supply and delivery of electrical cables for a period of three years. 2019-03-20 12:00 51/2018/19
Procurement of accommodation to support the march 2019 grade 12 SSIP Camps 2019-03-01 12:00 CS/SCM/TDU/SSIP/R18-19/37
Appointment of Three (03) Service Providers to Print, Supply and Deliver Stationery for a period of three (03) years 2019-03-20 10:00 PM104/2018
Lambani Bridge 2019-03-20 11:00 47/2018/2019
Supply and delivery of stationery and office supplies for a period of one (1) year 2019-03-06 12:00 52/2018/19
Supply and delivery of cleaning and maintenance products (highly concentrated and concentrated) for a period of one (1) year 2019-03-06 12:00 53/2018/19
Construction of Gwangwatini to Ngalavhani low-level river crossing 2019-03-25 11:00 48/2018/2019
Supply, delivery and installation of 5MVA transformer with auxiliary items at SS5 substation 2019-03-08 14:00 SCM/BID14/2018/19
Appointment of a service provider: Intabazwe / Harrismith extension 3 new surfaced roads Phase 2 2019-03-22 14:00 SCM/BID13/2018/19
Appointment of a service provider: Construction of sewer reticulation network in Namahadi 2019-03-22 14:00 SCM/BID12/2018/19
Appointment of a service provider: Upgrade of Motebang Street in Qwaqwa: 1km – Phase 1 2019-03-22 14:00 SCM/BID11/2018/19
Request for proposal to develop a market development plan for South African manufactured chemicals 2019-03-12 12:00 T03/02/19
Request for sector development and implementation plan to support sustainable veterinary pharmaceutical industry development in South Africa 2019-03-11 12:00 T02/02/19
Department of Science and Technology: Appointment of a service provider to pilot Bio-cultural Community Protocol in Mpumalanga Province 2019-03-04 13:00 RFQ-0000063
Invitation for project tenders (Phase 1): The Uniting Reformed Church Atteridgeville - Alterations and additions to existing church buildings on Erf 1088 no. 19 Matseke Street 2019-03-12 12:00 No reference supplied
Insurance for Msukaligwa Local Municipality for a period of three (3) years. 2019-03-18 11:00 8/3 27/2018
Maintenance of highmast lights: as and when required for the period ending 30 June 2019. 2019-03-18 11:00 8/3 26/2018
Repairing of open kiosk/mini-sub/ pole mounted transformers: as and when required for the period ending 30 June 2019. 2019-03-18 11:00 8/3 25/2018

Pages

8 things you must know about Joint Ventures

By Werner van Rooyen

31 January 2019

One of the most popular types of business arrangements that are being used by South Africans, in the Tender environment, is Joint Ventures.

There are eight things that you must know about Joint Ventures:

  1. Definition

A Joint Venture is a strategic cooperation where two or... Read More

Free Keyword search

Search all tender notices for FREE!

No subscription or registration required!

You can also search by the reference of the the tender.

Advanced search

Search by Issuer, Region or Sector, individually, or using any combination of the three.