Issue Date: 
Thursday, October 31, 2019

The difference between Consortiums and Joint Ventures

By Werner van Rooyen, Director of HowToTender (Pty) Ltd which specializes in tender consulting and tender training.

It is common business practice to form a Joint Venture when one responds 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 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 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 attend our “Become a Tender Expert” 2-Day workshops presented in Johannesburg, Pretoria, Durban, Port Elizabeth, and Cape Town.  Book and pay online at https://howtotender.co.za/tender-expert-form/

Contact us at wernervr@howtotender.co.za should you require more information.

You can also purchase a Tender Manual (Handbook) on our website https://howtotender.co.za/ which is a step by step guide how to respond to a South African Tender.  It includes examples of completed SBD forms.

Title Closing Date Tender No.
Manufacturing, Supply and Delivery of Socks Drab, Socks, Grey, Cushion Sole, Socks, Grey, Half Hose and Socks Black for a Period Of Two (2) Years: Division: Supply Chain Management 2020-02-26 11:00 19/ 1/ 9/ 1/ 29TC (19):
Western Cape Provincial Treasury is inviting bidders from registered Tertiary Higher Education Institutions to provide training and capacity building to the Western Cape Municipalities and relevant Western Cape Government officials for the period of three (3) years envisaged to commence from 01 April 2020 to 31 March 2023 with an option to extend for 12 moths 2020-02-14 11:00 WCPT 04/ 2019/ 20
Panel of Contractors for Preventative and Day to Day Maintenance of Standby Generators in State Building for 24 Months in Mopani Area. Bidders should have a CIDB contractor grading designation of 4 EB or higher. 2020-02-18 11:00 PLK20/ 07
SANRAL Northern Region : Design and Construction 2020-03-02 14:00 SANRAL R.037- 020- 2019/ 1
Rendering of Security Services for period of 36 months at Department Of Employment & Labour : Provincial: Office : Emalahleni. 2020-02-14 11:00 Q58051631
Print, label, pack and distribute 192 100 English and 126 200 Afrikaans family numeracy manuals for grade 4 parents/guardians over a 3 year contract from February 2020 to January 2022. 2020-02-21 11:00 B/ WCED 2702/ 19
The Appointment of the the Service Provider to Provide Support and Maintenance of SAP Business One to Public Protector South Africa for a period of three (03) years 2020-02-21 11:00 PPSA 008/ 2019
Technology Innovation Agency E-Evidence Management System. 2020-02-28 11:00 TIA001/ 2020
Transportation of learners for the following routes in the Cape Winelands District 2020-02-28 11:00 VARIOUS
Leasing of Hardware with Maintenance and Support for SITA for a period of three (3) years 2020-02-14 11:00 RFB 2058/ 2019
Transportation of learners for the following routes in the West Coast District & in the Eden and Central Karoo 2020-02-14 11:00 VARIOUS
Request of approval for the sourcing of a service provider to deliver Cleaning and Hygiene services to SITA Eastern Cape buildings for a period of 36 Months 2020-02-14 11:00 RFB 2046/ 2019
Appointment of a Service Provider For Kwelera National Botanical Garden, East London: New Boundary Fence 2020-02-21 11:00 SANBI: G361/ 2020
South African Local Government Association (Salga). Appointment of a Service Provider to Measure The Extent to Which Asset Maintenance Is Deferred By Municipalities, The Implications and Impact On Municipal Governance 2020-02-24 11:00 SALGA/ 82/ 2020
Refurbishment of a Residential Dwelling for the SA Navy at 20 Lloyd Avenue, Bluff, Durban, Kwazulu-Natal as per Scope of Work. CIDB GB Grading 3. Validity 120 days. Evaluation against 80/20 principal 2020-02-21 11:00 SPSC- B- 031- 2019
Erection of Carports at (J TAC HQ EC) Maluti Borderline Base as per Scope of Work. Validity 120 days. Evaluation against 80/20 principal 2020-02-20 11:00 SPSC- B- 029- 2019
The RAF hereby invites experienced, suitably qualified service providers for a Panel of Forensics for a period of five (5) years 2020-02-26 11:00 RAF/ 2020/ 00002
Upgrade of the Automotive Fuel Dispensing Facilities complete with ancillary equipment and associated works for the SA ARMY at 9 South African Infantry Battalion as per Scope of Work. Validity 120 days. Evaluation against 80/20 principal 2020-03-03 11:00 SPSC- B- 030- 2019
The RAF hereby invites experienced, suitably qualified service providers for Enterprise Project Portfolio Management (Microsoft Project Server) Solution for a period of five (5) years 2020-02-24 11:00 RAF/ 2020/ 00001
The RAF hereby invites experienced, suitably qualified service providers to configure and implement Microsoft Dynamics 365 Workflows 2020-02-21 11:00 RAF/ 2019/ 00025

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