Issue Date: 
Monday, September 14, 2015

Joint Ventures - Important Tool in the Tender Process

On 1 May 2015 the Amended B-BBEE Codes of Good Practice came into effect. These Amended Codes will have a major impact on the B-BBEE Scores of all businesses that participate in B-BBEE in South Africa. The fact of the matter is that the B-BBEE scoring levels have changed drastically. If a company does not have any sort of Black Ownership it is going to be very difficult to achieve a decent B-BBEE Score.

In the Amended B-BBEE Codes of Good Practice the Ownership Element Score has been adjusted from 20 points to 25 points. It is widely accepted that on the "old Codes" a good B-BBEE score was between 65 to 75 points. Businesses that achieved such a score usually got a Level Four B-BBE Score which in turn meant that these businesses had a 100% Procurement Recognition Level. A Level Four Procurement Recognition Level was great and everybody was happy.

The problem is that due to new concepts in the Amended B-BBEE Codes such as Priority Elements and higher scoring levels, it will become a challenge to reach the same recognitions levels as in the past. This is where Joint Ventures will play a major role in ensuring that good B-BBEE Scores can be achieved by businesses.

One of the most important instances where B-BBEE Scores are of utmost importance is in the tender process. It is common knowledge that the better the B-BBEE Score, the better your chances of winning a tender. Government Entities must use the Preferential Procurement Point System (either the 80/20 or 90/10 system) to calculate which tender response will be awarded the tender - if you do not have a good B-BBEE Score and if it is a close race, you are going to lose out with a low B-BBEE Score.

Keeping all the above in mind, Joint Ventures can be a great tool to use to increase B-BBEE Scores. Remember that when you tender through a Joint Venture you must submit a Consolidated Joint Venture B-BBEE Certificate. If you have the correct Joint Venture partner, with a good B-BBEE score, the overall score that you will achieve in the Preferential Procurement Point System can be much higher than going into the tender alone.

How2Tender's workshops provide much insight into Joint Ventures and much more. Please visit our website for more details www.how2tender.com or email estelle@how2tender.com should need any assistance in this regard.

Title Closing Date Tender No.
Appointment of a Professional Consulting Engineer For Planning, Design and Project Management: Refurbishment and Upgrading of Kameelmond Wastewater Treatment Works 2018-10-19 14:00 TN078/2018
Supply and delivery of fittings for MIG water meters project- Brandfort. 2018-09-26 12:00 2018/09/002
Supply and delivery of fittings for MIG water meters project- Winburg. 2018-09-26 12:00 2018/09/004
Supply and delivery of 4 core cables. 2018-09-26 12:00 13/09/2018
Quotation for 3x computer monitors, 3 laptops. 2018-09-26 11:00 KCDM/QUOTE/31/2018
Design, planning and project management of a steel structure with rooftop for the Dawid Kruiper Municipality 2018-10-12 14:00 TN078/2018
Development of an app & social media Platforms. 2018-09-26 11:00 C2/2018
Supply and delivery of digital camera and video camera. 2018-09-25 12:00 IHLM-46/09/2018-19/CS
Supply and delivery of chemicals 2018-09-25 12:00 Q005826
Supply and delivery of dry beans for led projects. 2018-09-25 12:00 Q005828
Supply and delivery of Geopositinal System (GPS) devices. 2018-09-25 12:00 Q005865
Supply and delivery of tools: Electrical Department 2018-09-27 11:00 FQ/SM : 2/19
Area East Career Expo Catering 2018- Exhibitors 2018-09-25 10:00 SM11900107
Supply, delivery and installation of a water flow meter system 2018-10-02 11:00 FQ/SM : 25/19
Consultant required to provide Monitoring, Evaluation, Accountability and Learning (MEAL) technical support to SCSA projects in Gauteng Province 2018-10-04 16:00 No reference number supplied
Supply of Services to Repair Traffic Signals and Associated Equipment within the Breede Valley Municipality 2018-09-27 11:00 288145
Consultancy services for SAP grant management implementation support 2018-10-05 15:00 ET-AUC-78675-CS-QCBS
Supply and Delivery of VBTS Collimator Insulating Piece. 2018-09-25 11:00 Themba LABS – RFQ/2018/19:84
Supply, delivery and Laying of Tiles 2018-09-28 11:00 280918
Procurement of Bus Services for Spring Schools – 4 x 30 Seater Buses. 2018-09-25 11:00 iThemba LABS – RFQ/2018/19:92

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
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.