Issue Date: 
Thursday, October 31, 2019

Reasons why Joint Ventures fail

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

There are many reasons why Joint Ventures fail and five of the most common reasons are:

  1. Lack of a proper Joint Venture Agreement.  The importance of a proper JV Agreement cannot be emphasized enough.  Ensure that you have a proper contract in place that covers the entire foundation of your JV.
  2. Lack of finance.  If one of the parties to the Joint Venture is struggling financially it can be the downfall.  The simple reason is that the struggling partner will drain the Joint Venture, not allowing the it to build up capital for challenging times or future expansions.
  3. Control issues.  In any relationship you will always find that someone needs to be the leader or the decision maker.  A Joint Venture is the same – somebody needs to be in control.  Ensure that the correct leadership is appointed.
  4. Compatibility.  Sometimes in the rush of securing a tender a business owner will go into a Joint Venture with another business owner who does not have the same values and ethics.  This is a dangerous mistake.  Remember that you have established a certain way of doing business and that you have invested a lot in building the ethics in your business.  Ensure that the Joint Venture partner that you sign up with is compatible with your policies of running a business.
  5. Unrealistic expectations.  Ensure that all role players are on the same page when it comes to the Joint Venture’s successes.  There must be clear indicators on the chances of winning a tender as well as the expected profits to be made after the awarding of a tender and the completion of the tender.  All the parties involved must be briefed on the expected profits so that there are no unrealistic expectations from any of the parties involved.

If you tend to these five critical areas in your Joint Venture the chance for it to succeed will increase immensely.

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.
Servicing of 164 fire hose reels and 76 fire hydrants at Sandf Wonderboom Military Base 2021-10-05 11:00 ID 94092
Supply and delivery of 5mw rectifier. 2021-10-19 10:00 CRAC-ELF-36462
Supply and delivery of 5mw rectifier. 2021-10-19 10:00 CRAC-ELF-36462
The Upgrade Of District Road 1880 From KM 5.000 To KM 9.009 and Local Road 3620 From KM 0.000 To KM 2.907 in the Empangeni Region 2021-11-02 11:00 ZNB00379/00000/00/HOD/INF/21/T
Supply and delivery of tractor 2021-10-27 12:00 27/09/2021
Appointment of a Service Provider to render Water Treatment Services and Supply Chemicals at iThemba LABS, Cape Town for a period of Thirty-three (33) Months 2021-10-04 11:00 iLABS/RFP2021/22:13
Contractor appointment for alpha apron sprinkler pipe replacement at King Shaka International Airport 2021-10-29 11:00 DIA6716/2021/RFP
TENDER MN 97/2021 Panel of contractors for fencing installations for Kwadukuza Municipality for period of 3 years ref advert on KDM webpage 2021-11-01 12:00 MN 97-2021
Refurbishment of Blythedale Beach life savers tower ref advert attached for full details and enquiries 2021-10-15 12:00 MN 78/2021
Invitation to tender for lease of Eskom owned residential properties located in the Eastern Cape Kouga Municipal district 2021-10-18 10:00 IRP308
Appointment of a Service Provider to perform actuarial valuations, build and transfer actuarial model for a period 36 months. 2021-10-25 11:00 TCF 16 2021/22
Provision for deep cleaning services for a period of 12 months 2021-09-30 13:00 EWSETA/RFQ/054/2021
Appointment of a suitable service provider for the supply and delivery of 129 laptop computers for the Free State Community Education and Training College 2021-10-25 11:00 RFT02/2021
Supply And Delivery Of Asphalt Bags 2021-10-29 12:00 TDR225/2021/2022
Supply And Delivery Of Butterfly And Dual Plate Check Valves 2021-10-29 12:00 TDR231/2021/2022
Fiber Connectivity For Internet Bandwith And Mpls Vpn Service Connection For The Joint Operations And Disaster Management Centre 2021-10-29 12:00 TDR242/2021/2022
Painting of The Multimedia Filters at The Mossel Bay Desalination Plant 2021-10-22 12:00 TDR244/2021/2022
Leasing Of The Tolhuis Together With The Adjacent Building On A Portion Of Erf 1001, Ceres 2021-10-14 12:00 08/2/19/12
Periodic Maintenance, General Repairs And Provision Of Spare Parts For Sweeper 2021-09-30 12:00 08/2/19/03
Provision of internal audit services for a period of 3 years 2021-10-18 11:00 RFP 06/2021

Pages

Who is the bidder or his or her representative?

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

In Organ of State tenders, the Standard Bidding Document 4 – Declaration of Inters – ask in paragraph 2.1 the following: “Full name of bidder or his or her representative... 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.