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.
Security Service at Emmasdal Child and Youth Care Centre 2020-11-13 11:00 GT/ GDSD/ 052/ 2020
Appointment of service provider to assist the Department of Small Business Development with conducting a longitudinal study on SMMEs and Co-operatives within South Africa covering the period 2021-2024 2020-11-20 11:00 DSBD Research 002/ 2020
DPW : DMRS : DOD Lenasia : Lenz Miltary Base : Replacement and Ugrade of Civil Engineering Services 2020-11-12 11:00 JHB 20/ 04
Appointment of a Panel of Attorneys to Render Debt Management Services to the Department Of Health For A Period Of 3 Year Adhoc Contract. 2020-11-16 11:00 ZNB 5128/ 2020- H
Supply, Delivery, Installation and Commissioning of Horizontal Bedhead system services for Dora Nginza Regional Hospital 2020-11-20 11:00 SCMU3- 20/ 21- 0181- DNG
Request for proposals for the supply and delivery of mobile communication services to the state for a period of 60 months (5 years) 2020-11-27 11:00 RT15
Virkons Disinfectant (10 kg x 5) 2020-11-06 11:00 RFQ 000412
Supply and deliver of concrete ready mix concrete at Mzimvubu water project – access road for construction east near Maclear in the Eastern Cape Province for a period of 12 months 2020-11-20 11:00 DWS12- 1020 WTE
Procurement of 11,5 % sodium hypochlorite (Must be in blue cans) 10 x 25 litres 2020-11-06 11:00 RFQ 000411
Appointment of a Service Provider to repair the roof & infrastructure for the Hamburg Aquaculture Project facility, situated in Hamburg, Eastern Cape. Repair infrastructure for the following: Office space; Boardroom; Laboratory; Aquaculture products packing room and Ablution facilities 2020-11-06 11:00 RFQ 000410
Hach DR 6000 spectrophotometer annual calibration, servicing and repairs (currently switches on but does not allow for testing).; Hach DR 900 colorimeter annual calibration and servicing x2; Hach HQ40D probe annual calibration and servicing x 2; Hach LDO rugged probe annual calibration, servicing and replacement sensor; Hach pH rugged probe annual calibration and servicing; Hach CDC410 laboratory probe annual calibration and servicing; Hach pH/ Conductivity Pocket Pro 2 annual calibration, servicing and replacement sensor; Hach Conductivity Pocket Pro annual calibration, servicing and replacement sensor 2020-11-06 11:00 RFQ 000409
Appointment of a service provider to procure maintenance tools and accessories for the South African Nursing Council. 2020-11-11 11:30 RFQ 41/2020
To Appoint The Suitable Service Provider To Render Project Management Services to the Department Of Environment, Forest and Fisheries to Remove And/Or Clear Illegal Dumping and Cleaning Streets In Matjhabeng Local Municipality Over A Period Of Twenty Four (24) Months. 2020-11-13 11:00 E 1582
Supply & delivery of cleaning material to National dept of Public Works & Infrastructure, Cape Town Regional Office ( 24 months) 2020-11-13 11:00 CPTSC14/ 20
24 months term contract: Supply and delivery of toilet paper and hand paper towels 2020-11-13 11:00 CPTSC 15/ 20
To Appoint The Suitable Service Provider to Render Project Management Services to the Department of Environment, Forest and Fisheries to Remove and/Or Clear Illegal Dumping and Cleaning Streets in Mangaung Metropolitan Municipality Over a Period Of Twenty-Four (24) Months 2020-11-13 11:00 E 1583
To Appoint The Suitable Service Provider To Render Project Management For The Procurement of Equipment for The Thaba-Nchu Buy-Back Centre and Transfer Station; Botshabelo and Chris Hani Buy–Back Centres and to Train and Support The Existing Three (3) Waste Cooperatives and Or Non-Profit Organisations to Be Able to Operate and Manage The Thaba-Nchu; Botshabelo And Chris Hani Buy Back Centres In Mangaung Metropolitan Municipality Over a Period of Twenty-Four (24) Months. 2020-11-13 11:00 E 1584
To Appoint the Suitable Service Provider to Render Project Management Services to Train and Support Existing Waste Pickers Cooperative to be able to Operate And Manage The Buy-Back Centre At Odendaalrus In Matjhabeng Municipality Over A Period Of Twenty-Four (24) Months. 2020-11-13 11:00 E 1585
Establishment of a Panel (Database) Of Due Diligence Service Providers to Support The Implementation Of The Operation Vula 2020-11-24 11:00 ZNT 09 EDTEA 20/ 21
Outsourcing of a Contractor that will Provide Background Research, Updating , Development and Printing of Joint Doctrine in a Form of Publication and Manuals in the South African National Defence Force for a Period of Three (03)Years. 2020-11-24 11:00 CPSC- B- PC- 060- 2018RR

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

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