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.
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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