Issue Date: 
Monday, April 14, 2014

Tenders and Joint Ventures

By Werner van Rooyen

www.how2tender.com

14 April 2014

Do not under estimate the power of Joint Ventures because many tenders have been awarded to Joint Ventures and many more tenders will be awarded to Joint Ventures.

The advantage of having a Joint Venture when you bid for a contract is that you combine the skills sets of the participants involved in the Joint Venture. Another advantage is that you minimize your risk and exposure towards the bid and the participants also share the profits as well as the costs in the Joint Venture.

A Joint Venture can be described as a business enterprise where two or more participants come together to share there 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 enterprises. Therefor a Joint Venture must have its own set of rules by which it is managed and this is called a Joint Venture Agreement.

A Joint Venture agreement must include some minimum rights and duties. This includes:

  • The way the profit or loss will be shared by the participants;
  • The duties of each participant towards the Joint Venture;
  • The reason the Joint Venture has been established;
  • The start and end date of the Joint Venture;
  • The persons who will be the representatives of the Joint Venture;

If you want a copy of a Standard Joint Venture Agreement visit our website www.how2tender.com, where you can buy a JV Agreement online. When it comes to tenders in South Africa, you must remember to include your duly signed Joint Venture Agreement in your proposal. If you do not comply with this rule, your tender can be disqualified.

Another very important thing to remember, when bidding through a Joint Venture, is to include a consolidated B-BBEE certificate. This means that you will have to obtain a new B-BBEE certificate for the Joint Venture which consolidates each participant`s B-BBEE status level.

Remember then if you want to bid for a specific tender and you do not possess all the necessary skills, recourses, infrastructure or capital you can always look for partners who can join forces with you through Joint Ventures. Joint Ventures can bring you the success you always wanted without being trapped in a never ending partnership or shareholding scenario.

Please visit our website at www.how2tender.com to find out more about Joint Ventures and the Tender Process. Our second edition of our Tender Manual: A practical guide on how to tender is now available.
Until the next time - happy tendering.

Don`t delay, get educated today!

Title Closing Date Tender No.
Sound and Lighting: Live Gospel Show 24 November 2018 2018-11-21 12:00 B346/2018/19
Backfill and reinstatements of trenches & other excavations in existing roads and other paved surfaces in ward 2 2018-11-27 12:00 213/2018/19
Backfill and reinstatements of trenches & other excavations in existing roads and other paved surfaces in ward 6 2018-11-27 11:00 RFQ214/2018/19
Supply and Install Air Conditioners at Tshepong Laboratory 2018-12-12 10:30 RFQ NO: 1464133
Backfill and reinstatements of trenches & other excavations in existing roads and other paved surfaces in ward 9 2018-11-27 12:00 215/2018/19
Renovations to Wf Knobel NHLS Laboratory in Limpopo 2018-12-13 11:00 RFQ NO: 1339393
Backfill and reinstatements of trenches & other excavations in existing roads and other paved surfaces in ward 10 2018-11-27 12:00 216/2018/19
Call for Auctioneers to submit quotations for providing service to auction redundant and obsolete inventory and movable assets on behalf of Knysna Municipality 2018-11-27 12:00 190/2018/19
Render a Cleaning Service at the Premises of the Metro North Education District (Mned) Office, Situated at 9 Timmerman Street, Parow for a period of two (2) years, starting from 1 April 2019 to 31 March 2021. 2018-12-14 11:00 B/WCED 2473/18
On-site Auditing, application of Grading System to and Training of 349 Clubs through Club Development Toolkit 2018-12-18 11:00 ZNB: DSR43/ 1819
Provision of Short Term Insurance Services in SIU for a period of 60 months. 2018-12-14 11:00 RFP: 005/ 11/ 2018
Appointment of a Service Provider to provide an Internal Audit Services on a co-sourced basis for a period of Three (3) years 2018-12-07 12:00 RFP/ T 08- 2018/ 19
Appointment of a maximum of four (4) Media Agents to provide media buying (including print, radio, television and online media) and related services to the NRF SAASTA for a period of thirty six (36) months 2018-12-14 11:00 NRF/ SAASTA/ 02/ 2018- 2019
Supply of Integrated Competency Assessment services to SITA for a period of 36 months 2018-12-07 11:00 RFB 1841/ 2018
Provision and Implementation of Integrated Management Information System to Support SASSETA Core Business 2018-11-30 11:00 RFP/ SASSETA/ 201819128
Installation, Configuration maintenance of PABX and Call Centre Management Solution for a period of 12 months with the option to renew 2018-12-10 11:00 RFP/ SASSETA/ 201819129
Supply, Delivery, Installation and Configuration of Firewall and Switches on an outright purchase or rental basis (Managed) and maintenance thereof for a period of 12 months with the option to renew 2018-12-10 11:00 RFP/ SASSETA/ 201819130
Provision of Telecommunication and Internet Services for a period of 12 Months with the option to renew 2018-12-10 11:00 RFP/ SASSETA/ 201819125
Appointment of a service provider for the evaluation, due diligence and monitoring of Discretionary Grants until 31st March 2019 2018-12-10 10:00 RFP/ SASSETA/ 201819127/ 1
The rendering, manufacturing, repairing, fitting and supplying of aids for orthotic and prosthetic services to institutions in the Eden and Central Karoo District under Western Cape Government the Department of Health for a three year period 2018-12-07 11:00 WCGHCC031/ 1/ 2018

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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
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