Issue Date: 
Monday, April 14, 2014

Tenders and Joint Ventures

By Werner van Rooyen

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, 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 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.
Service of a Consulting Engineer for the re-design and reconfiguration of the MV Equipment Protection Setting at the 11KV Network at OR Tambo Internationl Airport and update the "As-Build Drawings" 2018-10-10 10:00 Rec 60339
Supply & delivery of road traffic signs & consumables 2018-09-27 10:00 DIC0026016
Appointment of a contractor for the construction of 22km 9 strand boundary fence, 32km 6 strand internal fencing, construction of a cattle handling facility and siting, drilling and equipping of two boreholes in Zaaihoek Farm situated in Thembisile Hani Local Municipality at Nkangala District Municipality. 2018-10-10 11:00 CONMP0002 (2018/2019)
Appointment of a contractor for the construction of 44km 9 strand barbed wire fencing, supply and delivery of 56km 9 strand barbed wire fencing, construction of two cattle handling facilities with a spray race and siting; drilling and equipping of 12 boreholes in various villages in Dr J S Moroka Local Municipality in Mpumalanga Province. 2018-10-10 11:00 CONMP 0003 (2018/2019)
Supply & delivery of high back & visitors chairs 2018-09-27 10:00 DCG0011620 & DCG0011621
Panel of professional civil and structural engineers. 2018-10-10 12:00 37/2018
Supply & delivery of all weather mens jackets & extreme slip safety boot 2018-09-27 10:00 DSC0019753
Panel of professionals (electrical engineers on turnkey basis). 2018-10-10 12:00 38/2018
The University of South Africa invites tenders from suitably qualified service providers to provide the University with professional electrical engineering services for the Sunnyside development design and project management 2018-10-03 12:00 PT2018/I8
Invitation for proposals to provide catering and decor services for the Department's Head of Mission Conference which will take place from 19 to 25 October 2018 at Department of International Relations and Cooperation, Pretoria, Gauteng. 2018-10-12 11:00 DIRCO 04/2018/19
Supply and deliver male torso mannequin with black jersey cover, metal base and metal neckpiece. 2018-09-25 11:00 GQ09181944
As and when supply and delivery of various CSR Casting items for 1064 project, to RSE Business Transnet engineering, Koedoespoort. 2018-10-16 10:00 TE18-KDS-8GS-06060
Surfacing of Lusikisiki Internal Streets Phase 2. 2018-10-16 12:00 IHLM/19/08/2018-19/TS
Painting of palisade fencing at Ezamokuhle 1, Ezamokuhle 2, Grootdraai and Kendal ambient air quality sites using Cowrie Gold Colour Powder Coating Paint. 2018-11-01 10:00 ERIC1107
Supply and delivery of laboratory chemicals, reagents, glassware and consumables as and when required for a period of five (5) years. 2018-10-31 10:00 ERIC0588
Detail design, procurement, transport to site and installation and commissioning of Induced Draught Fan at Tutuka Power Station. 2018-10-06 10:00 pscesd0095R
Provision of Facility Management Services to Eskom Real Estate in the Free State Operating Unit for 3 years (NONE TECHNICAL) Cleaning & Gardening. 2018-11-15 10:00 MdB18/24
Supply, Installation and Maintenance of an Integrated Telecommunications Solution for Sol Plaatje Municipality on a 36 Month Rental Contract. 2018-10-22 11:00 FIN/IT02/2018
Provision of learner ship programme to Eskom employees for the period of 12 months on "as and when required" basis. 2018-10-18 10:00 CORP 4518
Provision of Facility Management Services to Eskom Real Estate. 2018-10-08 10:00 MdB18/23


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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