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.
Supply and deliver 30 First Aid Kits 2017-12-19 11:00 GQ12171660
Atlantis Swimming Pool: Repair & service of pumps, motors & gauges. 2017-12-20 09:00 SB11800514
Supply and deliver Wire Aluminium binding wire 4mm 2017-12-19 11:00 SQ12171150
Supply Polymer grids, covers and frames 2017-12-19 15:00 GE11800873
Supply and deliver VALVES 100MM SPIGOT ENDED left hand closing with non rising spindle fitted,CAST IRON wedge gate EPOXY coated,to SPECS CLASS 16(S.A.B.S. 664) 2017-12-19 11:00 SQ12171150
Supply Civil materials 2017-12-14 14:00 GE11800874
Supply: Polymer covers and frames 2017-12-19 14:00 GE11800872
Supply and deliver Tinned Wire Copper 2.0mm,fusewire in 500gram rolls 2017-12-19 11:00 SQ12171150
Supply Sheet metal 2017-12-14 14:00 GE11800871
Supply and deliver Ball Markers Type 1401 (MOQ24).Colour RED only 2017-12-19 11:00 SQ12171150
Supply Clamps 2017-12-19 14:00 GE11800869
Supply Water distribution materials 2017-12-19 14:00 GE11800870
Supply and deliver Joint Troughs c/w Fibre Lid cement flame resistant 2017-12-19 11:00 SQ12171151
Supply: Water distribution materials 2017-12-18 14:00 GE11800868
Supply: Water distribution materials 2017-12-18 14:00 GE11800867
Supply Sand 2017-12-14 14:00 GE11800866
Supply and installation of sluice gates with solid ACME thread spindles to be manufactured usind 316 s/steel plates 6mm thick spindles and guides to be of the same 316 s/steel material 2017-12-19 11:00 CSQ12171197
Printing of Municipal Tabloid 2017-12-19 11:00 CSQ12171197
Supply manhole lock 2017-12-18 14:00 GE11800865
Supply Building material 2017-12-14 14:00 GE11800864

Pages

Functionality and Tenders

In all competitive bids (tenders) you as the bidder will have to respond to Functionality. You will need to score a set minimum number of points, measured as a percentage, on Functionality of a competitive bid (tender) in order to advance to the next phase of evaluation in the tender process.

Usually Organs of State evaluate competitive bids (tenders) as follows:

  • The tender response is evaluated on Functionality where the bidder must score points out of a maximum of 100 points.
  • A threshold of between 65 to 75 out of 100 points... Read More
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