Issue Date: 
Thursday, October 31, 2019

Types of Joint Ventures    

By Werner van Rooyen, Director of HowToTender (Pty) Ltd which specializes in tender consulting and tender training.

The structure of the joint venture should set out the nature of your partnership.  There are two main types of agreements:

  1. If the joint venture is a business, it will be an incorporated joint venture.  This type is not recommended when one wants to respond to a competitive bid or a request for quotation.
  2. A co-operative arrangement between two existing parties that keep their separate identities is called a contractual joint venture.  This type of joint venture is the safest option to use in responding ton tenders.

In both types mentioned above a Joint Venture Agreement (JVA) is crucial in managing the joint venture.

The joint venture agreement should include:

  • Objectives: keep it simple and try to have no more than five objectives.
  • Funding: both parties need to specify how much funding they will put into the venture, and for how long.
  • Assets: list any assets or employees that will be transferred throughout the duration of the joint venture.
  • Intellectual property: state who owns any intellectual property created during the joint venture and how any financial benefits will be distributed.
  • Roles: clearly indicate who has responsibility for the processes involved during the joint venture.  If you are setting up a new company, the composition of the Board – e.g. Chief Executive and Chief Financial Officer - should be identified and voting rights agreed.
  • Agreement: incorporated joint venture agreements may also need to include a shareholders’ agreement, covering issues such as dividend policy and how the management accounts will be produced and made available.
  • Third parties: any consents or approvals needed from third parties should be explained in the agreement.
  • Finances: state how any profits or losses will be divided between parties.  Liabilities must also be clearly listed.
  • Disputes: specify a mechanism by which any disputes can be resolved, such as arbitration by an agreed third party.
  • Duration: specify how long the joint venture would last.  If it is open-ended the agreement should state the period of notice that each party should give if they want to withdraw.
  • Confidentiality: you may wish to consider a confidentiality or non-disclosure agreement.
  • Principles: include a statement that is not legally binding on the two parties.  Instead it should be a statement of principles – enabling the parties to negotiate a final, legally definitive agreement in good faith.

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.
The identification of premises for office space for the NDA to be occupied over a period of five years in the following areas: Eastern Cape (Queenstown) and Mpumalanga (Hazyview) 2020-02-17 14:00 NDA39/ FIN01/ 20
Terms of Reference to Request for Bids From Service Providers for BID NO OCJ2019/06: Re-Advertisement of the Anti-Virus and Malware Protection Solution for the Office of the Chief Justice 2020-02-07 11:00 OCJ2019/ 06
The RAF hereby invites experienced, suitably qualified service providers to provide Research Services for the RAF for the period of five (5) years 2020-02-21 11:00 RAF/ 2019/ 00027
Sekgosese Magistrate Court: Repairs and Renovations 2020-02-18 11:00 PLK 20/ 02
Appointment of service provider for e-mail continuity, archiving and spam filtering services (unified email management solutions) for a period of five (5) years. 2020-02-14 11:00 HSRC/ 13/ 2019/ 20
iSimangaliso Wetland Park Authority, a schedule 3A public entity invites suitably qualified service providers to bid for construction and rehabilitation of roads situated in the Maphelane section of the iSimangaliso Wetland Park, Kwa-Zulu Natal 2020-02-14 16:00 RFP NUMBER: 15/ 2019
Office Accommodation for the merSETA Western Cape Regional Office – FAC/2020/004 The primary objective of this request for proposal is to invite landlords and agencies to submit proposals to the merSETA to provide leasing of Office Accommodation for Western Cape Regional Office for a period of five (5) years. 2020-02-06 12:00 FAC/ 2020/ 004
The objective of the bid is to appoint External Moderator(s) Nationally to form part of a panel that will provide the verification of Learning Programmes and Workplace Approvals for FoodBev SETA on a rotational basis for a period not exceeding three (3) years from date of appointment. 2020-02-24 11:00 FB SETA (19- 20) T0022
Office Accommodation for the merSETA Gauteng North Regional Office – FAC/2020/002 The primary objective of this request for proposal is to invite landlords and agencies to submit proposals to the merSETA to provide leasing of Office Accommodation for Gauteng North Regional Office for a period of five (5) years. 2020-02-06 12:00 FAC/ 2020/ 002
Office Accommodation for the merSETA Mpumalanga Regional Office – FAC/2020/003 The primary objective of this request for proposal is to invite landlords and agencies to submit proposals to the merSETA to provide leasing of Office Accommodation for Mpumalanga Regional Office for a period of five (5) years 2020-02-06 12:00 FAC/ 2020/ 003
FoodBev SETA would like to invite a suitable service provider to project manage the recruitment and placement of 2017/2018 learners in workplace within the Food and Beverages Manufacturing Sector and/or Government department (National, provincial, local). 2020-02-25 11:00 FB SETA (19- 20) T0023
Office Accommodation for the merSETA Eastern Cape Regional Office – FAC/2020/001 The primary objective of this request for proposal is to invite landlords and agencies to submit proposals to the merSETA to provide leasing of Office Accommodation for Eastern Cape Regional Office for a period of five (5) years. 2020-02-06 12:00 FAC/ 2020/ 001
Appointment of a Well-Established Service Provider for the Provision Of Cafés / Restaurants, Shops, Outdoor Weekend Recreational Activities (Such as a Market) 2020-02-14 11:00 DMSA 014/ 2019
Appointment of a panel of service providers to assist with sighting, drilling, testing & equipping of boreholes in the Ngaka Modiri Molema District Municipality of the North West Province 2020-02-06 11:00 NW- TEN02(011)19/ 20
Appointment of a Well-Established Service Provider for the Provision Of Cafés / Restaurants, Shops, Outdoor Weekend Recreational Activities (Such as a Market) 2020-02-14 11:00 DMSA 014/ 2019
Port Alfred: Department of Agriculture, Forestry & Fisheries: 8 William Cock Street: Repairs & Renovations. 2020-02-18 11:00 PE01/ 2020
Appointment of a panel of service providers to assist with sighting, drilling, testing & equipping of boreholes in Bojanala District Municipality of the North West Province 2020-02-06 11:00 NW- TEN02(013)19/ 20
Department of Agriculture: Paulpietersburg: Construction of new District office 2020-02-21 11:00 ZNTU 01858 W
Replacement of fence at Nkunzana Clinic, Pongola 2020-02-21 11:00 ZNTU 04233 W
Once Off Supply, Delivery and Installation of Office Furniture for the Pietermaritzburg Deeds Registry. 2020-02-17 11:00 DRDLR (CRD- 07) 2019/ 20

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