Sub-contractors versus Consortiums and Joint Ventures

5 reasons why Joint Ventures fail

Joint ventures are collaborative arrangements where two or more businesses decide to collaborate for a common purpose such as bidding for a tender.

There are many examples of successful Joint Ventures, such as  Sony-Ericsson, Virgin Mobile India Limited, Nokia (Siemens AG and Nokia Corp), Cadbury Schweppes PLC Carlyle Group Joint Venture and Chery Jaguar Land Rover Automotive Company. They  are all well-known and are very lucrative. But having a Joint Venture does not guarantee success.

5 rules to remember when bidding through a Joint Venture

By Werner van Rooyen

5 October 2015

If you want to bid for a specific tender and do not have all the necessary skills, recourses, infrastructure or capital you can always look for partners with whom you can join forces through Joint Ventures. A JV can bring you the success you want without being trapped in a never ending partnership or shareholding scenario.

Joint Ventures - important tool in the Tender Process

By Werner van Rooyen

14 September 2015

On 1 May 2015 the Amended B-BBEE Codes of Good Practice came into effect. These Amended Codes have a major impact on the B-BBEE Scores of all businesses that participate in B-BBEE in South Africa. The bottom line is that the B-BBEE scoring levels have changed drastically. If a company does not have any sort of Black Ownership it is going to be very difficult to achieve a decent B-BBEE Score.

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.

8 things you must know about Joint Ventures

By Werner van Rooyen

6 October 2014

One of the most popular types of business arrangements that are being used by South Africans, in the Tender environment, is Joint Ventures. There are eight things that you must know about Joint Ventures:

  1. Definition

A Joint Venture is a strategic cooperation where two or more people and/or companies agree to contribute goods, services and/or capital to a common commercial enterprise for the purpose of a specific tender or request for proposal.

10 Strategies to apply for Joint Ventures Partners

By W van Rooyen 

10 November 2014

Joint Ventures can be very lucrative business relationships. In previous articles about Joint Ventures we have talked about the eight things you must know about Joint Ventures as well as how Tenders and Joint Ventures work.

Today we concentrate on the ten strategies that any entrepreneur should apply when choosing Joint Ventures partners.

10 features of a good Joint Venture Agreement

By W van Rooyen

19 January 2015

A Joint Venture is a good business idea to compete for tenders if one does not have all the necessary expertise that are required for a specific tender. The thing to remember though is that you must have a solid Joint Venture Agreement in place for your Joint Venture. A good, rock solid Joint Venture Agreement will protect the participants to the Joint Venture.

Consortiums versus Joint Ventures

By Werner van Rooyen

16 March 2015

It is common business practice to form a Joint Venture when one responds to a tender, especially if you do not have all the expertise required for the specific tender. But Joint Ventures can be complicated to form and to find the correct partner for the Joint Venture can be challenging. There is an alternative option. You could go into a consortium when responding to a tender.


Title Closing Date Tender No.
Supply and Deliver Electrical Equipment 2017-08-25 11:00 GQ08171532
Supply: Auto darkening helmet - welding 2017-08-24 10:00 R011800151
EXCEL ENERGY DRINK (10 X 1KG PER BOX) 2017-08-25 11:00 ZNQ 278/ 17/ 18
Supply and deliver 22kv / 400 Amp Pole Mounted Rocking Type Air Break Switch 2017-08-25 11:00 GQ08171532
Supply circular chart recorder dr4312-00 2017-08-28 12:00 W041800162
AQUACEL AG EXTRA 15X15 5PCS PER BOX 2017-08-25 11:00 ZNQ 231/ 17/ 18
Supply and deliver: 1. Minor service of refrigerators and freezers x2; 2. Minor service to air-conditioners at Gingindlovu Clinic x6 2017-09-05 11:00 ZNQ 71/ 17- 18
Supply and Deliver Diesel Driven Mobile Compressor 2017-08-24 11:00 GQ08171534
Supply: 63mm whitefire hoses 2017-08-25 10:00 R011800152
Supply and Fit Engine Protection Guards 2017-08-24 11:00 CSQ08171076
Supply: Fencing wire 2017-08-23 14:00 A021800246
1. Servicing of the John Deere engine in the fire booster pump station x1 2017-09-05 11:00 ZNQ 110/ 17- 18
Supply and fit 12V Winch Intergrated into Bumper 2017-08-24 11:00 CSQ08171076
1. Service to bed pan sterilizer x2 2017-09-05 11:00 ZNQ 112/ 17- 18
Supply and fit OFF-ROAD Wrap Around Front BUMPER Replacement 2017-08-24 11:00 CSQ08171076
General Maintenance of wooden viewing platforms at Blaauwberg Nature Reserve 2017-09-01 09:00 W081800012
Compressor Unit for Compressing Air and Breathing Air complete 2017-08-30 10:00 R011800153
Rendering for Media Monitoring Services 2017-08-24 11:00 CSQ08171079


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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