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.
Dumasi Substation-Sipaqeni 132kv Feeder Bay Bypass 2018-07-25 10:00 EMG 5735
3 Year SAP Basis Support for Denel's System(Technical Support) 2018-07-25 12:00 DEN409/12/06/2018
Maintenance of gym equipment and provision of gym instruction in the Port of Saldanha for a period of 24 months 2018-07-26 10:00 TNPA SLD256/06/2018
Provision of Environmental Authorisation (EA) from the Department of Environmental Affairs (DEA) 2018-07-27 12:00 LNS/RFQ/08/2018
Provision of External Debt Collection Public Sector for a period of one (1) year 2018-07-27 11:00 SCMN003/2018
Supply and delivery of Arc flash clothing as stock items on an “ as and when” required basis for a period of three years to Kriel Power Station 2018-07-30 10:00 MPGXC005202
Provision of a Platform Supply Vessel to PetroSA 2018-07-31 16:00 CTT18758
Appointment of a Service Provider for the Travel and Accommodation Services 2018-08-03 12:00 KKDM 09/17
For the Conducting of Air Emission and Quality Assesment for Koedoespoort Businesses at Transnet over a period of two (2) years 2018-08-14 10:00 TE18-KDS-8GH-03005
For the Conducting of Ergonomic Serveys at Transnet Engineering, Businesses in Koedoespoort Region over a period of two (2) years 2018-08-14 10:00 TE18-KDS-8GH-03006
Water and Waste Water Bulk Works Operation and Maintenance 2018-07-27 12:00 SC1890/2018
Supply and delivery of all-Weather Cold Mix Asphalt Bags in Witzenberg Municipal Area 2018-07-24 12:00 08/2/16/01
Appointment of service providers to render Offsite Travel Management Services in respect of Air Travel, Car Hire, Accommodation, Venues and Conference Facilities for the Department of Public Works: Head Office for a period of three (3) years 2018-08-03 11:00 SCMU5-18/19-GS0002
Department of Labour: Procurement of Office accommodation comprising 3 134.09m² and 20 undercover Parking Bays in Johannesburg CBD for a period of five (5) years 2018-07-24 11:00 JHB.18/ 08
Department of Labour: Procurement of Office accommodation comprising 2 533.64m² and 20 undercover Parking Bays in Germiston CBD for a period of three (3) years 2018-07-24 11:00 JHB.18/ 09
Appointment of a service provider to provide Internal Audit Services to the National Arts Council for a period of three (3) years on 80/20 PPPFA 2018-07-24 11:00 NAC- 01- 2018- 19
C993.02: Reseal of TR75/1 (KM 0.00 to KM 16.50) Holgaten to Oudtshoorn. Designated CIDB Grading: 8CE or higher 2018-07-26 11:00 S048/ 18
Inspection, maintenance & repair of the department fleet. 2018-08-19 11:00 ZNB468/ 15T
Provision of Legal Services 2018-07-23 11:00 EWSETA008/ 2018
Request for bid for renovation services for the National Health Laboratory Service at Bongani Provincial Hospital, Welkom. 2018-07-30 11:00 RFB 022/ 18/ 19


Tender adjudication process

The SBD/WCBD6.1 document must form part of all bids invited.  It contains general information and serves as a claim form for preference points for Broad -Based Black Economic Empowerment (B -BBEE) Status Level of Contribution, and explains how tenders or bids are decided.

The document says:

  • The bidder obtaining the highest number of points will be awarded the contract.
  • Preference points shall be calculated after prices have been brought to a comparative basis.
  • Points scored will be rounded off to two decimal places... Read More
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