Written by Werner van Rooyen
Joint Ventures can increase your B-BBEE Score
Government entities must utilize the Preferential Procurement Point System to determine which tender responses will be awarded. If you have a low B-BBEE score and the competition is tight, you risk losing out.
On May 1, 2015, the Amended B-BBEE Codes of Good Practice came into effect. These codes emphasize Ownership significantly and greatly influence the B-BBEE scores of all businesses participating in B-BBEE in South Africa. If your company fails to score points in Ownership, achieving a favourable B-BBEE level will be challenging, which can adversely affect your tender response.
Joint ventures can be an effective strategy to enhance B-BBEE scores by collaborating with Black-owned companies, thereby boosting your Ownership. Partnering with the right Joint Venture partner who has a strong B-BBEE score can lead to a significantly higher overall score in the Preferential Procurement Point System compared to tendering alone.
When bidding as a Joint Venture, the partners must submit a Consolidated B-BBEE certificate if they are not an incorporated entity. This means you will need to obtain a new B-BBEE certificate for the Joint Venture that consolidates the B-BBEE status levels of each participant. You can apply for this certificate through your B-BBEE Verification Agency, which will issue it after combining the B-BBEE Certificates of the Joint Venture partners – this process should be straightforward and quick.
The Consolidated B-BBEE certificate must be specific to the tender, meaning it should include the name and number of the tender you are responding to.
To learn more about how Joint Ventures can increase your B-BBEE Score and other tender requirements, consider attending our “Become a Tender Expert” two-day workshops and webinars. You can register online at www.howtotender.co.za/workshops/. If you need further information, please contact us at info@howtotender.co.za.
- The Tender Manual: A detailed, step-by-step guide on how to respond to a South African Tender, including examples of completed SBD forms.
- The Local Content Instruction Manual: Guidance on completing Standard Bidding Document (SBD) 6.2 and Annexures C, D & E.
- The SBD Manual: Contains examples of completed Standard Bidding Documents.
- A Joint Venture (JV) Agreement template.
- Tender 101: A beginner’s guide to tenders.
- Tender Example: Cleaning Services.
- Tender Example: Once-off supply (with NO functionality requirements).
- Tender Example: Once-off supply (WITH functionality requirements).
- Tender Example: NEC3 term contract.