Issue Date: 
Thursday, October 31, 2019

Joint Ventures and Tenders

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

Joint ventures are collaborative arrangements where two or more businesses come together to share their expertise to win a specific contract for a set period for a common purpose such as bidding for a tender. A Joint Venture is a separate entity and is not part of the individual participant’s own enterprise. 

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. 

Partners in a Joint Ventures join forces and make Joint Ventures a good business idea to compete if you do not have all the necessary skills, expertise, recourses, infrastructure, or capital that are required for a specific tender.

It is important to know the following 8 things 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.
  2. Difference between a Joint Venture and a Private Company
    The moment two or more people and/or companies unite to do business together it can be construed of being a Joint Venture, but once these parties to this business register a formal private company then it is no longer a Joint Venture.
  3. Difference between a Joint Venture and a Partnership
    A Joint Venture often sounds much like a Partnership but the main difference between a Joint Venture and a Partnership is that the members of a Joint Venture have come together for a specific Tender or Request for Proposal, while a Partnership is usually formed between two or more people to run a business for an unlimited period.
  4. Share expenses
    Each member of a Joint Venture only shares the expenses of the specific Tender for which the Joint Venture was established.
  5. Income Tax
    Each member of a Joint Venture is liable for their own Income Tax.  If the Joint Venture is profitable the net income of the Joint Venture will be distributed to each member of the Joint Venture according to their percentage contribution towards the Joint Venture.  The members will then be tax in their individual capacity or if the member of the Joint Venture is company, then the gains of the Joint Venture will form part of the income of the company and will be taxed according to company tax legislation.
  6. Ownership
    Especially important to realize is that each member of the Joint Venture keeps ownership of their own personal fixed assets as well as their current assets.
  7. Bank account
    It is important to open a separate bank account for the Joint Venture.  You do not want your private funds to get entangled with the funds of the Joint Venture.
  8. Set of accounts
    Always keep a separate set of accounts for the Joint Venture.  You do not want the Joint Venture transactions to get mixed up with your own transactions or those of your company.

Remember, before you dismiss a Tender or Request for Proposal as undoable, think of teaming up with other businesses and/or people in the form of Joint Venture and bid through the Joint Venture. Do not underestimate the power of Joint Ventures.

Joint Ventures can bring you the success you always wanted without being trapped in a never-ending partnership or shareholding scenario.

Countless tenders have been awarded to Joint Ventures and many more tenders will be awarded to Joint Ventures. 

We foresee that Joint Ventures will become an integral part of South Africa’s business sphere.

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

Contact us at should you require more information.

You can also purchase a Tender Manual (Handbook) on our website 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.
Supply and delivery of Traffic Controller 4 Phase Lamp Driver Module. 2021-05-10 12:00 RFQ354/2020/21
Supply and delivery of Bulk Gas, Gas Cylinders and installation of Gas infrastructure 2021-05-31 12:00 JCPZ/RM02/2020
Unified Email Management Solution 2021-05-31 12:00 JCPZ/ICT06/2020
Preventative Maintenance 2021-05-31 12:00 JCPZ/ICT05/2020
The supply and delivery of renal dialysis fluids: Various Institutions: contract period: 3 years 2021-05-18 11:00 ZNB6686/2021-H
Supply, delivery of digital mobile x-ray unit (SPEC NO: AC 10883) for Ngwelezane hospital. Once off. 2021-05-21 11:00 ZNB9933/2021-H
Supply, delivery, installation, training and commissioning of 4 x cardiac output monitor for Dr Pixley Ka Seme Memorial Hospital. Once off 2021-05-24 11:00 ZNB9932/2021-H
Supply and installation of security fencing at York Street Cemetery 2021-05-14 12:00 COM016/2021
Supply and installation of 10 line electric fence at workers collection point, erf 464, Industrial Road, George Industria 2021-05-14 12:00 DPD043/2021
Request for Proposal: For the provision of customs clearing services for UNHCR in South Africa 2021-05-30 16:00 RFP/2021/RSA/003
The GIZ South Africa and Lesotho intends to conclude a contract with an Organisational Management consulting company to provide an expertise in Organisational Development Analysis and Process (OD) for its operations. 2021-05-14 23:00 83380000
The provision of gardening and grounds maintenance, to the North West Provincial Legislature for a period of three years 2021-05-17 11:00 NWPL 01/2021/22
Supply and delivery of personal protective equipment for fire & rescue services personnel at Ngaka Modiri Molema District Municipality for a period of three (03) years on an as and when required basis 2021-05-21 11:00 NMMDM 19/20/08 CS
Appointment of panel of not more than fifteen (15) specialised attorneys for a period of three (03) years. 2021-05-21 11:00 NMMDM 18/19/03 CRSS
Appointment of a contractor for the ancillary works at Pelican Beach Resort in Velddrif 2021-05-14 12:00 QUOTATION 8/2/25-2021 / MN91-2021
The supply street light fittings, street light poles and 11 kv equipment cable and terminators 2021-05-11 10:00 BLE 3430/2021
Transport of containerised municipal solid waste and chipping of garden waste for the period from 01 July till 30 June 2024 2021-05-21 12:00 ENG 02/2021/22
Rental of Office Accommodation for the Atlantis Satellite Office for a leased period of five (5) years. (Leases ranging from seven to ten years will also be considered) 2021-05-25 11:00 04/2021
The provision of accounting support services for a three-year period 2021-05-28 12:00 HES-FIN 01/2122
Appointment of a service provider for media monitoring services for George Municipality, for a period of three years from date of appointment 2021-05-31 12:00 MM007/2021


Who is the bidder or his or her representative?

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

In Organ of State tenders, the Standard Bidding Document 4 – Declaration of Inters – ask in paragraph 2.1 the following: “Full name of bidder or his or her representative... Read More

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