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.
Appointment Of Service Providers For The Supply, Delivery and Off-Loading Of Bulk Metering Kiosks (Bmk) and Freestanding Bulk Metering Units (Bmu) On an as-and-When Required Basis From Date Of Award Until 30 June 2024. 2021-07-22 10:00 A-EE 04 - 2021
The Appointment of a Service Provider For The Supply Of Sip Terminals, Sip Trunk Services, Telephony Support Services of a Dedicated Hosted Multi-Tenancy Pbx & Ucc Platform As Well As Direct Internet Access (Centralised Breakout) on an as When Required Basis On From Date Of Award Until 30 June 2024 2021-07-21 10:00 A-ICT 03 - 2021
The Appointment of a Service Provider for The Supply, Installation, Support and Maintenance of The Fleet Tracking Units and Monitoring Data On as and When Required Basis From Date Of Award Until 30 June 2024 2021-07-21 10:00 A-ICT 04 - 2021
The appointment of a service provider for upgrading of ten (10) existing air quality monitoring stations: supply and installation of meteorological sensors and equipment, and particulate matter 2.5 (pm2.5) analysers from date of award until 30 June 2022 2021-07-09 10:00 A-HEA 04-2021
The appointment of Electrical Contractors for the Electrification Projects in City of Ekurhuleni on an as and when required basis from date of award until 30 June 2024 2021-07-19 10:00 A-EE 17-2021
The Appointment of Electrical Contractors For The Supply, Installation and Commissioning Of 25m Counter-Balanced Highmast Lighting Structures on an as-and-When Required Basis From Date of Award Until 30 June 2024. 2021-07-23 10:00 A-EE 05 - 2021
The Appointment Of Service Providers for the Testing, Fault Location, Repair and Maintenance Of Gas Filled and Oil Filled Underground Cable Networks From 33kv To 132kv on an as and When Required Basis From Date Of Award Until 30 June 2024. 2021-07-26 10:00 A-EE 10 - 2020
The Appointment of Electrical Contractors For The Repair and Maintenance Of Paper Insulated And Xlpe Underground Cable Networks From 33kv Up to 132kv and Associated Copper and Optic Fibre Pilot Cables on an and When Required Basis From Date Of Award Until 30 June 2024. 2021-07-26 10:00 A-EE 11 - 2020
Appointment Of Electrical Contractors for the Installation Of New Medium and Low Voltage Cables (Copper And Aluminium) and Equipment as well as Pilot Cables (Optic Fibre) For Planning and Construction Reticulation Projects on an as-And when Required Basis From Date Of Award Until 30 June 2024. 2021-07-23 10:00 A-EE 11 - 2021
Appointment of a Debt Sponsor, Panel of Dealers and Settlement and Paying Agent for the IDC Domestic Medium Term Note (DMTN) Programme 2021-06-28 11:00 T24/06/21
Appointment of CIDB grading 1EB to 3 EB contractors for minor routine electrical maintenance of CoE buildings/facilities, property, plant, and equipment on an as and when required basis from date of award until 30 June 2024 2021-07-22 10:00 A-RE 01-2021
Appointment of electrical contractors with a CIDB grading of 4EB (including 3EB PE) to 9EB for electrical maintenance work in all CoE buildings/facilities, property, plant and equipment on an as and when required basis from date of award until 30 June 2024 2021-07-23 10:00 A-RE 05-2020
Appointment of service providers for distribution, putting-up and removal of printed material for various projects carried out by City of Ekurhuleni on an as and when required basis from date of award until 30 June 2024. 2021-08-12 10:00 A- CM 01-2021
Appointment of a Panel Of Specialist Forensic Investigation For the City Of Johannesburg for the Period Of Thirty Six Months (36 Months). 2021-07-09 10:30 A873
Provision of travel, accommodation and conferencing services 2021-07-09 11:00 CGET 02/2021/22
Provision of cleaning and hygiene services 2021-07-09 11:00 CGET 01/2021/22
Co-sourcing of internal audit activities 2021-07-09 11:00 CGET 03/2021/22
Request For The Provision Of Office Accommodation/Space For The Ugu District Municipality Budget & Treasury And Human Resources Units For A Period Of Thirty-Six (36) Months 2021-07-23 12:00 UGU-05-1565-2020
Service Providers To Form A Panel Of Medical Practitioners For uMgungundlovu District Municipality 2021-07-29 12:00 02/2021
Disposal/Auction Of Council Vehicle 2021-06-29 09:00 ZDMQ: 0122/06/2021

Pages

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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