Issue Date: 
Thursday, January 31, 2019

8 things you must know about Joint Ventures

By Werner van Rooyen

31 January 2019

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.

  1. Difference between a Joint Venture and a Private Company

The moment two or more people and/or companies come together; 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.

  1. 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 of time.

  1. Share expenses

Each member of a Joint Venture only share the expenses of the specific Tender for which the Joint Venture was established.

  1. 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.

  1. Ownership

Very important to realize is that each member of the Joint Venture retains ownership of their own personal fixed assets as well as their current assets.

  1. 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.

  1. Set of accounts

Always keep a separate set of accounts for the Joint Venture. You don’t want the Joint Venture transactions to get mixed up with your own transactions or those of your company.

So 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.

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 www.howtotender.co.za. Please contact Estelle at Estelle@howtotender.co.za should you require more information.

This article was written by Werner van Rooyen, Director of HowToTender (Pty) Ltd which specializes in tender consulting and tender training.

Title Closing Date Tender No.
The manufacture, supply, delivery to site, installation and commissioning of one passenger lift, guide rails, operating system and maintenance contract for Olifants River Resources Development Project at De Hoop Dam. 2019-06-06 11:00 DWS04- 0419 WTE
Appointment a pool of suitably qualified service providers to provide Interpreting services in QAA-Schools Sub-unit for a period of three years (36 months) 2019-05-17 12:00 RFQ- 0002
Supply and delivery of stainless steel grade 340 L for a period of 24 months to construction central 2019-06-06 11:00 DWS05- 0419 WTE
Procurement for Opentext Software License and Maintenance and Support on Behalf of the Western Cape Government Department of the Premier for a three (3) year period 2019-05-09 11:00 RFB1872/ 2018
Port Elizabeth: Alternative accommodation for Ibhayi Local Office: SASSA. 2019-05-14 11:00 LSPE05/ 2019
Appointment of a mechanical service provider to provide maintenance and general mechanical work at SITA Gauteng and other sites. 2019-05-15 11:00 RFB 1921/ 2019
Calvinia Department of Home Affairs: Alternative office accommodation: 415.88m² and 5 parking bays for a period of 5 years. 2019-05-22 11:00 LS07/ 2019
Calvinia Statistics South Africa: Alternative office accommodation: 320.45m² and 10 parking bays for a period of 5 years. 2019-05-22 11:00 LS03/ 2019
Appointment of a Group Life Insurer 2019-05-22 11:00 RFP 10/ 2019
Procurement of 2 PSIRA grade A armed close protection and 4 grade C static security guards at Mafikeng North West Public Works offices for the North West administrator for the period of 15 months 2019-05-14 11:00 HP19/ 001GS
Appointment of a Travel Management Company to Provide Travel Management Services and accomodation to the South African Police Service:Domestic and International for a period of three (03) years 2019-05-22 11:00 19/ 1/ 9/ 1/ 53 TP (18)
KZN: Department of Education: eThekwini Region: Verulam: Cottonland Primary School: Repairs and Renovations 2019-05-22 11:00 ZNTD 04634W
KZN: DOPW: eThekwini Regional Office: Mayville Complex: Rendering of Security Services within the complex, vacant land between Gazzela and Piedmont Road for a Period of Thirty-Six (36) Months (3 years). 2019-05-22 11:00 ZNTD 04762W
Appointment of a Service Provider for the Leasing of Office Space [Pretoria] for a Period of Five [5] Years for Groenkloof National Park 2019-05-17 11:00 GNP- 057- 18
Pretoria: Leasing of Office Accommodation of 30 223 square meters and 1 584 parking bays usage by the Department Home Affairs for period of 5 years in Pretoria CBD 2019-05-14 11:00 PT19- 002
Appointment of a professional technical expert to advise the Energy Regulator on the prudency of asset acquisition in Transnet SOC limited’s new Multi Products Pipeline project for a period of seven (7) months 2019-05-09 11:00 NERSA/ 1920/ PPT/ PAA/ BID001
Pretoria: Leasing of Office Accommodation of 18 873.86 square meters and 454 parking bays usage by the Department of Correctional Services Head Quarters for a period of 5 years in Pretoria CBD and the outskirts 2019-05-14 11:00 PT19/ 001
Appointment of a service provider to undertake the ex-post regulatory impact assessment of all Energy Regulator decisions and stakeholder perception/ satisfaction survey 2019-05-09 11:00 NERSA/ 1920/ RAR/ RIA/ BID002
ICT Research Support Membership for a period of 36 months 2019-05-24 12:00 DPME 05- 2019/ 20
Appointment of a Service Provider to Render Organisational Work-Study Services for a period of six (6) months 2019-05-23 11:00 NCC/ 04/ 2018/ 19

Pages

The 8 steps in the Tender Adjudication process

By W van Rooyen

www.howtotender.co.za

31 January 2019

It is important to understand the Adjudication process when one responds to a Tender or Request for Proposal. If you have these 8 steps under control when responding to tenders, changes are good that you will proceed to the next round.

Here are 8 steps in the adjudication process that Organs of State will most often follow in determining which bidder will win the tender:

  1. Opening... Read More
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