Issue Date: 
Wednesday, September 12, 2018

Advantages and disadvantages of Consortiums

Consortiums are often considered as entities to use when responding to tenders in South Africa. The question that arises is whether to use a Consortium or a Joint Venture when responding to a tender. To help you with this we have compiled a list of advantages and disadvantages for both Consortiums as well as Joint Ventures. In this article we list the advantages and disadvantages of Consortiums. Look out for the same article on Joint Ventures.

Consortiums Advantages:

  • Easy to establish as there are no formal procedures that must be followed. Most consortiums are formed in writing by the execution of a consortium agreement. In addition, no capital is required to create the consortium.
  • Members of the consortium can change their contractual agreement at any time to suit changed circumstances.
  • The consortium can be set to expire on a given date or on the occurrence of certain events without any formal requirements.
  • The consortium is not directly subject to taxation; however the individual members are.
  • Some of the members of a consortium may choose to be 'undisclosed' in dealings with third parties.
  • The cost of running a consortium is generally lower to that of a joint venture..

Consortiums Disadvantages:

  • It is difficult for consortium members to restrict or limit its liability. Members may even become liable to third parties for the non-performance of other members of the consortium or the debts of such members in undertaking a common project.
  • Third parties will often find it difficult to enter into contract with a non-legal entity like a consortium. Because it is a non-legal entity funding is also difficult.

To learn more about this and many other bid conditions please attend one of our HowtoTender workshops. For more information on the tender courses please email Estelle at estelle@how2tender.com.

Title Closing Date Tender No.
Harding: St Andrews Hospital: Department of Health: Hire of Residential Accommodation to Accommodate 14 X Community Service Officers for a period of 12 months 2019-04-25 11:00 ZNT 2846W
Kokstad: E.G. Usher Memorial Hospital: Department of Health: Hire of Residential Accommodation to Accommodate 21 X Community Service Officers for a period of 12 months 2019-04-25 11:00 ZNT 2848W
Provision of Security Services at Frontier regional Hospital site, in the Eastern Cape Department of Health for a period of 36 months. 2019-05-02 11:00 SCMU3- 18/ 19- 0527- FRH
Rendering of a Cleaning Contract at the Military Acadamy, Saldanha for the period of one (1) year as per User Requirement Specification MILACAD/01/18. 2019-04-24 11:00 SPSC- B- 069- 2018
Placement of a dedicated cardioplegia - delivery pump using microplegia method of administration and supply of sole - property associated consumables including a fully comprehensive maintenance contract for Groote Schuur Hospital for a three (3) year period (optional to extend for an additional two (2) years) 2019-04-23 11:00 GSH: PT48/ 2018
Supply and delivery of two (2) crawler tractors to the South African Police Service: Division: Human Resource Development. 2019-04-23 11:00 19/ 1/ 9/ 1/ 107 TV(18)
Supply and delivery of twenty seven (27) cattle trailers to the South African Police Service: Division: Detective Services. 2019-04-23 11:00 19/ 1/ 9/ 1/ 128 TV(18)
Supply and delivery of twenty (20) luggage trailers to the South African Police Service: Division: ORS. 2019-04-23 11:00 19/ 1/ 9/ 1/ 129 TV(18)
Supply and delivery of hydraulic loading crane to the South African Police Service: Division Operational Response Services 2019-04-23 11:00 19/ 1/ 9/ 1/ 130TV(18)
Appointment of a service provider for leasing, support and maintenance of 112 scanners and 6 book scanners for the Deeds Registries: Pretoria, Johannesburg, Cape Town, Pietermaritzburg, Bloemfontein, Mpumalanga, King Williams Town, Kimberley, Vryburg, Limpopo and Mthatha for a period of thirty six (36) months. 2019-04-12 11:00 DRDLR (CRD- 21) 2018/ 19
Maintenance and repair of SAPS helicopters and aircrafts for a period of two (02) years for the South African Police Service 2019-04-23 11:00 19/ 1/ 9/ 1/ 114TA (18)
The supply and delivery of labels, ribbons and boxes used by Clinicom, Jac and primary healthcare systems for all Western Cape Health facilities for a three (3) year period. 2019-04-19 11:00 WCGHSC0195/ 2019
Appointment of a suitable service provider to conduct a skills audit for the KwaZulu-Natal Department of Education for a period of three years from date of award 2019-04-11 11:00 ZNB 0005 E/ 2018/ 2019
Appointment of a panel of eight (8) service providers to render car hire and related services to Statistics South Africa (Stats SA) for a period of thirty-six (36) months. 2019-04-22 11:00 Stats SA 011/ 18
Appointment of a Service Provider’s for the Rendering of Vehicles Auctioneering Services to the South African Police Service Nationally (Per Province) for a period of two(02) years 2019-04-24 11:00 19/ 1/ 9/ 1/ 119 TP (18):
Supply and Delivery of Daily Newspapers for Navy Headquarters for a Period of One (01) Year. 2019-04-25 11:00 CPSC- B- PC- 058- 2018
Provision of NIMS-Support and Maintenance tender for the three RSR Regional Offices( Gauteng,Kwa-Zulu Natal and Western Cape Province) 2019-04-23 12:00 RSR/ NIMS/ 001/ 03/ 2019
For the Provision of Long Term Advisor Services to the Government Technical Advisory Centre (GTAC) for the Office of the Accountant General (OAG) to Support in the Implementation of the Municipal Finance Improvement Programme (MFIP) Phase III - Provincial Treasury Revenue Management Specialists 2019-04-12 11:00 GTAC 028- 1- 2018
For the Provision Of Long Term Advisor Services to the Government Technical Advisory Centre (Gtac) for the Office of the Accountant General (OAG) to Support in the Implementation of the Municipal Finance Improvement Programme (MFIP) Phase III - Asset Management Specialists 2019-04-12 11:00 GTAC 026- 1- 2018
For The Provision of Long Term Advisor Services to The Government Technical Advisory Centre (GTAC) for the Office of the Accountant General (OAG) to Support in the Implementation of the Municipal Finance Improvement Programme (Mfip) Phase III - Provincial Treasury Advisors 2019-04-12 11:00 GTAC 023- 1- 2018

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Extension of validity period

By Werner van Rooyen

www.howtotender.co.za

31 January 2019

Those of you who are familiar with responding to tenders will know that it is common practice for procuring entities to extend the bid price validity period. We received the undermentioned queries regarding the extension of the validity period of the bid price.

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