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.
Supply and Delivery of suction pipes - Honeysucker 2019-01-18 12:00 B424/2018/19
All prospective bidders are hereby invited to submit quotations for accommodation: bed, dinner, breakfast & conference package, supply chain management as specification appear below 2019-01-22 12:00 RFQFIN/01/2018/19
Development of an Implementation Plan and Budget for a Multi-Year History Festival in Plettenberg Bay 2019-01-18 13:00 SCM/RFQ/2019/042/EDP
Provision of Competency-Based Assessment Services for Senior Managers 2019-01-18 12:00 SCM/RFQ/2019/043/CORP
Supply and Delivery of Fire Extinguishers and Raingear 2019-01-17 12:00 B422/2018/19
Supply and delivery of Building Sand 24 cubes 2019-01-17 12:00 B423/2018/19
Procurement of Pre-qualification of Construction Contract: Construction of Polihali Dam and Appurtenant Structures 2019-03-25 14:00 4020
Procurement of Pre-qualification of Construction Contract: Construction of Polihali Transfer Tunnel 2019-03-26 14:00 4021
Appointment of Professional Service Providers (Consultants) 2019-02-01 12:00 SCM 008/2018/19
Appointment of service providers for the rendering of a complete revenue enhancement service, online and real time electricity vending, revenue protection, ICT backend and matering for the period of 36 months. 2019-01-31 12:00 LTLM2018-19/ BTO01
Appointment of a Panel of Service Providers for the Construction of Internals Roads and Storm Water in Wedela Extension 3 (Phase 3) with a CIDB Grading of 5CEPE/6CE or Higher 2019-02-01 12:00 ID(R&S) 11/12/1819
Tender for the appointment professional service provider to determine the fair valuation of MEGA's Investment Property Portfolio and the revaluation of land and buildings classified as Property, Plant and Equipment (PPE) 2019-02-14 12:00 MEGA/2018/05
Request for proposals for the appointment of a Registered Construction Health and Safety Agent for the construction of the Mpumalanga International Fresh Produce Market: Ancillary Buildings and Services 2019-02-13 12:00 MEGA/2018/04
Procurement of Development Partner, Morula Mixed Housing Development in Mabopane Tshwane 2019-01-29 11:00 NWHC 09/2018 DEV –PARTNER-2018
Appointment of a panel of attorneys for a period of 36 months 2019-02-08 12:00 22-2018/19
Request for 175 Combination Infall CK5 (1000 X 365 X 180) 2019-01-17 11:00 292297
Request for 65 pallets interlock pavers grey (80MM 25MPA) 2019-01-17 11:00 292300
Rental of a combination of one excavator, two dumpers & one digger loader for January and February 2019 2019-01-17 11:00 292520
Provision of consultancy services on legal and mandate issues 2019-01-18 15:00 No reference number
Provision of consultancy services on institutional and administrative reform issues 2019-01-18 15:00 No reference number

Pages

10 Features of a good Joint Venture Agreement

By W van Rooyen

www.howtotender.co.za

A Joint Ventures is a good business idea to compete for tenders if one does not have all the necessary expertise that are required from a specific tender. The thing to remember though is that you must have a solid Joint Venture Agreement in place for your Joint Venture. A good, rock solid Joint Venture Agreement will protect the participants to the Joint Venture.

 Here are 10 features that any good Joint Venture Agreement... Read More

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