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, Delivery and Off-loading of Coal Peas, Thohoyandou Management Area (Limpopo Province ). 2018-11-06 11:00 LMN 15/ 2018 LIMPOPO
Non Adherent Dressing With Soft Silicone Technology Atraumatic Dressing, Dressing With Safetac Dressing 20x30. 2018-10-02 11:00 ZNQ NO.2593/ 08/ 18
Bacteriostatic Gel which Containspropylene Glycol (Box Of 10) 15g Tubes 2018-10-02 11:00 ZNQ NO.2592/ 08/ 18
Supply, Delivery and Off-loading of Groceries for Thohoyandou and Polokwane Management Areas ( Limpopo Province) 2018-11-06 11:00 LMN 09/ 2018 LIMPOPO
Smooth Bore Breathing Circuits With Extra Limb And 2lt Breathing Bag Adult (3 Limb) 1.6mtr Long 2018-10-02 11:00 ZNQ NO.2586/ 08/ 18
Disposable Bed Sheets - 100cm X 200cm, Sample Required With Quote. 2018-10-02 11:00 ZNQ NO.2528/ 08/ 18
Supply, Delivery and Off-loading of Cleaning Material and Toiletries for Thohoyandou and Polokwane Management Areas ( Limpopo Province) 2018-11-06 11:00 LMN 12/ 2018 LIMPOPO
Adaptic Digit Non Adhering Dressing Digit. 2018-10-02 11:00 ZNQ NO.2526/ 08/ 18
Supply: Teledyne Benthos 867 Battery Replacement Kits (3002855) - x 4. 2018-09-28 11:00 RFQ000289
Suture Grasper 14 Gauge 15cm Length 2018-10-02 11:00 ZNQ NO.2479/ 08/ 18
Appointment of a services provider for the supply, delivery, training and maintenance of two waste palletizer. 2018-10-12 11:00 GT/ GDARD/ 131/ 2018
Please Supply Sxm40-40 Hot Water Circulating Pumps as per required specification 2018-10-02 11:00 ZNQ NO.2810/ 08/ 18
Supply and Install the Birds Deter Stand (See Picture Attached) Quantity: 1 Unit 2018-10-02 11:00 ZNQ NO.1523/ 06/ 18
Northern Cape: Upington and De aar Area: Rehabilitation of Bridges in Upington and De aar area. CIDB GRADING: 7 CE or Above. 2018-10-16 11:00 DRPW 001/ 2018
Supply, delivery, installation, training, commissioning, internal validation and support of a Microfluidics Fragment Analyser (MFA) for DNA analysis, for use in the Molecular Forensics Laboratory at UCT Health Sciences Faculty for the Western Cape Forensic Pathology Service. 2018-10-19 11:00 WCGHCC034/ 2018
Steam Bend Mild Steel 1/2” (15mm) Male Thread Both Ends, Sabs Approved Only 2018-10-02 11:00 ZNQ NO.1645/ 06/ 18
V-Loc Sutures 180 2/0 Gs-21 Taper 1/2 Circle 37mm 2018-10-02 11:00 ZNQ NO.2292/ 07/ 18
Pliable Polymer Tubing for Suction Sterile Id 6mm X Od 11mm, Six Months Period Contract Request 720 Pkts of 7.5 Mtr = 5400 Mtrs/Month. 2018-10-02 11:00 ZNQ NO.2969/ 09/ 18
Provision of ICT Infrastructure upgrade tender notice of closing date extension. 2018-09-25 11:00 OPFA/ INUP2019/ T1
Disposable Laparoscopic Scissors Curved With Monopolar Cautery 5mm Shaft 30-35cm In Length Sterile Expiry Date, Single Use Shears With Monopolar Cautery. 2018-10-02 11:00 ZNQ NO.2473/ 08/ 18

Pages

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... Read More
Free Keyword search

Search all tender notices for FREE!

No subscription or registration required!

You can also search by the reference of the the tender.

Advanced search

Search by Issuer, Region or Sector, individually, or using any combination of the three.