Issue Date: 
Thursday, October 31, 2019

The difference between Consortiums and Joint Ventures

By Werner van Rooyen, Director of HowToTender (Pty) Ltd which specializes in tender consulting and tender training.

It is common business practice to form a Joint Venture when one responds to a tender, especially if you do not have all the expertise required by the specific tender.  But Joint Ventures can be complicated to form and to find the correct partner for the Joint Venture can be challenging.  There is an alternative option.  You could go into a consortium when responding to a tender.

A consortium is an association of two or more individuals, companies, or organisations with the objective of participating in a common activity, such as responding to a tender, or pooling their resources to achieve a common goal.  Within the consortium, each participant retains their separate legal status and the consortium’s control over each participant is limited to activities involving the joint endeavour, particularly the division of profits.  A consortium is formed by contract.

A Joint Venture can be described as a business enterprise where two or more participants come together to share their expertise in order to win a specific contract for a set period of time.  A Joint Venture is a separate entity and is not part of the individual participant’s own enterprise.  Therefor a Joint Venture must have its own set of rules by which it is managed, and this is called a Joint Venture Agreement.

The key reasons to form a joint venture or consortium may be that it will provide your company with new opportunities to respond to a tender or request for proposal and secure tenders which would not otherwise be available to you due to your company’s size and scale.

Before entering into either a joint venture or consortium agreement, all parties need to understand what they want from the relationship.  Both joint ventures and consortiums have risks and benefits: the most important thing is to take account of what your objective is in entering the relationship and then to weigh up which one is more appropriate to help you win a tender.

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 a Service Provider to Develop The Mountain Bike Trails For Mcgregor Musuem in the Northern Cape 2020-03-13 11:00 DEDaT 0006/ 2019
Provision of Open Source Learner Management Service for a period of 36 Months 2020-03-06 11:00 NEMISA/ 2019/ LMSRFB010
The Appointment of a service provider to conduct a feasibility study towards the development of a monumental flag and flag pole. 2020-03-13 11:00 DAC 14/ 19- 20
Appointment of service provider to supply and deliver 5 ton truck for Clanso Farmer Production Support Unit (FPSU) located in ward 18,24,27, and 28 in the Umhlathuze Local Municipality within King Cetshwayo District Municipality in the province of Kwazulu-Natal 2020-03-12 11:00 SS- KZN 7/ 1/ 6/ 3 (753) 3T
Appointment of an HR consultancy firm to provide support to the CETA Administrator 2020-03-06 11:00 016- 2019/ 2020
Procurement of alternative accommodation for the Department of Public Enterprises (lettable office space of 12 144.34sqm and 228 parking bays for a period of 5 years) in Pretoria CBD, Arcadia, Hatfield 2020-03-13 11:00 H19/ 015PF
Procurement of alternative accommodation for the Department of Correctional Services - JICS (lettable office space of 497.73sqm and 12 parking bays for a period of 3 years 2020-03-13 11:00 H19/ 016PF
Appointment of a service provider to render technical security maintenance of KZN Legislature’s security systems infrastructure for a period of 36 months 2020-03-16 11:00 KZNL 01/ 2020
ZNT 02975W: KZN: Department of Community Safety and Liaison : Durban West Office: Pinetown: Proposed hire of office accommodation in extent of 242m2 four (04) lock up three (03) under cover and one (01) parking bay for disabled person. 2020-03-20 11:00 ZNT 02975W
Appointment of a Service Provider to Render Cleaning Services for the Housing Development Agency Head Office, 6 – 10 Riveria Office Park, Riviera Road, Killarney 2020-03-13 11:00 HDA/ JHB/ 2019/ 022
ZNT 02976W KZN: Department of Community Safety and Liaison: ILembe District Office: Kwa Dukuza: Proposed hire of office accommodation in extent of 242m2 four (04) lock up three (03) under cover and one (01) parking bay for disabled person. 2020-03-20 11:00 ZNT 02976W
Rendering of Security Services at the Department of Labour, Mt Ayliff Labour Centre for a period of 36 months (3 years). 2020-03-27 11:00 LECS 16/ 2019
Rendering of Security Services at the Department of Labour, Maclear Labour Centre for a period of 36 months (3 years) 2020-03-27 11:00 LECS 10/ 2019
Appointment of a service provider to provide office space on a lease agreement for CCMA Ekurhuleni office within the Benoni and/ Germiston CBD area for a period of five (5) years. 2020-03-13 11:00 CCMA/ 2018/ 38(A)- EKU
Rendering of Security Services at the Department of Labour,Butterworth Labour Centre for a period of 36 months (3 years). 2020-03-27 11:00 LECS 11/ 2019
Rendering of Security Services at the Department of Labour, Lusikisiki Labour Centre, Flagstaff and Bizana Visiting Points for a period of 36 months (3 years). 2020-03-27 11:00 LECS 09/ 2019
Rendering of Security Services at the Department of Labour, Mthatha Labour Centre for a period of 36 months (3 years). 2020-03-27 11:00 LECS 08/ 2019
Limpopo Central Hospital - Supply Of Bulk Services to Site 2020-03-13 11:00 NDOHF 11/ 2019- 2020
Request For suitable office space for SITA Limpopo, Polokwane Office through an operating lease for a period of 5 years 2020-03-13 11:00 RFB 2078- 2019
Appointment of a service provider for the re-arrangement of the office layout at the Cecilia Makiwane building. 2020-03-23 11:30 SCM 05/2020/SANC

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