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.
Transport of bulk waste bins from George Waste Transport Station to PetroSA, for a three year period 2021-02-26 12:00 COM001 OF 2021
Supply and delivery of water & wastewater chemicals and portable equipment for a period of three (03) years 2021-02-22 12:00 13-2020/2021
Appointment of a panel of four (04) service providers for supply and delivery of transformers, mini substations, cables and accessories for stores 2021-02-22 12:00 26-2020/2021
Appointment of a panel of ten (10) service providers for supply and delivery of single, triple phase, Enermax meters, metering units and circuit breakers for stores. 2021-02-22 12:00 27-2020/2021
10mm2 PVC SWA PVC 4C Cable 2021-01-27 12:00 RFx 6000000341
Terms of reference for revision of the comprehensive gender toolkit by reference group 2021-02-11 11:00 APRM/017/SIDA/ GTK/2021
Terms of reference for APRM manual on gender best practices and lesson learned 2021-02-11 11:00 APRM/016/SIDA/ MGBP/2021
Terms of reference for the Comprehensive Gender Mainstreaming Guidelines 2021-02-11 11:00 APRM/015/SIDA/ GMG/2021
Procurement of services provider/firm for production and dessimination of popular version for the study on governance, gender and peacebuilding 2021-02-11 11:00 APRM/014/SIDA/ SGGP/2021
To repair the damage roof for the walkway and build the security hurt (1GB) GRANDING 2021-01-25 11:00 R/S/2021/1696
To replace the faulty electrical pump house and replacing the broken geysers to the state house and office (1 GB/CE Grading) 2021-01-25 11:00 R/S/2021/1911
The Provision of collecting, dismantling, repairing, overhauling, rewinding, assembling, painting, testing, supply of spares, delivering as well as replacing of existing electrical motors on as and when required basis at Komati Power Station 2021-02-18 10:00 MPGXC006322R1
Supply and delivery of batteries and battery chargers for a period of 36 months 2021-02-24 12:00 A040-2020/21
Provision of electrical waste management services for a period of 36 months 2021-02-24 12:00 A042-2020/21
Provision for the Appointment of an Energy Expert for a period of 6 Months 2021-01-29 13:00 EWSETA/RFQ/91/2020
Provision for the Appointment of a Quality Assurance Specialist Manager 2021-01-29 13:00 EWSETA/RFQ/90/2020
Covid-19 Testing 2021-01-25 11:00 REQ No.01770
Servicing of fire extinguishers in Nama Khoi Municipal Area 2021-01-29 10:00 Q/NC062/18/20202-2021
Rental of tlb and 10 cub tipper truck for 20 days at Waterval 2021-01-26 12:00 FPQ202101/009
Re-Advert: Appointment of a Labour Consultant to review and develop Employment Contracts for ERWAT. 2021-01-26 12:00 FPR202011/043R

Pages

Who is the bidder or his or her representative?

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

In Organ of State tenders, the Standard Bidding Document 4 – Declaration of Inters – ask in paragraph 2.1 the following: “Full name of bidder or his or her representative... Read More

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