Issue Date: 
Thursday, October 31, 2019

Joint Ventures and B-BBEE

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

Government Entities must use the Preferential Procurement Point System to calculate which tender response will be awarded the tender and if you do not have a good B-BBEE Score and if it is a close race, you are going to lose out with a low B-BBEE Score.

On 1 May 2015, the Amended B-BBEE Codes of Good Practice came into effect.  These Amended Codes place a lot of emphasis on Ownership and have a major impact on the B-BBEE Scores of all businesses that participate in B-BBEE in South Africa.  If your company is not going to score any points on Ownership you are also going to struggle to achieve a good B-BBEE Level.  This will negatively impact your tender response. 

Joint Ventures can be a great tool to use to increase B-BBEE Scores by joining forces with Black Owned companies thus increasing your Ownership. If you have the correct Joint Venture partner, with a good B-BBEE score, the overall score that you will achieve in the Preferential Procurement Point System can be much higher than going into the tender alone.

When bidding through a Joint Venture, the Joint Ventures must submit a Consolidated B-BBEE certificate if it is not an incorporated entity when responding to tenders.  This means that you will have to obtain a new B-BBEE certificate for the Joint Venture which consolidates each participant’s B-BBEE status level.  You apply for a Consolidated B-BBEE certificate at your B-BBEE Verification Agency who will issue the Consolidated B-BBEE certificate after combining the Joint Venture partners’ B-BBEE Certificates – this should not be a tedious task and it should not take long at all.

The Consolidated B-BBEE certificate must be tender specific – in other words it must contain the name and number of the tender that you are responding to.

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.
Supply and delivery of drums and cartridges. 2020-12-02 10:00 SCM/NB14/2020/2021
Quotation for the appointment of a service provider for the supply, delivery and installation of a public address (PA) system in the auditorium. 2020-12-03 10:00 Q45-2020-21
Supply and delivery of equipment and materials 2020-12-02 10:00 SCM/NB15/2020/2021
Minor refurbishment of Metrorail mess areas 2020-12-11 11:00 Rfq01/12/11/2020
Provision of Covid-19 Cleaning Services 2021-01-07 12:00 CO 20/28 O
Request for Quotations for the provision of cleaning services for 2 months at Cape Town International Airport 2020-12-10 10:00 RFQ PR 69025 & 69026
Quotation to appoint a service provider for the supply and delivery og bedding for lodging facilities. 2020-12-03 10:00 Q41-2020-21
For the Supply and delivery of 38 Pair Copper Coaxial Cable 2020-12-08 10:00 BLE 3983/2020
Appointment of a PSP for the development of capital expenditure frameworks for four intermediate city municipalities 2020-12-17 23:45 RFP272/2020
Provision for a Panel of Attorneys for Legal Services for a Period of Three Years 2021-01-04 12:00 GTLM/CS05/2020/2021
Invitation | security camera installation 2020-12-11 12:00 No reference number
For the establishment of frame agreements for the supply of non-food commodities 2020-12-13 23:45 ITB/2020/RSA/004
For the establishment of frame agreements for the supply of food commodities 2020-12-13 23:45 ITB/2020/RSA/003
Invitation / Service Providers/Contractors 2020-12-14 16:00 No reference number
Appointment of a service provider for the provision of birds and pest control services for a period of three (3) years at the South African Nursing Council. 2020-12-14 11:30 RFQ 47/2020
For the provision of decontamination services to various buildings in Limpopo, Pretoria and North West for a period of six (06) months 2020-12-03 10:00 ERACAM 5160-34583
For the appointment of an independent consulting service provider to conduct an evaluation and assessment of IT data service towers volumes for a period of three (3) months 2020-12-09 12:00 GSM/20/11/2031
Supply and install program SV 9100VOIP IP PABX system at Merrivale 2020-11-30 11:00 ZNQ001142/00000/00/PMC/GEN/20T
Expression of Interest (EOI): Pre-qualification of Contractors for implementation of optical fibre infrastructure for Ilitha Telecommunications (Pty) Ltd 2020-12-11 12:00 ITC/C1929/2020
Administration and Management of Disaster Management Volunteers (12 Months Contract) Re-advert 2021-01-05 11:00 COMM-D15/2020/2021

Pages

When to choose a Joint Venture, Consortium or Sub-contracting

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

Many people ask us: how do you decide between using a Joint Venture, a Consortium or Sub-contractor in responding to a... Read More

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