Issue Date: 
Thursday, October 31, 2019

Reasons why Joint Ventures fail

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

There are many reasons why Joint Ventures fail and five of the most common reasons are:

  1. Lack of a proper Joint Venture Agreement.  The importance of a proper JV Agreement cannot be emphasized enough.  Ensure that you have a proper contract in place that covers the entire foundation of your JV.
  2. Lack of finance.  If one of the parties to the Joint Venture is struggling financially it can be the downfall.  The simple reason is that the struggling partner will drain the Joint Venture, not allowing the it to build up capital for challenging times or future expansions.
  3. Control issues.  In any relationship you will always find that someone needs to be the leader or the decision maker.  A Joint Venture is the same – somebody needs to be in control.  Ensure that the correct leadership is appointed.
  4. Compatibility.  Sometimes in the rush of securing a tender a business owner will go into a Joint Venture with another business owner who does not have the same values and ethics.  This is a dangerous mistake.  Remember that you have established a certain way of doing business and that you have invested a lot in building the ethics in your business.  Ensure that the Joint Venture partner that you sign up with is compatible with your policies of running a business.
  5. Unrealistic expectations.  Ensure that all role players are on the same page when it comes to the Joint Venture’s successes.  There must be clear indicators on the chances of winning a tender as well as the expected profits to be made after the awarding of a tender and the completion of the tender.  All the parties involved must be briefed on the expected profits so that there are no unrealistic expectations from any of the parties involved.

If you tend to these five critical areas in your Joint Venture the chance for it to succeed will increase immensely.

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 deliver 90 000 corrugated carton boxes (grade cc) and 90 000 corrugated inner pads (grade cc) 2021-02-19 11:00 B/ WCED 2899/ 20
Appointment of NPOs for the Community Work Programme (CWP) for a period of twelve (12) months. 2021-02-12 11:00 COGTA (T) 17/ 2020
Terms of reference of the technical data assistant for the African Union Governance Campus Project 2021-02-11 11:00 APRM/018/SIDA/DAGC/2021
Provision for Career Guidance Coordination Services 2021-01-29 13:00 EWSETA/RFQ/92/2020
Appointment of a Service Provider For Procurement Of An Audit Management Software 2021-01-29 11:00 SD15/ 2020
Appointment of a Service Provider To Supply, Deliver, Install And Maintain Generators To Various Ditsong Museums Of South Africa 2021-02-12 11:00 DMSA 014/ 2020
Appointment of a Panel of Arts, Cultural And Heritage Practitioners To Develop and Implement Arts, Cultural and Heritage Activities (Public Programmes) At Ditsong Museums Of South Africa for A Period Of 36 Months (Three Years 2021-02-12 11:00 DMSA 001/ 2020
Appointment of a Suitable, Qualified and Competent Service Provider (Buyer) to Manage The Design, Manufacturing and Production of Retail-Ready Merchandise For Dmsa Museum Shops 2021-02-12 11:00 DMSA 010/ 2020
Appointment of an Experienced Ict Accredited Service Provider To Make Provision For Servers, Migration of Data (To O365), Data Backups, Datacentre Controls, Email Hosting, Hosted Pabx and Email Archiving For Ditsong Museums of South Africa (DMSA) 2021-02-12 11:00 DMSA 009/ 2020
Disposable Face Masks 2021-02-19 11:00 0010444247
Rendering of A Cremation and Burial Service Of Pauper and Destitute Decedents For Western Cape Government: Department of Health For a Period Of Three (3) Years 2021-02-19 11:00 WCGHSC 0246/ 2020
Limited (Sanral) Invites Tenders For The Reseal And Overlay On National Route N4 Section 11 And 12 Between Rebecca Street (Km 10.0) And Pelindaba (Km 11.29). 2021-02-19 11:00 SANRAL N.004- 112- 2017/ 1R
Appointment of a panel of training providers for provision of training, skills development programmes for in Pretoria, Durban and Cape Town for a period of three (3) years 2021-02-19 11:00 PO 2020/ 21: 001
Supply, install and configure a Next Generation Firewall (NGFW) and a Unified Threat Management (UTM) End to End Managed Service to Statistics South Africa (Stats SA) for a period of thirty-six (36) months 2021-02-12 11:00 RFB 2348/ 2020
Appointment of a Service Provider to conduct anti - corruption survey in Local Government for 97 Municipalities. 2021-02-12 11:00 RFP: 003/ 01/ 2021
Appointment of a Service Provider for a Provision of Employee Wellness Services programme to the Special Investigating Unit (“SIU”) for a period of three years (3) with an option to renew for a further period of two (02) years 2021-02-12 11:00 RFP: 002/ 01/ 2021
Panel Of Recruitment Agency 2021-02-12 12:00 SAT 186/ 21
Appointment of a Service Provider for the Provision Of Customised All-Risk Commercial Insurance Services At South African Tourism (Sat) Head Offices In 90 Protes Road, Chislehurston, Sandton for a period of thirty-six (36) months 2021-02-15 12:00 SAT188/ 20
The South African Social Security Agency hereby invites Service Providers for the change management capability 2021-02-12 11:00 SASSA: 55- 20- CEO- HO
South African Civil Aviation Authority (SACAA) currently want to invite a firms of attorneys to submit proposals to enable them to be considered in the process of appointment of the SACAA panel of attorneys 2021-02-12 11:00 SACAA/ PA/ 0005/ 2020- 2021

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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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