Issue Date: 
Thursday, October 31, 2019

Types of Joint Ventures    

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

The structure of the joint venture should set out the nature of your partnership.  There are two main types of agreements:

  1. If the joint venture is a business, it will be an incorporated joint venture.  This type is not recommended when one wants to respond to a competitive bid or a request for quotation.
  2. A co-operative arrangement between two existing parties that keep their separate identities is called a contractual joint venture.  This type of joint venture is the safest option to use in responding ton tenders.

In both types mentioned above a Joint Venture Agreement (JVA) is crucial in managing the joint venture.

The joint venture agreement should include:

  • Objectives: keep it simple and try to have no more than five objectives.
  • Funding: both parties need to specify how much funding they will put into the venture, and for how long.
  • Assets: list any assets or employees that will be transferred throughout the duration of the joint venture.
  • Intellectual property: state who owns any intellectual property created during the joint venture and how any financial benefits will be distributed.
  • Roles: clearly indicate who has responsibility for the processes involved during the joint venture.  If you are setting up a new company, the composition of the Board – e.g. Chief Executive and Chief Financial Officer - should be identified and voting rights agreed.
  • Agreement: incorporated joint venture agreements may also need to include a shareholders’ agreement, covering issues such as dividend policy and how the management accounts will be produced and made available.
  • Third parties: any consents or approvals needed from third parties should be explained in the agreement.
  • Finances: state how any profits or losses will be divided between parties.  Liabilities must also be clearly listed.
  • Disputes: specify a mechanism by which any disputes can be resolved, such as arbitration by an agreed third party.
  • Duration: specify how long the joint venture would last.  If it is open-ended the agreement should state the period of notice that each party should give if they want to withdraw.
  • Confidentiality: you may wish to consider a confidentiality or non-disclosure agreement.
  • Principles: include a statement that is not legally binding on the two parties.  Instead it should be a statement of principles – enabling the parties to negotiate a final, legally definitive agreement in good faith.

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.
Placement of next generation sequencer for a period of (5) five years for Virology Doctor George Mukhari with service and maintenance. 2020-10-09 11:00 RFB187/ 19/ 20
Standard Laptops 2020-10-13 11:00 0010430697
Renewal of Mimecast licenses for KwaZulu-Natal Department of Human Settlement for a period of three (3) years. 2020-10-09 11:00 RFB 2130/ 2020
RFB 2226/2020: Supply, install and configure an electronic mail secure archive and compliance solution to Sita with maintenance and support for a period of five (5) years 2020-10-09 11:00 RFB 2226- 2020
Supply and delivery of Lidar camera (with maintenance and spares contract) and post-processing software (including updates) for the SAEON Elwandle Node’s existing Airborne Remote Sensing Platform in Port Elizabeth 2020-10-23 11:00 NRF/ SAEONLIDAR/ 12/ 2020- 21
Supply and delivery of 9mm and 5.56mm ammunition to the Public Transport Enforcement Services Directorate for a 3 year project 2020-10-09 11:00 ZNB0068/ 19T
Appointment of a suitable service provider for a once-off supply, delivery and installation of office furniture at the Office of the valuer General Centre Walk building. 2020-10-09 11:00 OVG (03) 2020/ 21
Expression of interest in the appointment of service providers to be included in a database for the replacement of defaulting service providers and allocation of new clusters in the provision of food items [perishables and non–perishables] to feeding schools within Ugu District under the National School Nutrition Programme (NSNP) for KwaZulu-Natal Department of Education for the duration of the current tender ZNB 0799-0958 E/ 2019/2020 2020-10-09 11:00 ZNB 0007 E/ 2020/ 2021
Expression of interest in the appointment of service providers to be included in a database for the replacement of defaulting service providers and allocation of new clusters in the provision of food items [perishables and non–perishables] to feeding schools within Umlazi District under the National School Nutrition Programme (NSNP) for KwaZulu-Natal Department of Education for the duration of the current tender ZNB 1325-1450 E/ 2019/2020 2020-10-09 11:00 ZNB 0010 E/ 2020/ 2021
Expression of interest in the appointment of service providers to be included in a database for the replacement of defaulting service providers and allocation of new clusters in the provision of food items [perishables and non–perishables] to feeding schools within iLembe District under the National School Nutrition Programme (NSNP) for Kwazulu-Natal Department of Education for the duration of the current tender ZNB 0249-0379 E/ 2019/2020 2020-10-09 11:00 ZNB 0004 E/ 2020/ 2021
Expression of interest in the appointment of service providers to be included in a database for the replacement of defaulting service providers and allocation of new clusters in the provision of food items [perishables and non–perishables] to feeding schools within Umzinyathi District under the National School Nutrition Programme (NSNP) for KwaZulu-Natal Department of Education for the duration of the current tender ZNB 1451-1595 E/ 2019/2020 2020-10-09 11:00 ZNB 0011 E/ 2020/ 2021
Expression of interest in the appointment of service providers to be included in a database for the replacement of defaulting service providers and allocation of new clusters in the provision of food items [perishables and non–perishables] to feeding schools within Umgungundlovu District under the National School Nutrition Programme (NSNP) for KwazZulu-Natal Department of Education for the duration of the current tender ZNB 0959-1127 E/ 2019/2020 2020-10-09 11:00 ZNB 0008 E/ 2020/ 2021
Expression of interest in the appointment of service providers to be included in a database for the replacement of defaulting service providers and allocation of new clusters in the provision of food items [perishables and non–perishables] to feeding schools within Pinetown District under the National School Nutrition Programme (NSNP) for KwaZulu-Natal Department of Education for the duration of the current tender ZNB 0600-0798 E/ 2019/2020 2020-10-09 11:00 ZNB 0006 E/ 2020/ 2021
Expression of interest in the appointment of service providers to be included in a database for the replacement of defaulting service providers and allocation of new clusters in the provision of food items [perishables and non–perishables] to feeding schools within King Cetswayo District under the National School Nutrition Programme (NSNP) for KwaZulu-Natal Department of Education for the duration of the current tender ZNB 0380-0599 E/ 2019/2020 2020-10-09 11:00 ZNB 0005 E/ 2020/ 2021
Expression of interest in the appointment of service providers to be included in a database for the replacement of defaulting service providers and allocation of new clusters in the provision of food items [perishables and non–perishables] to feeding schools within Amajuba District under the National School Nutrition Programme (NSNP) for KwaZulu-Natal Department of Education for the duration of the current tender ZNB 0035-0126 E/ 2019/2020 2020-10-09 11:00 ZNB 0002 E/ 2020/ 2021
Expression of interest in the appointment of service providers to be included in a database for the replacement of defaulting service providers and allocation of new clusters in the provision of food items [perishables and non–perishables] to feeding schools within Harry Gwala District under the National School Nutrition Programme (NSNP) for KwaZulu-Natal Department of Education for the duration of the current tender ZNB 0127-0248 E/ 2019/2020 2020-10-09 11:00 ZNB 0003 E/ 2020/ 2021
Expression of interest in the appointment of service providers to be included in a database for the replacement of defaulting service providers and allocation of new clusters in the provision of food items [perishables and non–perishables] to feeding schools within Umkhanyakude District under the National School Nutrition Programme (NSNP) for KwaZulu-Natal Department of Education for the duration of the current tender ZNB 1128-1324 E/ 2019/2020 2020-10-09 11:00 ZNB 0009 E/ 2020/ 2021
Expression of interest in the appointment of service providers to be included in a database for the replacement of defaulting service providers and allocation of new clusters in the provision of food items [perishables and non–perishables] to feeding schools within Uthukela District under the National School Nutrition Programme (NSNP) for KwaZulu-Natal Department of Education for the duration of the current tender ZNB 1451-1595 E/ 2019/2020 2020-10-09 11:00 ZNB 0012 E/ 2020/ 2021
Expression of interest in the appointment of service providers to be included in a database for the replacement of defaulting service providers and allocation of new clusters in the provision of food items [perishables and non–perishables] to feeding schools within Zululand District under the National School Nutrition Programme (NSNP) for KwaZulu-Natal Department of Education for the duration of the current tender ZNB 1451-1595 E/ 2019/2020 2020-10-09 11:00 ZNB 0013 E/ 2020/ 2021
Call for expression of interest to provide various off-the-shelf eLearning courses 2020-10-07 15:00 AUC/AHRM/C/006

Pages

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.