Issue Date: 
Wednesday, October 14, 2020

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 tender?

In choosing which business type to use (Joint Venture, Consortium or Sub-contracting) in responding to a bid depends on how many partners (if any) is needed to comply with the specific bid specifications.

The best option is to respond to a bid on your own. This is not always possible. There are many reasons, i.e. Sub-contracting criteria (30% Regulations), minimum B-BBEE levels, minimum Financial requirements, and the most common reason – Purchasing Authorities that combine goods and/or services that they think is one supply or product. Some bids specify that only Consortia may respond due to the complexity of the contract. All these factors will play a role in deciding which business type/tender vehicle bidders will use in responding to a specific bid.

Joint Ventures and Consortia are partnerships that is established to execute a tender. Both type of partnerships has their advantages and dis-advantages. You can find our articles describing the advantages and dis-advantages of both these business types here: https://howtotender.co.za/hints-and-tips/

The next question is: how many partners in Joint Venture or consortium? The general guideline is that Joint Ventures do not have more than 3 partners. Any number of partners above three will be better suited by forming a Consortium.

Sub-contracting is always a better option in complying with bid specifications than restricting yourself to one or more Joint Venture/Consortium partner/s. With sub-contracting the main contractor stays in control of the contract execution. It is easier to replace a sub-contractor than getting rid of a partner.

In some cases, bidders will find it necessary to establish a Joint Venture/Consortium and sub-contract a portion of the contract.

The answer to the question: When to choose a Joint Venture, Consortium or Sub-contracting will thus depend on all these factors mentioned above. Read the bid specifications carefully and make an informed decision in choosing partners and/or sub-contractors.

To learn more about this and many other tender conditions attend our “Become a Tender Expert” 2-Day workshops/webinars 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  estelle@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.
PNQ4 IT HARDWARE. 2021-05-20 10:00 PNQ4 IT HARDWARE
PNQ4 HARDWARE 2021-05-20 10:00 PNQ4 HARDWARE
PNQ4ELECTRICAL 2021-05-20 10:00 PNQ4ELECTRICAL
Supply , Delivery and Off-Loading of Toilet Paper and Hand Towels as From 01 July 2021 – 30 June 2024 2021-05-31 12:00 B/SM 94/21
Sampling and Testing of Potable and Waste Samples in The Stellenbosch Municipal Area for a Contract Period Ending 30 June 2024 2021-06-07 12:00 BSM 100/21
Additions and alterations for Community Development Offices in 21 Simonsberg Street, Stellenbosch 2021-06-07 12:00 B/SM 99/21
Provision of travel management services to the Buffalo City Metropolitan Development Agency Soc Ltd (BCMDA) for a period of 3 years 2021-06-14 12:00 BID 3 OF 2021
Underwriting & Management of Municipal Short Term Insurance & Risk Portfolio: Contract period: 1 July 2021 to 30 June 2022 2021-06-02 12:00 B/SM 102/21
Provision Of Professional Services for the Design, Tender Documentation and Contract Supervision For New Cells and Associated Infrastructure at The Stellenbosch Landfill 2021-06-14 12:00 BSM 98/21
Supply and Delivery Of 100w Lamps: 7258 2021-05-19 11:00 None
Supply and Delivery of Strapping: 10786 2021-05-19 11:00 None
Supply and Delivery of Advanced Multi-Meter. 2021-05-20 11:00 None
Supply and Delivery Of Frl 95 – 240 Mech Sc (5351) 2021-05-20 11:00 11657916
Supply and Delivery of Pole Mount Dome Miniature Circuit Breaker Cover Item: 540 2021-05-24 11:00 None
Tenders are invited for SANA CALIBRATION FOR TESTO SAVERIS 2 DATA LOGGER WIFI SYSTEM. 2021-05-20 11:00 CSQ04212236
Tenders are Invited for the Repair and Replace GC and GC-MS lines as per Specification, available at SCM:Acquisitions, Harrower Road Port Elizabeth. 2021-05-20 11:00 CSQ04212247
Tenders are invited for the Renovation of Extraction System for Chemical Woods as per Specifications, available at SCM: Acquisitions, Harrower Road, Port Elizabeth. 2021-05-20 11:00 CSQ04212247
Tenders are invited for Supply and Delivery of Laboratory Glassware as per Specification, Available at SCM: Acquisitions, Harrower Road, Port Elizabeth. 2021-05-20 11:00 GQ04212772
Tenders are invited for the Purchasing of Microbiological Laboratory Media as per Specification, Available at SCM: Acquisitions, Harrower Road, Port Elizabeth. 2021-05-20 11:00 GQ04212772
Request for Expression of Interest – Air Conditioning Consultancy Firm 2021-05-25 16:00 ADB/EOI/RDGS/2021/0076

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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