Issue Date: 
Monday, January 14, 2019

10 Features of a good Joint Venture Agreement

By W van Rooyen

www.howtotender.co.za

A Joint Ventures is a good business idea to compete for tenders if one does not have all the necessary expertise that are required from a specific tender. The thing to remember though is that you must have a solid Joint Venture Agreement in place for your Joint Venture. A good, rock solid Joint Venture Agreement will protect the participants to the Joint Venture.

 Here are 10 features that any good Joint Venture Agreement must have:

  1. The purpose of the joint venture must be clearly defined;
  2. The percentage participation of all the members must be clearly stated. Remember that the members share in the profits and losses of the Joint Venture and this must be indicated as such.
  3. There must be a paragraph that provides for the formation of a management body for the joint venture;
  4. There must be consensus between the members to ensure that the activities of the Joint Venture will not be unjustifiably slowed down by failure to achieve it;
  5. The dispute resolution must be effective, easy and cheap to execute;
  6. There must be clear and comprehensive guidelines that sets out the contributions to be made by each member towards the activities of the joint venture in securing and executing the contract and should allocate monetary values to such contributions.
  7. All members must provide meaningful input to the management activities of the joint venture as well as policy making;
  8. There must be a safe guard to limit, as far as possible, any losses to the joint venture by the default of any Joint Venture member;
  9. The Joint Venture Agreement must be flexible enough to allow for joint ventures which differ in objectives, inputs by members and management systems;
  10. Last but not least the Joint Venture Agreement must be tender specific.

Make sure that your Joint Venture Agreement contains all these features. This will ensure that you are covered against most unforeseen contingencies.

You can find a Joint Venture Agreement on our website at www.howtotender.co.za. You will also find our newly revised Tender Manual there. The Tender Manual will teach you all you need to know to respond to tenders correctly and hopefully successfully.

To learn more about this and many other tender conditions please attend one of our How-to-Tender workshops. For more information on the tender courses please email Estelle at Estelle@howtotender.co.za.

This article was written by Werner van Rooyen, Director of HowToTender (Pty) Ltd. which specializes in tender consulting and tender training.

Title Closing Date Tender No.
Tender for heritage study: De Rust, Dysselsdorp & Oudtshoorn 2019-03-25 12:00 TD-01/02/19
Provision and administration of an electricity and water prepayment vending system for a contract period ending 30 June 2022 2019-03-25 11:00 TD-05/02/19
Supply, delivery, assembly and installation of various items of furniture and accessories for Thusong Centre in Motherwell. 2019-02-28 11:00 SCM/19-97/G
Expression of interest for the supply and delivery of PPE. 2019-03-14 11:00 SCM/19-139/G
Document: Archiving: Learners and Drivers licences. 2019-03-14 11:00 SCM/19-114/S
Standards of Generally Recognised Acccounting Practices (GRAP) financial reporting training service provider for a two year period 2019-02-28 12:00 SAICA0032019
Provision of Security Services at Various ECDC Owned Premises for thirty Six months (3 years) 2019-03-11 12:00 ECDC/ELN/108/012019
Supply and delivery of Road Construction Material for Taweni Access road 2019-03-11 12:00 IHLM/87/01/2018-19/TS
The appointment of a service provider for Finance, Human Resources and Administration services for a period of 12 months. 2019-02-28 14:00 AIP-01/2019
Upgrading of Server Infrastructure and Development of Unified communication 2019-03-20 12:00 019/2018/19
The appointment of a contractor to design, upgrade, install and commission the control system at the aquarium of the National Zoological Garden in Pretoria. 2019-03-04 11:00 SANBI NZG: 325/ 2019
The appointment of a contractor for remedial work to various existing structures including roofs, aquatic mammal pools, and aquarium tanks at the National Zoological Gardens in Pretoria. 2019-03-04 11:00 SANBI NZG: 327/ 2019
The appointment of a contractor for the design and upgrade of existing gravel roads at the Mokopane Biodiversity Centre in Mokopane, Limpopo. 2019-03-05 11:00 SANBI NZG: 330/ 2019
Appointment of service provider for the procurement new fleet 4x4 double cabs(03) and (06) x sedans for the South African Diamond and Precious Metals Regulator 2019-03-15 11:00 SADPMR03/ 2018/ 19
Request to procure service providers for the purposes of headhunting for executive and senior management positions for a period of three (03) years 2019-03-08 11:00 RFA 1892/ 2018
Appointment of a suitable service provider to conduct situational analysis of successful skills programmes offered by SETA Quality Assurance Partners (QAPS) 2019-03-08 11:00 PUR 6000/ 8
The appointment of a service provider to provide medical surveillance program for 1225 (one thousand two hundred and twenty five) consisting of 72 landfill employees and 1153 general workers over four (4) months. 2019-03-18 11:00 PU058/ 2018
The appointment of panel of service providers for the removal, cleaning and rehabilitation and/or eradication of illegally dumped non-toxic, non-objectionable solid waste and rubble on as and when required basis for thirty six (36) months period. 2019-03-15 11:00 PU047/ 2017
Appointment of service providers for insurance and administration of the subsidized motor transport scheme and the VIP vehicle fleet of the state for the period 1 April 2019 to 31 March 2024 2019-03-08 11:00 RT58- 2019
Invitation to provide catering and canteen services at national health laboratory service head office and Braamfontein office for the period of three (3) years. 2019-03-08 11:00 RFB 156/ 18/ 19

Pages

Tender Knowledge

By Werner van Rooyen

www.howtotender.co.za

31 January 2019

Sometimes I am surprised at how little business people in South Africa know about Tenders and the Tender Process. Simple things like terminology and general tender information are difficult for people to comprehend not to mention the Standard Bidding Documents and Tender Pricing.

Unbelievably there are still Entrepreneurs that thinks to respond to tenders are an actual business? You will find that these Entrepreneurs would... Read More

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