Issue Date: 
Thursday, January 31, 2019

8 things you must know about Joint Ventures

By Werner van Rooyen

31 January 2019

One of the most popular types of business arrangements that are being used by South Africans, in the Tender environment, is Joint Ventures.

There are eight things that you must know about Joint Ventures:

  1. Definition

A Joint Venture is a strategic cooperation where two or more people and/or companies agree to contribute goods, services and/or capital to a common commercial enterprise for the purpose of a specific tender or request for proposal.

  1. Difference between a Joint Venture and a Private Company

The moment two or more people and/or companies come together; to do business together it can be construed of being a Joint Venture. But once these parties to this business register a formal private company then it is no longer a Joint Venture.

  1. Difference between a Joint Venture and a Partnership

A Joint Venture often sounds much like a Partnership but the main difference between a Joint Venture and a Partnership is that the members of a Joint Venture have come together for a specific Tender or Request for Proposal, while a Partnership is usually formed between two or more people to run a business for an unlimited period of time.

  1. Share expenses

Each member of a Joint Venture only share the expenses of the specific Tender for which the Joint Venture was established.

  1. Income Tax

Each member of a Joint Venture is liable for their own Income Tax. If the Joint Venture is profitable the net income of the Joint Venture will be distributed to each member of the Joint Venture according to their percentage contribution towards the Joint Venture. The members will then be tax in their individual capacity or if the member of the Joint Venture is company, then the gains of the Joint Venture will form part of the income of the company and will be taxed according to company tax legislation.

  1. Ownership

Very important to realize is that each member of the Joint Venture retains ownership of their own personal fixed assets as well as their current assets.

  1. Bank account

It is important to open a separate bank account for the Joint Venture. You do not want your private funds to get entangled with the funds of the Joint Venture.

  1. Set of accounts

Always keep a separate set of accounts for the Joint Venture. You don’t want the Joint Venture transactions to get mixed up with your own transactions or those of your company.

So remember, before you dismiss a Tender or Request for Proposal as undoable, think of teaming up with other businesses and/or people in the form of Joint Venture and bid through the Joint Venture.

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 www.howtotender.co.za. Please contact Estelle at Estelle@howtotender.co.za should you require more information.

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.
Appointment of Seven (07) Service Providers for Routine Road Maintenance per Cluster in Polokwane Municipal Area Plus Two (02) Backup Service Providers for all clusters (Multi Year)(3 YEARS) 2019-04-24 10:00 PM118/2018
Appointment of Seven (07) Service Providers for Regravelling of Roads per Cluster in Polokwane Municipal Area Plus Two (02) Backup Service Providers for all clusters (Multi Year)(3 YEARS) 2019-04-24 10:00 PM119/2018
Transport of Green Waste from Sedgefield to Old Place Garden Refuse Site 2019-03-26 12:00 371/2018/19
Provision of accredited contract administration and management training for the municipal environment 2019-03-26 12:00 369/2018/2019
Preferred service providers for technical services (specialised bulk water systems) for COEGA Development Corporation (PTY) Ltd 2019-04-08 12:00 CDC/ 70/ 19
Preferred service providers for technical services (electrical low voltage reticulations) for COEGA Development Corporation (PTY) Ltd 2019-04-08 12:00 CDC/ 115/ 19
Preferred service providers for technical services (emergency power (generators and UPS’s)) for COEGA Development Corporation (PTY) Ltd 2019-04-08 12:00 CDC/ 122/ 19
Preferred service providers for technical services (plumbing) for COEGA Development Corporation (PTY) Ltd. 2019-04-08 12:00 CDC/ 113/ 19
Preferred service providers for technical services (electrical medium voltage reticulations) for COEGA Development Corporation (PTY) Ltd (CDC) 2019-04-08 12:00 CDC/ 67/ 19
Call for expression of interest: Supply and delivery of perishable provisions and groceries, pest control services and disposal of waste food at seven (7) management areas 2019-03-29 11:00 REFERENCE NUMBER 1/ 2019
Outright purchase or placement for cassette printers with 2D barcode scanners for the anatomical pathology laboratory, Charlotte Maxeke Hospital for a period of five (5) years. 2019-04-04 11:00 RFB 165/ 18/ 19
Placement and maintenance of fully automated fluorescent slide processor and fluorescent microscope for a period of five(5) years at Tswane Hospital 2019-04-05 11:00 RFB 166/ 18/ 19
Placement and maintenance of Luminex immune based system of tissue typing and antibody screen for a period of five(5) years at Tswane hospital 2019-04-05 11:00 RFB 167/ 18/ 19
Procure a pathogen identification system for public health laboratory, infection services laboratory for a period of five (5) years at Charlotte Maxeke Hospital 2019-04-04 11:00 RFB 160/ 18/ 19
Bid for the supply and delivery of theatre consumables to all hospitals/institutions under the control of the Department of Health, Western Cape Government for a three year period 2019-04-12 11:00 WCGHCC041/ 2018
Supply and delivery of one optical fibre reflectometer to characterise optical fibre networks and photonic subsystems used for radio astronomy applications including all test peripherals required by the reflectometer, calibration, and routine servicing support. The contract is for a period of five years 2019-04-05 11:00 NRF SARAO SKRF 001 2019
(Re-advertisement) Supply, delivery and commissioning of electrical equipment and panels for NQF level 3, 4 & trade test 2019-04-12 11:00 LEPTVETCOL2019/ 001
Supply, delivery, installation, commissioning and training of a variable energy 70MEV H- cyclotron and associated beam lines for isotope production and the provision of spare parts at iThemba Labs, Cape Town, South Africa. 2019-05-10 11:00 NRF/ iThemba LABS/ 2019 - 20: 01
The South African National Roads Agency SOC Limited (SANRAL) invites tenders for the appointment of a Service Provider for the provision of Consulting Engineering Services for the Special Maintenance of Structures and Drainage on an ad-hoc basis on the National Route network in the Western and Northern Cape. 2019-04-12 14:00 X005- 021- 2018/ 1F
Panel of service providers to provide an electronic / web based or application solution access to credit and background information of individuals, companies , fixed properties etc. and ability to conduct searches on such information to the NPA for a period of three (3) years 2019-04-15 11:00 NPA 14- 18/ 19

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10 things to remember when you tender

By Werner van Rooyen

31 January 2019

There are many things that you as a small business owner must remember when you respond to a tender and sometimes responding to a tender can be overwhelming. Experience has taught me that there are some important things to remember when responding to a Tender and there are some less important things to remember when responding to a Tender.

Here are ten of the important things to remember when responding to a Tender. Please remember that all ten of these items mention here are equal... Read More

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