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.
Discretionary Grant Advert 2nd Funding Window 2019/2020 2019-06-18 11:00 RFQ/ SASSETA/ 201920120
Cape Town: parliamentary precinct: official office accommodation: provide integrated facilities management services.(2019-2024) appointment of consultants: quantity serverying, electrical & mechanical engineers, civil & structural engineers, health and safety agent. 2019-06-14 11:00 CPTC 004/ 19
Appointment of Board Secretariat Services until 31 March 2020 2019-06-14 11:00 RFP/ SASSETA/ 201920113
Provisioning of Productivity Study/ Assessment and other related services to the RTMC 2019-06-18 11:00 RTMC BID 03/ 2019/ 20
Provision of Security services to the RTMC Midrand offices 2019-06-17 11:00 RTMC BID 01/ 2019/ 20
Cape Town: Provision of integrated facilities management services for parliamentary residential accommodation for a five year period (2019-2024): Appointment of consultants: quantity surveying, electrical & mechanical engineers, civil & structural engineers, health & safety agent. 2019-06-14 11:00 CPTC003/ 19
Appointment of a panel of service providers to provide fraud risk management services to the NYDA for a period of three (3) years. 2019-06-19 11:00 NYDA2019/ 01/ IA
Appointment of a Panel of Service Providers for the National Treasury to Source the Services of Editors for Publications for a period of three Years 2019-06-14 11:00 NT005- 2019
24 months term contract for transportation of members of parliament and sessional officials in the three parliamentary villages. 2019-06-14 11:00 CPTSC 01/ 19
Appointment of a Service Provider to Implement an On-Going Solution for The Management of Emolument Attachment Orders Granted Against Public Servants and a Capacity Building Programme for a Period of 24 Months 2019-06-14 11:00 NT004- 2019
Appointment of a Decor Service Provider for The World Economic Forum on Africa Mokete 2019 to Be Hosted at ICC In Cape Town. 2019-06-14 11:00 NT003- 2019
Repair and maintenance of Generators at Limpopo High Court for 24 months 2019-06-18 11:00 PLK19/ 07
Appointment of a service provider for rendering of co-sourced internal audit services for the National Lotteries Commission for a period of three (3) years 2019-06-26 11:00 NLC/ 2019- 10
Repair and maintenance of HVAC System at Limpopo High Court for 24 months 2019-06-18 11:00 PLK19/ 06
Appointment of Service provider for Events Management (Golden Shield Heritage Awards) 2019-06-26 11:00 NHC/ 01/ 2019/ 20
Repair and maintenance of lifts at Limpopo High Court for 24 months 2019-06-18 11:00 PLK19/ 05
Bloemfontein Sandf: Tempe 1 Sa Tank Regiment: Upgrading of Facility/ Infrastructure (Kitchen) and Replacement of Kitchen Equipment: (Architectural Services) 2019-06-18 11:00 BL19- 009
Bloemfontein Sandf: De Brug Mobilisation Centre: Upgrading of Facility/ Infrastructure (Kitchen) and Replacement of Kitchen Equipment: (Architectural Services) 2019-06-18 11:00 BL19- 010
Postmasburg Magistrate Court: Provisioning of cleaning services for 36 months. (1208.14m²) 2019-06-14 11:00 PF17/ 2019
Olifantshoek Magistrate Court: Provisioning of cleaning services for 36 months. (531.00m²) 2019-06-14 11:00 PF18/ 2019

Pages

The 8 steps in the Tender Adjudication process

By W van Rooyen

www.howtotender.co.za

31 January 2019

It is important to understand the Adjudication process when one responds to a Tender or Request for Proposal. If you have these 8 steps under control when responding to tenders, changes are good that you will proceed to the next round.

Here are 8 steps in the adjudication process that Organs of State will most often follow in determining which bidder will win the tender:

  1. Opening... Read More
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