Issue Date: 
Monday, March 16, 2015

Consortiums Versus Joint Ventures

It is common business practice to form a Joint Venture when one respond to a tender, especially if you do not have all the expertise required by the specific tender. But Joint Ventures can be complicated to form and to find the correct partner for the Joint Venture can be challenging. There is an alternative option. You could go into a consortium when responding to a tender.

A consortium is an association of two or more individuals, companies or organisations with the objective of participating in a common activity, such as responding to a tender, or pooling their resources to achieve a common goal. Within the consortium, each participant retains their separate legal status and the consortium's control over each participant is generally limited to activities involving the joint endeavour, particularly the division of profits. A consortium is formed by contract.

A Joint Venture can be described as a business enterprise where two or more participants come together to share their expertise in order to win a specific contract for a set period of time. A Joint Venture is a separate entity and is not part of the individual participant's own enterprise. Therefor a Joint Venture must have its own set of rules by which it is managed and this is called a Joint Venture Agreement.

The key reasons to form a joint venture or consortium may be that it will provide your company with new opportunities to respond to a tender or request for proposal and secure tenders which would not otherwise be available to you due to your company's size and scale.

Before entering into either a joint venture or consortium agreement, all parties need to understand what they want from the relationship. Both joint ventures and consortiums have risks and benefits: the most important thing is to take account of what your objective is in entering into the relationship and then to weigh up which one is more appropriate to help you win a tender.

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 Werner at werner@how2tender.com

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.
The provision of clinker removal and rope access at Camden Power Station for a period of 36 months 2019-07-29 10:00 MPGXC005631
Panel: Client Decor Services 2019-07-08 12:00 CTICC 038/2019 PANEL: CLIENT DÉCOR
Provision of collecting, stripping and assessment of medium voltage motors including on site white meta bearing repairs of selected Medium Voltage Motors at Arnot Power Station 2019-07-25 10:00 MPGXC 005619
Germiston Station Minor Building Works Upgrade 2019-07-08 11:00 RFQ 02-1911150/06/2019
The province of KwaZulu-Natal, Department of Transport, invites tenders of Vukuzakhe Contractors for the Betterment and Regravelling of L2602 Contract 1 in the Ulundi Municipality within the Zululand District. 2019-08-13 11:00 ZNT373/ C266/ 2111/ S/ 1/ 2018T
Renovational Services for the National Health Laboratory Service (NHLS) at Pietersburg Hospital Lab, Polokwane 2019-07-18 11:00 RFB021- 19- 20
Renovation Services for the National Health Laboratory Service (NHLS) at Bongani Provincial Hospital, Welkom 2019-07-17 11:00 RFB0018- 19- 20
General maintenance including roof replacement; 25 Voortrekker Road; Murraysburg. 2019-07-24 11:00 G003/ 19
Water and sanitation programme phase 3A at Zamangothando Secondary School, Khawuleza PS, Sishongani PS and Induduzo PS, Ulundi 2019-07-26 11:00 ZNTU 02480 W
Water and sanitation programme phase 3A at Maphovela High School, Ulundi 2019-07-26 11:00 ZNTU 03956 W
Phase 14 Storm Damage: Repairs and Renovations to Storm Damaged Schools Throughout The Province of KwaZulu Natal 2019-07-22 11:00 VARIOUS
The Construction of the Apli Cold Storage Facility, Depot and Packhouse 2019-07-15 12:00 CDC/ 327/ 19
NDPW:Rehabilitation and Construction of the New Office block at 85 Anderson Street,Johannesburg (Heritage) 2019-08-06 11:00 JHB.19/ 20
TKZN intends to appoint a marketing services agency to provide integrated marketing services aligned to the TKZN’S 2014-2020 strategy and annual performance plan for the period of twelve months 2019-07-19 12:00 TKZN NO: 03/ 2019
TKZN intends to appoint a suitable service provider to provide Public Relations and Communications support to the organization for the period of twelve months. 2019-07-19 12:00 TKZN NO: 01/ 2019
TKZN intends to appoint a suitable service provider to supply, install, develop, configure and maintain the SAP Business one application system including Microsoft SQL server database 2019-07-19 12:00 TKZN NO: 04/ 2019
CapeNature seeks the expertise of a suitable service provider for the supply, delivery and installation of Atmospheric Water Generators with a solar solution at the Anysberg Nature Reserve, CIDB and Local content conditions apply 2019-07-26 11:00 WCNCB 01/ 06/ 2019
Appointment of a service provider to manage Media Relations and Communication services on behalf of the Broad-Based Black Economic Empowerment Commission (‘the B-BBEE Commission’) for a period of 2 years. 2019-07-12 11:00 dti 06/ 19- 20
Appointment of a service provider to supply, install, configure and maintain a Telephone Management and Switchboard System for the Office of the Valuer-General on a lease basis for a period of 36 Months 2019-07-12 11:00 OVG (03) 2019/ 20
TKZN intends to appoint a Social Media Management Agency to provide social media services for a period of twelve months 2019-07-19 12:00 TKZN NO: 02/ 2019

Pages

2 items that determine tender pricing

Article by Werner van Rooyen

www.howtotender.co.za

31 January 2019

Many bidders that respond to tenders struggle when it comes to calculating a price for a specific tender. One of the reasons for this is that a large number of Small Business Owners are usually new to the tender process and therefore they lack the necessary experience to price their bids correctly.

Without getting into the fundamentals of accounting there are two basic items that determine your... Read More

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