Issue Date: 
Thursday, October 31, 2019

Reasons why Joint Ventures fail

By Werner van Rooyen, Director of HowToTender (Pty) Ltd which specializes in tender consulting and tender training.

There are many reasons why Joint Ventures fail and five of the most common reasons are:

  1. Lack of a proper Joint Venture Agreement.  The importance of a proper JV Agreement cannot be emphasized enough.  Ensure that you have a proper contract in place that covers the entire foundation of your JV.
  2. Lack of finance.  If one of the parties to the Joint Venture is struggling financially it can be the downfall.  The simple reason is that the struggling partner will drain the Joint Venture, not allowing the it to build up capital for challenging times or future expansions.
  3. Control issues.  In any relationship you will always find that someone needs to be the leader or the decision maker.  A Joint Venture is the same – somebody needs to be in control.  Ensure that the correct leadership is appointed.
  4. Compatibility.  Sometimes in the rush of securing a tender a business owner will go into a Joint Venture with another business owner who does not have the same values and ethics.  This is a dangerous mistake.  Remember that you have established a certain way of doing business and that you have invested a lot in building the ethics in your business.  Ensure that the Joint Venture partner that you sign up with is compatible with your policies of running a business.
  5. Unrealistic expectations.  Ensure that all role players are on the same page when it comes to the Joint Venture’s successes.  There must be clear indicators on the chances of winning a tender as well as the expected profits to be made after the awarding of a tender and the completion of the tender.  All the parties involved must be briefed on the expected profits so that there are no unrealistic expectations from any of the parties involved.

If you tend to these five critical areas in your Joint Venture the chance for it to succeed will increase immensely.

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 https://howtotender.co.za/tender-expert-form/

Contact us at wernervr@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.
Appointment of a service provider to manage the implementation of expanded public works programme (EPWP) on school food garden project and Agriparks within the Gauteng Department Of Agriculture and Rural Development (gdard) for a period of thirty- six (36) months 2022-02-11 11:00 GT/GDARD/007/2022
Organising, managing and hosting a virtual Agri-Food Fest event 2022-02-11 11:00 GT/GDARD/006/2022
Appointment of service provider for supply and delivery of agricultural production inputs for subsistence producers within Gauteng Province for a period of thirty-six (36) months 2022-02-11 11:00 GT/GDARD/008/2022
Supply and delivery of office stationery for Gauteng Provincial Government (GPG) for a period of 36 months 2022-02-11 11:00 GT/GPT/002/2022
Provision of vehicle parking space for the Gauteng Department of e-Government for a period of 36 months 2022-02-11 11:00 GT/GDeG/001/2022
Integrated Waste Management Services at Cape Town International Airport 2022-02-14 12:00 CIA 6753/2021/RFP
Provision of Upgrade and Maintenance of College Website 2022-02-10 12:00 CO 22/02 O
Supply and delivery of protective clothing and equipment for a period of three years 2022-01-28 12:00 8/2/RNM0334
Provision of internal audit, risk and performance management system for a period of 36 months 2022-02-04 12:00 8/3/1-37/2021
Electrification of households at Dihlabaneng Turnkey 2022-02-07 12:00 Lim473/Dihlabaneng-Elect/21/22/25
Appointment of a Service Provider(S) to Render Guarding Services at The South African Social Security Agency (SASSA) Limpopo Region for a period of thirty six (36) months 2022-02-04 11:00 SASSA: 46-21-CS-LP
The supply and installation of 555.531m fence around the Zenzo Multipurpose Centre in KZN 2022-02-11 10:00 CORP 5615 - R
Provision of screening and verification services for GMM employees for a period of 36 months 2022-02-04 12:00 8/3/1-12/2021
Construction of Manyelrti to Mamone Central Internal Street 2022-02-07 12:00 LIM473/Mamone-road/21/22/24
Construction of Mochadi road and bridge 2022-02-07 12:00 LIM473/Mochadi-Road/21/22/23
Appointment of service provider for the supply, delivery, installation and maintenance of a chemical dosing pump including the wash and rinse aid chemicals for the hood-type dishwasher for a period of twenty-four (24) months to iThemba Labs, Faure, Western Cape 2022-02-04 11:00 iLABS/RFQ 2021/22:182
Supply, delivery, installation and commissioning of automated fluorescence microscope 2022-02-17 12:00 2021/056(a)
Supply and Delivery Of an Industrial Video-Scope 2022-02-17 12:00 2021/030(a)
Business insurance for a period of 12 months 2022-01-28 11:00 REQ0004252
Petrol 93 Unleaded 2022-01-27 11:00 ‪‪‪RFQ-012495

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

Free Keyword search

Search all tender notices for FREE!

No subscription or registration required!

You can also search by the reference of the the tender.

Advanced search

Search by Issuer, Region or Sector, individually, or using any combination of the three.