How to Form a Winning Joint Venture for Tenders
Don't have the capacity or the grade? A Joint Venture (JV) might be your answer. Learn the legal and practical steps to forming a JV that wins.
Why Go It Alone?
Government tenders are getting bigger. The requirements for machinery, capital, and track record are increasing. Small businesses often hit a ceiling. The Joint Venture is the ladder over that ceiling.
The 3 Rules of a Good JV
- Trust but Verify: You are financially liable for your partner. If they mess up, you both lose.
- Clear Split of Work: Avoid 'We will both manage'. That leads to conflict. 'Party A does foundation, Party B does brickwork' is better.
- One Leader: The client (government) wants one point of contact. Designate a Lead Partner.
The CIDB Magic Trick
Did you know that two Grade 4 companies can bid for a Grade 5 project? Or that three Grade 2s can bid for a Grade 4? This is the power of the 'Consolidated Grading'.
Our JV Suite calculates this instantly. You enter the grades of all partners, and it tells you the maximum tender value you can target together.
The BBBEE Math
Your BBBEE level is also recalculated. It's not an average; it's a weighted calculation based on the split of the JV. If you are Level 1 (51% share) and your partner is Level 4 (49% share), your JV will likely be a Level 2 or 3. Use the tool to check before you commit.
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Based on this article's topics, here are some current tenders that might interest you
MULTI-DISCIPLINARY PROFESSIONAL SERVICES TENDER TO SUPPORT WATER AND SANITATION ENGINEERING AND INSTITUTIONAL AND ORGANISATIONAL CAPABILITY DEVELOPMENT PROJECTS AND IMPLEMENTATION OF THE CITY OF CAPE TOWN WATER STRATEGY (WINNER-TAKES-ALL APPOINTMENT PER SERVICE CATEGORY) Category A: Engineering Services (Infrastructure, Systems and Engineering) Category B: institutional and Organisational Capability Development Projects (including Human Capital, Change Management and Governance)
APPOINTMENT OF A SERVICE PROVIDER FROM SITA RFB1183 FOR THE ESTABLISHMENT OF AN ICT PORTFOLIO MANAGEMENT OFFICE (PMO) TO DELIVER THE DIGITAL TRANSFORMATION STRATEGY (MICROSOFT-BASED PORTFOLIO MANAGEMENT) FOR A PERIOD OF THIRTY-SIX (36) MONTHS.
APPOINTMENT OF A STRATEGY ADVISORY PARTNER TO DELIVER A DIGITAL TRANSFORMATION AND ARTIFICIAL INTELLIGENCE STRATEGY
THE PROFESSIONAL IT SERVICES TO BE PROVIDED TO NTCSA TO DEVELOP A COMPREHENSIVE DIGITAL TRANSFORMATION STRATEGY.
FOR THE PROVISION OF PROFESSIONAL SERVICES FOR A SPECIALIST CONSULTANT TO DEVELOP AN ENERGY TRANSITION STRATEGY FOR TRANSNET PIPELINES
APPOINTMENT OF A SERVICE PROVIDER/CONSULTANT TO DEVELOP A COMPREHENSIVE NATIONAL DRY PORT STRATEGY FOR A PERIOD OF 24 MONTHS
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How to Form a Winning Joint Venture for Tenders
Don't have the capacity or the grade? A Joint Venture (JV) might be your answer. Learn the legal and practical steps to forming a JV that wins.