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.
Tags
Based on this article's topics, here are some current tenders that might interest you
APPOINTMENT OF A SERVICE PROVIDER FOR DEVELOPMENT OF ICT STRATEGY AND ICT GOVERNANCE FRAMEWORK
APPOINTMENT OF SERVICE PROVIDERS TO RENDER PROFESSIONAL SERVICES AS ENGINEERING CONSULTANTS FOR ELECTRICAL INFRASTRUCTURE PROJECTS ON A TURNKEY STRATEGY FOR THE PERIOD OF THREE (3) YEARS APPOINTMENT OF SERVICE PROVIDERS TO RENDER PROFESSIONAL SERVICES AS ENGINEERING CONSULTANTS FOR ELECTRICAL INFRASTRUCTURE PROJECTS ON A TURNKEY STRATEGY FOR THE PERIOD OF THREE (3) YEARS
DEVELOPMENT OF AN INTEGRATED ICT CYBERSECURITY STRATEGY
APPOINTMENT OF QUALIFIED PROFESSIONALS SERVICE PROVIDER TO DEVELOP CLIMATE CHANGE STRATEGY FOR LEPELLE NORTHERN WATER FIVE(5) OWNED SCHEMES/SITES FOR TWO YEARS
APPOINTMENT OF SERVICE PROVIDERS TO CONDUCT AN INDEPENDENT REVIEW AND RECOMMENDATIONS ON THE APPROPRIATE STRATEGY, MANDATES AND INSTITUTIONAL FORM FOR THE INDEPENDENT POWER PRODUCER OFFICE (IPP OFFICE) IN THE FUTURE ENERGY SECTOR AND SUPPORT THE PREPARATION AND IMPLEMENTATION OF TRANSITIONAL REQUIREMENTS
Execute and complete Stage 1 - Initial Phase and Stage 2 - Execution Phase, of the NTCSA Industrialization Strategy by the end of FY28 for a period of two (2) years.
Want to see all available tenders?
Browse All Tenders →Share this article
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.