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
APPOINTMENT OF A SERVICE PROVIDER TO CONDUCT ORGANISATIONAL REVIEW ALIGNED TO THE TURN AROUND STRATEGY 2024 FOR PERIOD OF 24 MONTHS
APPOINTMENT OF A SERVICE PROVIDER FOR THE DEVELOPMENT OF LIMPOPO PROVINCIAL WASTE ECONOMY (CIRCULAR ECONOMY) STRATEGY.
Appointment of a service provider for the development of an Enterprise Architecture (EA) and ICT strategy for the Social Housing Regulatory Authority
APPOINTMENT OF A SERVICE PROVIDER TO WORK WITH THE DEPARTMENT OF SPORT ARTS AND CULTURE (DSAC) AND THE MZANSI CRAFT COUNCIL (MCC) TO UNDERTAKE SOME REFINEMENTS TO AN ALREADY EXISTING CRAFT STRATEGY WHICH WILL INFORM THE WORK OF THE DSAC IN THE DEVELOPMENY OF THE CRAFT SECTOR OVER THE CURRENT MEDIUM TERM DEVELOPMENT PLAN (MTDP
THE APPOINTMENT OF A PROFESSIONAL SERVICE PROVIDER TO REVISE 2012 NATIONAL FORESTRY SECTOR RESEARCH AND DEVELOPMENT STRATEGY, FOR A PERIOD OF SIX (6) 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.