Joint Venture For Tender

Joint ventures are collaborative arrangements where two or more businesses come together to share their expertise to win a specific contract for a set period for a common purpose. A joint venture for tender occurs where two parties combine resources for the specific purpose of bidding for a tender. It should be remembered that the Joint Venture is a separate entity and is not part of the individual participant’s own enterprise.

Free Initial Telephone Discussion

For a free initial discussion on how we can help you set up a joint venture, get in touch with us today. We will review your situation and discuss the process involved in a clear and approachable manner. Early expert legal assistance can help you avoid making mistakes, saving you money and also avoiding the stress of dealing with these issues on your own. Simply call us on 0345 901 0445 or complete our online enquiry form and a member of the team will get back to you..

Is this method of tendering right for your business?

Sometimes tendering for work in various industries can be quite daunting, especially for smaller companies. There is a perception that you will be competing with much larger organisations with the experience and infrastructure in place that you feel you cannot compete with. But before you dismiss the opportunity to tender for a contract, consider the prospect of teaming up with another business in the form of a joint venture and then bidding for the work. A good joint venture can bring successful outcomes without being trapped in a partnership or shareholding arrangement. Many JVs have been successful in both the private and public sector as a means of winning a tender.

An increasing number of public services are being procured through a tendering process. As the geographical spread and size of the contract becomes larger, it makes sense to combine forces in order to maximise your chances of success.  There have been many examples of organisations successfully collaborating to win tenders, however, if the process is not adequately planned it can be difficult and costly.

What are the advantages of using a joint venture for tendering?

• The combination of resources from two companies increases the chance of winning the tender.
• There will be less competition in the tender as you will be combining forces with one of your potential competitors.
• Part of the criteria for a successful bid is that your turnover must reach a certain threshold. For smaller companies, this can be a problem. However, by creating a JV, this problem can be overcome.
• A JV will spread costs, risks and the liability associated with tendering.
• Combining resources will bring together your individual skill sets hence making the bid more attractive.
• A strong Joint Venture can often provide confidence to the body awarding the business.

What are the potential problems associated with tendering as a joint venture?

• Lack of a defined agreement setting out the roles and responsibilities of both parties.
• Selecting the wrong JV partner in the first place and recognising this when it is too late.
• Mistrust between partners as there is no existing relationship between the parties in advance.
• Not sharing vital information by either party before the tender submission date.
• Not setting up the JV in advance of the tender due date as dealing with both issues simultaneously can be problematic.

The stages involved in the process:

1. Draw up the JV agreement and establish the rules and responsibilities.
2. Prepare what is referred to as a “tender toolkit” which is often part of the tendering process.
3. Complete the invitation to tender.

How we can help

We have a proven track record of helping clients set up joint ventures for the purpose of tendering. There can be an array of issues to take into consideration including employment, tax, financial, compliance and ensuring termination are drafted correctly. We will guide you through all the necessary legal due diligence in a comprehensive and timely manner and support and advise you with all the negotiations. We firmly believe that with the right solicitors by your side, the entire process will seem more manageable and far less daunting.

How to Contact our Corporate Solicitors

It is important for you to be well informed about the issues and obstacles you are facing. However, expert legal support is crucial in terms of reducing risk, saving you money and ensuring you achieve a positive outcome.

To speak to our Corporate solicitors today, simply call us on 0345 901 0445, or allow a member of the team to get back to you by filling in our online enquiry form. We are well known across the country and can assist wherever you are based. We also have offices based in Cheshire and London.

Authored by Ben Posted in Corporate, News Tagged as