Winning Strategies

Joint Ventures & Subcontracting in South African Tenders: When It Increases Your Score

Joint Ventures & Subcontracting in South African Tenders: When It Increases Your Score

Key takeaways

  • Joint ventures let SMEs qualify for larger tenders by combining experience and capacity.
  • Subcontracting commitments can boost B-BBEE and functionality points if documented properly.
  • Poorly structured partnerships are a common reason for disqualification—documentation matters.
  • Clear scope split and signed agreements prevent disputes and improve evaluation scores.

Many South African tenders are too big for a single SME—yet they are still winnable if you structure a compliant joint venture (JV) or subcontracting plan.

The problem? Most bidders don’t document the partnership properly, and the bid is disqualified. Here’s the right way to do it.

When a joint venture makes sense

  • Capacity gaps: You can deliver 60% of the scope, but not all of it.
  • Experience gaps: The tender demands past performance you don’t have.
  • Minimum grading: CIDB or other registration thresholds are too high.

When subcontracting works better

  • The tender allows partial subcontracting.
  • You need a specialist for a narrow portion of the scope.
  • You want to improve B-BBEE points with a designated supplier.

Documents you need (don’t skip these)

  • Signed JV agreement or subcontracting agreement
  • Clear scope split and responsibilities
  • Proof of capacity and registrations for each party
  • Tax compliance, B-BBEE, and CSD status for all parties

Use the tender document checklist to ensure each partner is compliant.

How JVs influence scoring

Functionality points often reward proven experience, staff CVs, and capacity. A JV that combines complementary strengths can materially increase your score. Read the evaluation criteria guide to see how points are awarded.

Avoid these common JV mistakes

  • Vague scope split (evaluators penalize uncertainty).
  • No signed agreement (automatic disqualification).
  • Fronting risk (can trigger blacklisting). See the fraud red flags guide.

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Joint Ventures & Subcontracting in SA Tenders | Win Bigger Contracts