Submit a tender as a joint venture

When two or more businesses or individuals agree to work together on a project, they are known as a joint venture.

Joint venture arrangements are usually in place for a single project. The agreement ends once the project is complete.

The parties may choose to:

  • become an incorporated joint venture and form a company
  • or remain an unincorporated joint venture.

Both incorporated and unincorporated joint ventures can tender for Northern Territory (NT) Government work.

|

Benefits of working in a joint venture may include:

  • winning work that you might not be able to get on your own
  • shared risk of the project with the other businesses
  • shared knowledge and skills that can be transferred to future projects.

If you form a joint venture, you will need to document the terms of your arrangement.

This will be an agreement between the parties to the joint venture.

Contents of the agreement

The agreement should contain the following:

  • the nature and a description of the objectives of the joint venture
  • details of how the parties will contribute to the costs and expenses of the project and divide the proceeds
  • details on how the joint venture will finance the project (if it requires finance outside the resources of the participants)
  • details of non-financial contributions of each business – for example staff, intellectual property, equipment and knowledge
  • accounting and auditing processes including invoicing and receipt of payment information
  • explanation of how the project will be managed
  • information on project specific and general business insurances
  • details of any intellectual property contributed by the parties or that may be created during the course of the joint venture
  • information on any confidentiality or publicity issues
  • advice on processes for resolving internal disputes and strategies for dealing with breaches, insolvencies and terminations
  • rights, duties and obligations of the businesses
  • proposed warranties and indemnities.

Depending on the complexities of the proposed union, the preparation of a joint venture agreement could take several months.

Submit a copy of the agreement

You may need to provide a copy of your joint venture agreement with your tender response.

The agreement will help the NT Government assess your offer.

As a formal joint venture agreement can take time to finalise, you can submit a draft copy of your agreement with your tender response.

When you finalise the agreement it should be provided to the NT Government for consideration.

If you are the successful tenderer, you will need to supply a copy of the executed joint venture agreement before you are awarded the tender.

Some tenders require businesses to be accredited by Contractor Accreditation Limited (CAL).

In these cases the joint venture will need to demonstrate that it is accredited to carry out the project.

This means that:

  1. Each party must be accredited.
  2. At least one party must be accredited in the specified category or group.
  3. The combined value of the parties' accreditation must be equal to or more than the total value of the offer.

You can find out more about the accreditation process on the CAL website.

1. Each party must be accredited

For example, you might tender on a contract that:

  • requires accreditation in the building/commercial-industrial category and
  • your tender response is to the value of $4 million.

Party one is accredited in this category to $6 million.

Party two is not accredited.

Therefore, party two must become accredited before the joint venture submits its offer.

2. At least one party must be accredited in the specified category or group

For example, you might tender on a contract that:

  • requires accreditation in the building/commercial-industrial category and
  • your tender response is to the value of $4 million.

Party one is accredited in this category to $6 million.

Party two is accredited in a different category to $3 million.

Therefore, no further accreditation is required.

3. The combined value must be equal to or more than the total value of the offer

For example, you might tender on a contract that:

  • requires accreditation in the building/commercial-industrial category and
  • your tender response is to the value of $11 million.

Party one is accredited in this category to $5 million.

Party two is accredited to $5 million.

The parties must decide which one, or if both of the parties will upgrade the value of their existing accreditation to meet requirements.

Requests for more information

During the assessment of your tender you may be requested to provide additional information to CAL.

This is to assist in the review and provide comment to the NT Government on the technical capability of the joint venture.

As a joint venture you only need to submit a single tender response.

However, each party must be listed as respondents.

The NT Government will only award the contract to the parties named in the tender response.

The following business details of all parties must be provided:

  • legal names
  • ABN/ACN
  • contractor accreditation
  • insurance
  • tenderer’s declarations.

How you will manage the work

Your bid must include an explanation about how the joint venture will operate.

This will include:

  • who is undertaking a particular section of work
  • relevant past experience
  • resource allocation and management
  • contact points for project delivery and payments.

If you have previously worked with one or more of the businesses, you should provide information to show your ability to work together.

Last updated: 08 July 2019

Share:

Was this page useful?

Describe your experience

More feedback options

To provide comments or suggestions about the NT.GOV.AU website, complete our feedback form.

For all other feedback or enquiries, you must contact the relevant government agency.