Joint Ventures for Tenders

What a JV actually does

Where a tender permits it, two or more contractors can bid together. Turnover, past experience and bid capacity can be combined, which puts larger work within reach. Departments allow this because they would rather have two capable contractors than one stretched one.

The part contractors underweight: in most government JVs the partners are jointly and severally liable. That means the department can pursue either partner for the whole obligation. If your JV partner fails to perform, the department does not have to work out whose fault it was — it can come to you for all of it.

So the question before the arithmetic of capacity is a simpler one: would you stand behind this partner's work with your own money? If the answer is not clearly yes, the tender is not worth it.

What the agreement has to settle

• Who leads. The lead partner usually signs and interfaces with the department, and their authority has to be defined.
• Scope split. Which partner does what, in enough detail that it is not argued later.
• Money. How payments are shared, who bears which costs, how EMD and security are funded.
• Failure. What happens if one partner cannot perform. This is the clause nobody wants to write and everybody needs.
• Duration. The JV usually has to remain in place through the defect liability period, not just until handover.
• The tender's own conditions. Many specify minimum participation, JV structure and formats, and those override whatever you would otherwise agree.

Written 5 September 2026. Government requirements and portal behaviour change — message us to confirm before you rely on any date or figure here.

Common questions