What is Joint Venture and What are the Guidelines for the Joint Venture to Participant in tenedering

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Define Joint Venture and what are important guidelines for the Joint venture to participant in the tendering process

New company registration Tender Joint Venture Service, Location: Lucknow

AJAZ UL HAQ Changed status to publish October 26, 2023
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A Joint Venture (JV) is a temporary business relationship between two or more businesses. The businesses share their resources, ideas, and talent to achieve a common goal.

Guidelines for participation of joint venture firms in works tender

  1. Separate identity/name shall be given to the Joint Venture firm.
  2. Number of members in a JV firm shall not be more than three.
  3. The tender form shall be purchased and submitted only in the name of JV firm and not in the name of any constituent member.
  4. One of the members of the JV firm shall be its Lead Member who shall have a majority (at least 51% share of interest in the JV firm. The other members shall have a share of not less than 20%. In case of JV firm with foreign member (s), the lead member has to be an Indian firm with a minimum share of 51%.

\;\;\;\;\A copy of Memorandum of Understanding (MOU) executed by the JV members shall be submitted by the JV firm along with the tender. The complete details of the members of the JV firm, their share and responsibility in the JV firm etc. particularly with reference to financial, technical and other obligations shall be furnished in the MOU.

  1. On award of contract to a JV firm, a single Performance Guarantee shall be required to be submitted by the JV firm as per tender conditions. All the Guarantees like Performance Guarantee, Bank Guarantee for Mobilization Advance, Machinery Advance etc., shall be accepted only in the name of the JV firm and no splitting of guarantees amongst the members of the JV firm shall be permitted.
  2. Joint venture members shall authorize one of the members on behalf of the Joint Venture Firm to deal with the tender, sign the agreement or enter into contract in respect of the said tender, to receive payment, to witness joint measurement of work done, to sign measurement books and similar such action in respect of the said tender/contract. All notices/correspondences with respect to the contract would be sent only to this authorised member of the JV Firm
  3. Documents to be enclosed by the JV firm along with the tender.
  4. Notary certified copy of the Partnership Deed
  5. Consent of all the partners to enter into the Joint Venture Agreement on a stamp paper of appropriate value (in original)
  6. Power of Attorney (duly registered as per prevailing law) in favour of one of the partners of partnership firm to sign the JV Agreement on behalf of the partnership firm and create liability against the firm.
  7. All the members of the JV shall certify that they have not been black listed or debarred by Railways or any other Ministry/Department/PSU of the Govt. of India/State Government from participation in tenders/contract on the date of opening of bids either in their individual capacity as members of the JV or the JV firm in which they were/are members.
  8. Technical Eligibility: The lead member must have satisfactorily completed one similar single work in the last three previous financial years and the current financial year up to the date of opening of the tender for a minimum value of 35% of the advertised tender value.
  9. Financial Eligibility: The Total money received by the JV firm is the total of all the money each member of the JV firm got in the last three years and this year until now the when the tender was opened. This total should be at least 150% of the amount mentioned in the tender of the work.
AJAZ UL HAQ Changed status to publish October 27, 2023
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