Developing a joint venture is more than just stringing company names together. A strong joint venture (JV) indicates the combined resources, knowledge and skills that make the consortium a comprehensive choice to complete the project.
Where a JV allows a brand that represents all parties involved, and not just the mega company, these tips can help.
The importance of building a unified front
Evaluation teams are trying to avoid broken promises. Believe it or not, this is often a paramount concern to cost.
Any whiff of internal conflict within the JV team persuades the selection committee to review your offer with caution. After all, no-one wants to be responsible for a project full of finger pointing, cost overruns and delays.
- Unify the JV team through a solidified, cohesive brand is vital to show the selection committee the team’s unity and combined strength.
- If disjointed, it confuses the selection committee and can sway their decision because they become concerned with a perceived lack of teamwork and unity.
Why it's often an uphill battle to createJoint ventures tend to take a decent amount of time to form, and are usually made official while the clock is already running. This delay puts the proposal team under the gun from the start because its regular proposal template and processes will not work for the JV. It needs to collect data from numerous people from different companies, many of whom have never interacted and are in different states and counties.
However, there are ways the proposal team can create a strong brand for a JV when the clock is counting down.
Steps to present a well-branded JV
A strong brand is clear, well-positioned in the marketplace and differentiates itself from the competition—instead of mirroring the competition. The biggest value and differentiator for a joint venture is combined strength and expertise. A JV must be seen as an asset, not a liability.
Identify common elements of each company’s culture, messaging and visual identity, such as colors used in their respective brands (if each company uses different colors, then pick a color not representative of a single company to show a unified front).
A separate, project-specific name that is more than an acronym of the companies’ names for the joint venture is also more appealing to the selection committee. Keep in mind, clients are looking for a single source to complete their project with as few problems and conflicts as possible. Your proposal and associated materials need to appear to be from a sole entity.
Some recent success stories
Five industry leaders – Leighton Contractors, Georgiou, GHD, AECOM and BG&E – working in partnership.
In October 2012, Gateway WA was selected as the alliance partner by Main Roads Western Australia to deliver the $1 billion Gateway WA Perth Airport and Freight Access Project on behalf of the Australian and State Governments.
The Nexus Infrastructure consortium consists of Plenary Group, Cintra Infraestructuras Internacional S.L., Acciona Concesiones S.L., Acciona Infrastructure Australia, Ferrovial Agroman Australia and Transfield Services (Australia).
In August 2015, Nexus Infrastructure was awarded the contract to design, construct, operate and maintain the 41km-long Towoomba Second Range Crossing, connecting the Warrego Highway at Helidon Spa in the east with the Gore Highway at Athol in the west, via Charlton.
The consortium comprises of Pacific Partnerships, CPB Contractors, John Holland, Mitsubishi Corporation, Aberdeen Infrastructure Investments, Deutsche Bahn International and CAF.
- In February 2016, Canberra Metro was awarded the contract to construct and operate stage one of the Capital Metro, Canberra's light rail from Gungahlin to the City.
The JV is made up of York Civil Pty Ltd, Leighton Contractors and Aurecon.
In April 2015, T2T was awarded the major works contract for the $896 million Torrens Road to River Torrens Project, involving the design and construct of a 4km non-stop section of road between Ashwin Parade, Torrensville, and Pym Street, Croydon Park.
There's no perfect 1, 2, 3 or formula to unify numerous companies and their brands, and so they must determine the JV's brand on a project-by-project basis. However, a genuine joint venture will often bring companies together who have similar cultures, methodologies and processes. making the development of a strong brand easier.
It's important to know what the government wants to see in your marketing and joint-venture application to construct a project. After attending a QLD Government State Planning workshop on tendering for government, we've created this free eBook to highlight the three methods used by evaluation officers to consider your tender. Download today and make sure you're writing your next bid for those who are going to read it.