A Joint Venture (JV) in procurement refers to an arrangement where two or more companies join forces to submit a bid together. Functionally synonymous with a consortium, a JV allows participating firms to combine skills, resources, and expertise in order to meet tender requirements that might be too demanding for a single entity to handle alone. This collaboration can be formalized through a new joint legal entity or established under a cooperation agreement. In either case, contract terms usually require the JV to designate a lead partner, and collectively, the members must satisfy the tender’s selection and performance criteria.
EU procurement principles allow joint ventures provided they enhance access and capacity, especially for small and medium enterprises (SMEs). Legally, JVs must adhere to EU antitrust and competition regulations to prevent collusion or anti‑competitive behavior. Authorities commonly demand that the JV collectively meet all tender requirements, that members remain bound throughout the process, and that one partner is empowered to act on behalf of the JV. These measures help ensure transparency, accountability, and fair competition.
In practice, forming a JV enables companies to pursue large-scale or technically diverse contracts that would otherwise be out of reach. The JV structure clarifies responsibilities, ensures shared liability, and presents a unified front to the contracting authority. Careful planning—including drafting lead partner powers, liability arrangements, and performance distribution—is essential to ensure legal compliance and smooth execution if awarded the contract.
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