Bids for public contracts can be made by an individual firm, or by two or more unaffiliated entities.
There are various reasons why operators decide to form a consortium. Consortium bids are common in large public contracts, when small and medium sized enterprises (SMEs) do not have the individual financial or technical capacity to undertake such projects. In order to meet the minimum turnover requirement or the necessary experience required by the contracting authority in the tender, a consortium is formed for the purposes of submitting a joint bid. Consortium bidding permits the participation of entities that would otherwise have been excluded from public procurement. Furthermore, tenderers may join forces to achieve economies o…
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