In EU tenders you can bid jointly three ways: (a) consortium / temporary joint venture (TJV), (b) full JV (SPV), (c) main contractor + sub-contractor. Each has different liability, profit-sharing, and risk. Wrong choice = you'll be in court with your partner over a won contract.
When to consider a consortium?
- Turnover requirement — buyer wants €50M/3y combined; you have €20M, partner has €40M → together €60M
- Reference requirement — you lack a specific project type; partner has it
- Geographical scope — multi-country project; partner has entity in target country
- Technology scope — project spans your + partner's specialisms (E + M + IT)
1. Consortium (TJV)
Two+ firms submit a joint bid, execute under 'joint and several liability' if won. No new legal entity — you sign a 'Consortium Agreement' in the bid file. Fastest model; works even with 15-30 days to deadline.
- Pros: fast setup, separate taxation, easy profit split
- Cons: joint liability — if partner defaults, you're still on the hook
- Common in: engineering, consulting, IT tenders
2. Full JV (SPV)
Partners create a new legal entity (Special Purpose Vehicle) that bids on its own name. Set up in target country — GmbH (Germany), SAS (France). Takes 4-8 weeks: notary + bank account.
- Pros: liability limited to SPV, professional image, long-term partnership friendly
- Cons: slow setup, double taxation risk, hard to wind down
- Common in: large infrastructure, PPP, concession contracts (10+ year ops)
3. Main contractor + sub-contractor
One firm bids as main contractor; others get sub-contract agreements. Simplest but riskiest — sub-contractor is invisible to award decision, profit visible only to main contractor.
- Pros: no partnership, you work alone
- Cons: buyer approval may still be needed; some tenders require main contractor to keep 'core work' in-house (DE 25%, FR 10%)
Notes for cross-border firms
- EU + non-EU mixed consortium is preferred — boosts technical score, provides local presence
- If non-EU is lead, buyer may demand DDP delivery (customs cleared) — plan for it
- Consortium Agreement must be clear on 'lead partner' rights: who negotiates, who signs, profit share
- Dispute resolution clause — ICC Paris arbitration is a common choice
- Check double-taxation treaties before dividends flow between countries
Common mistakes
- Signing Consortium Agreement after winning — it must be in the bid file, or the bid is rejected
- Deferring profit split to 'we'll figure it out later' — the relationship cracks under project stress
- Ignoring local labour law for the SPV's employees
- Partnering without due diligence — you may end up with a partner in insolvency proceedings
Your first EU tender with a local partner in a consortium beats bidding solo and losing — even if you lose. You'll learn the market and win the next one.