Bidding as a consortium or joint venture: the rules in 20 countries

Why joint bids matter

Large public contracts ask for turnover, experience, certifications and capacity that many companies don’t have alone. A consortium or joint venture pools them. Reliance on another company’s capacity, or subcontracting, can do the same without a joint bid. For a company bidding abroad, a local partner often brings the registration, language and track record a foreign bidder lacks, and in some countries it’s the only way in.

The rules at a glance

Jurisdiction	Legal form to bid?	Liability	Lead member	Pool capacity?	Rely on others without a JV?	Subcontracting limit	Foreign members
EU (directives)	No; only after award if needed	Set nationally; optional for financial reliance	National or tender rules	Yes	Yes	None	Non-covered countries at buyer’s discretion
Germany	No	Usually joint and several (tender forms)	Representative (works)	Yes	Yes (Eignungsleihe)	None	No nationality bar
France	No; after award only if justified	Solidaire or conjoint	Mandatory mandataire	Yes, globally	Yes	Can’t subcontract everything	None found
Spain	No (UTE formalised after award)	Joint and several	Single representative	Yes	Yes	No legal cap	Non-EU members need classification
Italy	No (RTI mandate)	Joint and several	Lead member (mandataria)	Yes	Yes (avvalimento)	No cap; not the whole contract	Case by case for non-agreement firms
Netherlands	No	Contractual	Tender rules	Yes	Yes	None	Case by case for non-agreement firms
Poland	No	Joint and several	Joint representative	Yes	Yes	None	Non-covered members rejected by default
Sweden	No	Contractual; optional for financial reliance	None in law	Yes (turnover cap 2× value)	Yes	None	Open today; 2027 proposal would change it
UK	Not in statute	Contractual	Not in statute	Yes	Yes (associated persons)	None	Non-treaty suppliers can be disregarded
US (federal)	No; SBA JVs need a written agreement and SAM registration	Prime fully responsible	SBA JVs: small managing venturer	Yes	Yes (ostensible-subcontractor limits)	50/50/85/75% on set-asides	SBA JVs: max 49% foreign
Canada (federal)	No incorporation	Joint and several	Representative or all sign	Per solicitation	Per solicitation	None	Buy Canadian policies apply
Australia (Commonwealth)	Not in the rules	Per tender terms	Per tender terms	Per tender	Per tender	None	Australian-only below thresholds
India (central works)	Agreement or letter of intent	Joint and several	Lead ≥50% of criteria, others ≥25%	Yes	Limited	Contract-set (often ~25%)	Land-border-country members trigger registration
Brazil	No; constituted before signing	Joint and several	Named leader (needn’t be Brazilian)	Yes, +10–30% financial	Allowed	None	Equal treatment by law
Japan (public works)	Agreement (協定書)	Joint and several	Largest share; 2–3 firms	Per member, not pooled	No	No wholesale subcontracting	Each member needs a Japanese licence
South Korea	Agreement filed with bid	Joint, split or main-contractor model	≥50% for large works	Yes	Not verified	No subcontracting of the main part	Local member often required below GPA threshold
Singapore	Tender-specific	Tender-specific	Tender-specific	Consultancy pooling (BCA)	Tender-specific	Tender-specific	Construction needs local registration
UAE (federal)	Allowed as “supplier alliances”	Joint	Not specified	Not specified	Not specified	Not specified	Every member must be registered
World Bank-financed	No	Joint and several	Representative	Yes (combined/each/one-partner tests)	No (specialised subcontractors only)	Set per tender	Open to all countries

The European Union baseline

Under Directive 2014/24, which every member state has written into law:

No legal form to bid. Groups of companies may bid as they are. A buyer may require a specific legal form only after award, and only if it’s needed to perform the contract.
Pooling. Groups can combine their capacities. A buyer can say how a group must meet the criteria, if that’s objectively justified and proportionate.
Reliance on others is allowed, whatever the legal link. You must prove you’ll have the resources. For experience or qualifications, the other company must do that work. For financial standing, the buyer can require joint liability. Critical tasks can be reserved to the bidder.
Subcontracting. The buyer can ask what share you’ll subcontract and to whom. There’s no cap.
Turnover: at most twice the contract value.

Coming: the proposed EU Public Procurement Act (September 2026) would:

stop buyers requiring a legal form even after award;
ban subcontracting a whole contract;
cap turnover requirements at 50% of annual contract value;
let buyers admit only groups made up wholly or mostly of EU or covered firms in strategic sectors.

It’s a proposal, likely years from applying.

Country notes

Germany. Consortia are treated like single bidders (§43 VgV). In practice, tender forms ask for joint and several liability and a named representative. Reliance on another company’s capacity (Eignungsleihe, §47 VgV) works as in the EU directive. Since July 2026, a buyer that bundles lots can require the main contractor to subcontract to SMEs.

France. You choose a groupement solidaire (all liable for the whole contract) or conjoint (each for its own share). Either way you name a mandataire (lead member), who can lead only one group per contract. Capacities are assessed together. You can’t subcontract the entire contract, and each subcontractor must be accepted by the buyer (form DC4). Since 2025, a group’s composition is frozen between application and signature, except for restructuring or a member that can’t continue through no fault of its own.

Spain. A UTE (temporary joint venture) doesn’t need a notarial deed until award, but members are jointly and severally liable with one representative. For works of €500,000 or more, non-EU members need Spanish classification themselves.

Italy. An RTI (temporary grouping) bids under a mandate to the lead member, and members are jointly liable. Avvalimento (relying on another company’s capacity, including its SOA certificate) needs a written contract, and both firms are jointly liable.

Netherlands and Poland. Both allow consortia without a legal form, and reliance on others’ capacity. In Poland, bids from consortia that include a company from a country without an EU procurement agreement are rejected by default unless the tender allows them.

Sweden. Groups need no legal form, and there’s no statutory joint liability, except that a buyer can require it when you rely on another company’s financial capacity. A separate ESPD is needed for each company you rely on.

United Kingdom. Under the Procurement Act 2023, you can meet the conditions of participation through consortium members, intended subcontractors or guarantors, the “associated persons”. They’re checked for exclusion grounds, and you must be allowed to replace one that’s excluded before you are. Buyers must ask for all intended subcontractors. They may disregard bids from suppliers, or their subcontractors, from countries without a UK procurement agreement.

United States.

Teaming: federal rules recognise contractor team arrangements, either a joint venture acting as prime or a prime with designated subcontractors.
Small-business joint ventures need a written agreement and SAM registration. They can bid for two years from their first award.
Mentor-protégé joint ventures: the protégé must do at least 40% of the work. Such a joint venture can bid as small on any set-aside the protégé qualifies for.
Foreign participation in a small-business joint venture is capped at 49%.
Subcontracting limits apply on set-asides.

Canada. Joint venture members are jointly and severally liable and must either all sign or appoint a representative (SACC 2003). Each solicitation states whether experience is one member’s or pooled. Buy Canadian policies apply to foreign participation.

Australia. The Commonwealth Procurement Rules don’t regulate consortia; each tender’s terms do. Below the thresholds, only Australian and New Zealand businesses are invited since November 2025.

India (central government works).

Lead and partner shares: the lead partner must meet at least 50% of the individual criteria for turnover, experience and cash flow, and each other partner at least 25%. The joint venture as a whole must meet 100%.
Liability: partners are jointly and severally liable, and the performance guarantee is split by participation.
Bad records: one partner with a bad record disqualifies the whole venture.
Land-border rule: if any member is from a country sharing a land border with India, the joint venture needs registration with the competent authority.
Foreign partners: for some notified items under Make in India, foreign companies must partner with an Indian company.

Brazil. Consortia are allowed. Members are jointly and severally liable and name a leader, which no longer has to be Brazilian. Buyers can require 10–30% more financial capacity than from a single bidder (not for consortia made up entirely of small businesses). The consortium must be constituted and registered before signing.

Japan (public works).

Size and shares: a single-project joint venture (tokutei JV) has 2 or 3 members, led by the firm with the largest share. Each must hold at least 30% (two members) or 20% (three).
Qualification: each member qualifies on its own. Every member needs a Japanese construction licence and the management review.
Overseas firms are expressly allowed, if licensed.
Subcontracting: wholesale subcontracting is banned.

South Korea.

Encouraged: joint contracting is to be used “as far as possible” in competitive contracts.
Three models: joint execution (jointly and severally liable, up to 5 members with at least 10% each), split execution, and a main-contractor model.
Local partner: below the GPA threshold, many works require a local member based in the project’s province, holding at least 30%. Projects with a foreign construction company can be exempt.

Singapore. Rules are set tender by tender. GeBIZ notices state whether consortia are accepted. In construction-related consultancy, firms on the same BCA panel can pool resources to bid above their individual limits.

UAE (federal). Federal rules allow “supplier alliances”, with members jointly liable. Every member must be registered on the federal procurement platform.

World Bank-financed contracts.

Joint ventures with domestic or foreign firms are allowed, all partners are jointly and severally liable, and borrowers can’t make joint ventures mandatory.
One bid per firm: a firm may submit only one bid, alone or as a partner, though it can be a subcontractor in several.
Qualification: affiliates’ and subcontractors’ qualifications don’t count, except specialised subcontractors where permitted. Standard documents test qualification for the partners combined, for each partner, and for one partner.

Practical tips for joint bids

Check the tender’s own rules first. Many limits (maximum members, minimum shares, how experience is counted) are set per tender.
Agree liability in writing, even where the law is silent. Joint and several liability means your partner’s failure is yours.
Mind the origin of every member in countries that restrict third-country bidders, such as Poland, the UK and the US for set-asides.
Don’t change the line-up mid-procedure. In France, Korea and Spain, changing members between bid and award can disqualify you.
Use a local partner for registration, language and track record when bidding abroad. In Japan, Korea and Spain, licensing rules make it close to essential for works.

What changed in 2025–2026

January 2025: France allowed limited changes to consortium composition, and tightened when a legal form can be required.
February 2025: the UK Procurement Act’s “associated persons” rules took effect.
September 2025: Poland began rejecting non-covered members by default; the World Bank’s 7th edition was published.
November–December 2025: Australia’s Australian-only rule below thresholds; Canada’s Buy Canadian policy.
January 2026: Korea issued new joint-contracting rules.
1 July 2026: Germany’s procurement acceleration law allowed SME subcontracting duties on bundled lots.
September 2026: the EU proposed a Public Procurement Act that would further loosen form rules, ban 100% subcontracting and allow a European preference.

Questions

Does a consortium need to form a company to bid for a public tender?

Usually not. Across the EU, groups can’t be required to adopt a legal form to bid; a buyer can require one after award only if it’s needed to perform the contract. The same applies in the UK, Canada, the World Bank and most other systems we checked. Some countries require a signed agreement or letter of intent with the bid, such as India, Japan, Korea and Brazil.

Can consortium members combine their turnover and experience?

In most systems, yes: the EU directives, Germany, France, Sweden, the UK, Brazil and Korea assess the group’s capacities together. Some set minimums per member: in Indian central works tenders the lead partner must meet at least 50% of the individual criteria and each other partner at least 25%; in Japan, each JV member must hold its own licence and qualifications; Brazil can require 10–30% more financial capacity from a consortium than from a single bidder.

Are consortium members jointly and severally liable?

Often, but not always by law. World Bank, Canadian federal, Indian and Japanese JV rules make members jointly and severally liable; France offers a choice between a groupement solidaire (joint and several) and conjoint (each for its own share); Korea has joint, split and main-contractor models; the EU directives leave it to member states and tender documents, though buyers can require joint liability where a bidder relies on another company’s financial capacity.

Can I rely on another company’s capacity without forming a consortium?

In the EU, yes, whatever the legal link between you, as long as you prove you’ll have the resources; for experience, the other company must actually do that part of the work. The UK, Germany, France, Sweden, Italy and Poland all allow this. World Bank-financed tenders generally don’t, except for specialised subcontractors where permitted.

Can a foreign company join a consortium for a public tender?

Usually, but it can matter which country it’s from. Poland rejects bids from consortia including firms from countries without an EU procurement agreement unless the tender allows them; the UK may disregard bids subcontracting to non-treaty suppliers; US small-business joint ventures can have at most 49% foreign participation; in India, any member from a country sharing a land border triggers a registration requirement; Japan and Korea require Japanese or Korean construction licences per member.

Is there a limit on subcontracting?

The EU directives set no percentage cap, though France bars subcontracting the whole contract and the proposed EU Public Procurement Act would do the same EU-wide. US small-business set-asides cap work paid to non-similarly-situated firms at 50% for services and supplies, 85% for general construction and 75% for special trades. Japan and Korea ban subcontracting all or the main part of construction works.

Sources

This guide explains the rules in plain English; it isn’t legal advice. Procurement rules change, and each tender document sets its own conditions — it always prevails.

Bidding as a consortium or joint venture.