Building a consortia stephanie duerden march 2014
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Building a Consortia Stephanie Duerden March 2014. What do we mean by consortia?. Definition An association or a combination, as of businesses, financial institutions or investors for the purpose of engaging in a joint venture A co-operative arrangement among groups or institutions.

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Building a consortia stephanie duerden march 2014
Building a ConsortiaStephanie DuerdenMarch 2014


What do we mean by consortia

What do we mean by consortia?

Definition

An association or a combination, as of businesses, financial institutions or investors for the purpose of engaging in a joint venture

A co-operative arrangement among groups or institutions


Why do we form consortia
Why do we form consortia?

Some examples include:

  • Better position ourselves for funding / tender opportunities that require a wider set of skills or expertise

  • To gain strength and offer greater stability by teaming up with partnersthat may be more established and/orhave better connections


Benefits of consortia
Benefits of consortia

Being part of a consortia can offer the following benefits:

  • Offering services on a scale a commissioner wants to purchase

  • Credibility

  • Shared expertise and experience

  • Financial security

  • Business development and expansion

  • A sustainable role for infrastructure organisations as the hub of the consortia


Potential pitfalls
Potential pitfalls

  • Lack of clarity of the purpose, structure and management arrangements for the consortium

  • It’s like a marriage … if your consortium wins the contract, you will be entering into contractual arrangements not just with the other consortium members but also with the public agency that is purchasing service – this means that all of the contractual terms will be enforceable in the courts


Initial things to do to form a consortia
Initial things to do to form a consortia …

  • Find suitable partners

  • Identify and agree who will co-ordinate – there is often only room for one co-ordinator!

  • Undertake some due diligence on your partners

  • Agree aims and ambitions

  • Develop your relationship with commissioners to identify what the consortia needs to offer

  • Build your consortium strategically rather than for short term / one off goals


Areas to consider when developing consortia
Areas to consider when developing consortia

  • Are the values of all partners shared, is there a clear purpose?

  • Value vs expense – is the effort and expense of instigating and supporting a consortium going to result in real additional value for all those supporting it?

  • Technical issues around general governance – which type of model might be most suitable?

  • Legal structures – what is the most appropriate structure based on what is wanting to be achieved? (e.g. LLPs, unincorporated associations, shareholding/guarantee companies)


Areas to consider when developing consortia1
Areas to consider when developing consortia

  • Insurance and liability – this needs to be clear!

  • Culture and ethos

  • Dynamics – the range, geography of partners – do they clash, compete or compliment – how will governing documents allow/disallow membership?

  • Risk and sensitivity – is the proposed partnership in a field where a high level of confidentiality is required and how is this dealt with?

  • How will the development and running of the consortium be financed initially?


Perspective partners
Perspective - partners

  • Scope – clarity of purpose / vision

  • Relationship between partners and SPV

  • Governance arrangements

  • Non compete clause

  • Economic model and benefits

  • Communication


Perspective commissioners
Perspective - commissioners

(Mis)perceptions with consortia that need to be considered and addressed:

  • It’s a start up

  • Limited ability to manage quality

  • Too many cooks

  • Who is liable / who do I deal with?



In groups – consider an opportunity where you may want to form a consortia :

  • What benefits would you want to see?

  • What minimum eligibility should there be for joining the consortium?

  • Should there be different levels of membership e.g. full and associate?

  • What should organisations reasonably expect from their membership of the consortium?

  • How activity involved should consortium members be in the governance of the consortium?

  • How will the consortium be co-ordinated?


Feedback
Feedback form a consortia :

  • Findings

  • Things you will take away and consider

  • Things you want to understand more?

  • Is it for your organisation to consider?


Contact details form a consortia :Stephanie DuerdenService Manager - Commissioning (Trusts) & Third Sector Partnership, Warrington Borough CouncilTel: 01925 444263Mob: 07827232579Email: [email protected]


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