Eskom Procurement Book 2015

GLOSSARY

Barter:

Trade effected through exchanging one kind of goods for another, without involving money or any financial instrument of exchange. An agreement between a buyer and a supplier setting down some of the contract clauses that will be applicable to future procurements over a specified period of time (or till such time as either party seeks renegotiations or annulment of the agreement). Particular procurements are covered by the execution of a specific contract which incorporates, besides other relevant and agreed clauses, those already in the basic agreement. In the context of long-term contracting such basic agreements are sometimes referred to as frame contracts. Often used for recurrent provision of material or services for the same or similar purpose in order to secure a more economic procurement procedure. See also Frame contract, Blanket order and Rate contract. A tender/offer by a tenderer in response to an invitation by the buyer, usually following an invitation to tender or a tender notice, quoting his price and setting down his other terms and conditions of supply if those specified by the buyer are not complete in his view or are not acceptable to him. In case of non-acceptance or modification of the terms and conditions of the tender documents, this may be sufficient grounds for rejection of the bid. See also Offer and Tender. An obligation assured by a third party (usually a bank) whereby it agrees to be liable to pay a specified amount of money in the event that a particular tenderer, if his tender/offer is accepted, fails to sign the contract as per his tender/offer. See also: Bond and Warranty. A specified sum of money which a tenderer is asked to deposit with the buyer as a guarantee that the tenderer will, if selected, sign the contract as per his tender/offer. A tenderer who fails to sign the contract forfeits the amount of the deposit. A legal entity interested in providing a proposal within a tendering procedure. The role of the bidder ends with the award of the contract to the successful bidder who in turn becomes the supplier. In professional procurement the word tenderer is used to the same extent. See also Candidate and Tenderer. Adetailed form or statement filled in by an importer giving information on the nature and value of goods being imported for submission to the customs authorities before goods are cleared for entry into the country.

Basic agreement:

Bid:

Bid bond:

Bid deposit:

Bidder:

Bill of entry:

202 CHAPTER 8