Eskom Procurement Book 2015

GLOSSARY

Bill of lading:

A document which is an acknowledgement and a receipt, issued by the master of the ship as agent of the owner, for cargo received on board for shipment. Although not a contract of carriage in itself it serves as evidence of the same. Salient points incorporated in a bill of lading are: The name of the shipper. The ship’s name. Full description of cargo (unless it is bulk cargo) including markings, packing numbers, etc., and port of embarkation and of destination. A bill of lading is prepared in sets, usually of three originals. One copy is retained by the master of the ship, another by the shipper (forwarding agent) and the third is sent to the consignee enabling him to take delivery on arrival of goods. See also: Clean bill of lading. Adescription and a quantitative estimate of all materials and/or other supplies that will be required for a proposed construction project or production of equipment (usually custom designed). Contracts are sometimes concluded on the basis of actual costs and an agreed margin, when the buyer may seek a bill of quantity to estimate the likely cost before concluding the contract and later to make final payment when the project is completed and quantities may be measured exactly or counted when taking over works or goods. Sometimes referred to as a master contract for reducing the need to enter into fresh contracts for a number of orders, it provides for the buyer to make supplies over a certain period of time and at predetermined prices on the basis of a formula for revising prices. See also Rate contract, Indefinite quantity buying, Frame contract and Basic agreement. Detailed design and specifications, indicated by a drawing, of the required product. A bond usually issued by a bank on behalf of a tenderer or a supplier/contractor as security towards the buyer for the validity and seriousness of a tender/offer, the performance and fulfillment of the contract as well as the validity of guarantees within the terms and conditions agreed upon. Different bonds may be asked for within the life of a procurement cycle: Bid Bond: to guarantee that the tenderer, if selected, will sign the contract. Performance Bond: to guarantee that the supplier will perform as laid down in the contract. Guarantee Bond: to assure the buyer that any defects claimed within the guarantee period of the works and/or materials delivered will be repaired/replaced by the supplier free of charge. See also: Bid bond, Guarantee and Warranty.

Bill of quantities:

Blanket order:

Blueprint:

Bond:

203 CHAPTER 8