Eskom Procurement Book 2015

GLOSSARY

Buyer:

The legal entity requesting and buying goods, works or services through contracts and, in most cases, in return paying for these. The right of a buyer to modify within a specified period of time any one or more of the terms of contract as agreed in advance, e.g., to increase or decrease the quantity indicated in a purchase contract by a specified percentage. Buyer’s option may be open on other terms and conditions in the contract, if so provided, e.g. port of discharge, delivery lot, size or time, etc. See also Contract modification and Supplier’s option. A buyer’s market is said to exist when supply exceeds demand, so that goods are readily available with the result that the buyer can exert some pressure on prices and drive good bargains. Aphysical or juridical person invited to take part in public procurement or seeking to be so invited. See also Bidder and Tenderer. Incoterm ‘Carriage and Insurance Paid to’ means that the supplier has the same obligations as under CPT but with the addition that the supplier has to procure cargo insurance against the buyer’s risk of loss of or damage to the goods during the carriage. The supplier contracts for insurance and pays the insurance premium. The buyer should note that under the CIP term the supplier is only required to obtain insurance on minimum terms. The CIP term requires the supplier to clear the goods for export. This term may be used for any mode of transport including multimodal transport. See also: Incoterms. Incoterm ‘Carriage paid to’ means that the supplier pays the freight for the carriage of the goods to the named destination. The risk of loss of or damage to the goods, as well as any additional costs due to events occurring after the time the goods have been delivered to the carrier, is transferred from the supplier to the buyer when the goods have been delivered into the custody of the carrier. The CPT term requires the supplier to clear the goods for export. This term may be used for any mode of transport including multimodal transport. See also Incoterms. A person or a firm who contracts to carry goods by any method of transport. An organisation or group of organisations that colludes to determine the quantities and/or prices of goods or services to be provided by each of its members.

Buyer’s option:

Buyer’s market:

Candidate:

Carriage and insurance paid:

Carriage paid to:

Carrier:

Cartel:

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