Eskom Procurement Book 2015

GLOSSARY

Commodity exchange:

Specialised markets in which titles to ownership of commodities are freely traded. Physical exchange of commodities in general does not take place, although samples of these may be examined. Many of the well organised exchanges now provide for spot and futures trading. Tenders/offers for these commodities might not show prices, but only the percentage of the surplus asked for by the tenderer on top of the market price fixed on the day the contract comes into effect. See also Futures and Spot purchase. Material that is often used by a number of users and fulfills certain standards set up. The term is generally used in the context of government procurement of such items as stationery, vehicles, typewriters, and other office equipment, machines or accessories. The suitability of products or systems to be used together under specified conditions to fulfil the relevant requirements without causing unacceptable interactions. If responsive tenders were received by the buyer in response to an invitation to tender where the tender is global (open to everyone) or is restricted (open to a selected number of tenderers) and where there is no evidence that the tenderers have had a secret understanding. See also Collusive Tenders/offers, Bid, Offer and Tender. Weighted price indices for major inputs entering into the composition of a finished item of procurement. Sometimes incorporated and made use of in a contract as a basis for price revision. See also Price revision. list price but in some other form with the same effect on the net price, e.g. 90 days credit (i.e., payment to be made after 90 days of delivery). See also Cash discount, Quantity discount and Trade discount. A letter of credit in which the negotiating bank guarantees payment to the beneficiary after all conditions mentioned therein are fulfilled. See also Letter of credit. A situation where personal or business interests of a party could affect the outcome of a business transaction through the non- declaration of that interest. For example, tenderers should never be involved in the preparation of tender invitation documents or evaluation of the same tender.

Common-use item:

Compatibility:

Compensation trade: See Buy back. Competitive tendering:

Composite price index:

Concealed damage: Damage that is not apparent at the time of delivery and which may be discovered only after a package has been opened and the contents examined. Concealed discount: A discount not in the form of a straight percentage deduction on

Confirmed letter of credit:

Conflict of interest:

208 CHAPTER 8