Eskom Procurement Book 2015

GLOSSARY

Informal solicitation: Aprocess of obtaining offers (oral or written) from a selected number of tenderers or a single one without the formal procedure of issuing invitations to tender and inviting tenders/offers within a specified time. Often used to validate planning results. Tenderers should be informed in advance that their offer will not result in the conclusion of any contract. Inspection: A survey carried out by a buyer or his agent to determine whether the goods or services conform to the specifications or terms of reference laid down in the contract. This inspection may be carried out while goods are in the process of manufacture, before shipment or after shipment as well as throughout the implementation of a project. It includes the process of measuring, examining, testing, gauging or otherwise comparing activities and results with applicable requirements as specified in the contract.

Inspection lot- sampling:

Where the number of items is large, and 100% inspection would be time consuming, inspection is carried out by taking a sample from a lot and accepting or rejecting the lot depending on the number of defects in the sample being less or greater than the acceptable number. For services a similar activity can be carried out, focusing on milestones identified for the particular project. See also Acceptable Quality Level (AQL) and Quality control. Standard insurance terms and conditions for policies covering goods in transit overseas. The Institute clauses are drafted by the Technical and Clauses Committee whose members are drawn from the insurance companies and Lloyds. Details are available with insurance companies.

Institute cargo clauses:

Insured value: The monetary value of the insured property as shown in the policy plus insurance charges. To cover renewed acquisition and other costs involved with the loss of material often 110% of the value is insured as a standard international practice. Intellectual property: Property of a non-physical nature capable of being transferred from one party to another. Interchangeability: The suitability of a product(s) to be used in place of another products(s) to fulfil the relevant requirements. The functional aspect of interchangeability is called ‘functional interchangeability’ and the dimensional aspect, ‘dimensional interchangeability’.

International Competitive Bidding (ICB):

The procurement procedure where tendering is open to all local or international legal entities interested to submit a tender.

221 CHAPTER 8