Eskom Procurement Book 2015

GLOSSARY

Marking:

Indications on a product or on a package primarily for the purpose of identifying it; marks, marks of conformity, characteristics of the product, etc. Marking may also be applied to equipment employed in transferring a product to the user; for example, dispensers such as petrol pumps. Any deficiency (such as physical, chemical, electrical or functional) noted in material that is attributed to non-conformance with contract specifications. Substandard workmanship falls within this definition. See also Non-conformance and Technical specification. The award of separate contracts to two or more tenderers for the same product where a single tenderer does not offer to supply the entire quantity required or where the buyer wants to split a demanded quantity as part of his purchasing strategy. See also: Multiple source buying. A purchasing strategy by a buyer to diversify sources of supply, reduce his dependence on one or few suppliers, and to increase competition. See also Multiple award. The basis for a contract is that each party agrees to the same thing. Each must know what other intends; they must mutually assent to be in agreement. The bargaining process between a buyer and tenderer, each advancing his arguments in trying to get the best contract terms from his viewpoint. It is allowed for only in specific forms of procurement. See also Procurement methods. Final price after all adjustments have been made for all discounts and rebates. Breaking down a complex project into a series of activities, arranging these with precedence, putting against each of the activities the estimated completion time and depicting the sequence on a diagram to facilitate the identification of inter-relationships and critical areas of activity, a delay in any one of which is likely to delay the implementation of the project. It is a technique of contract monitoring and administration. The weight of the contents of a package/container/wagon net of packaging material and/or tare weight. See also Gross weight and Tare weight. The failure of services and/or material supplied by a supplier to conform to technical specifications and/or terms of reference incorporated in the contract. See also Material deficiency. See Goods.

Material:

Material deficiency:

Multiple award:

Multiple source buying:

Mutual assent:

Negotiation:

Net price:

Network analysis:

Net weight:

Non-conformance:

225 CHAPTER 8