Eskom Procurement Book 2015

GLOSSARY

Price revision:

A provision in a contract for prices of products (usually a piece of equipment to be fabricated) or services to be increased or decreased if the costs of materials to be used (or the wages of labour) increase or decrease during the period of delivery. Generally, the contracts incorporate a formula for such price adjustments. Acivil construction contract usually links wage costs of unskilled workers to any changes in minimumwage laws or union wage settlements. See also Contract and Fixed-price with revision.

Prime contractor:

See Contractor and Prime.

Procurement:

Purchasing, hiring or obtaining by any other contractual means goods, works or services or any mixture thereof.

Procurement cycle:

A full procurement cycle involves the following stages: (a) Identification of needs. (b) Tendering. (c) Contracting. (d) Contract execution and monitoring.

Procurement lead time:

See Lead time.

Procurement methods: Internationally used term for the different procedures to be followed in completion of a procurement cycle. Pro-forma invoice: An invoice prepared by a tenderer in advance of a sale to show the form and amount of the invoice that will be rendered to the buyer if the sale takes place. Importers often require pro-forma invoices to support their request to governmental authorities for import permits and foreign exchange. Progress payments: Periodic payments, in advance of delivery or completion of the full

contract. Such payments are usually contractually linked to different stages in the manufacturing process of a product (equipment), or progress of the civil construction or services rendered. See also Payment.

Proposal: See Offer, Quotation and Tender. Proposal conference: A meeting of all prospective tenderers convened by a buyer some

time before the bid closing date to explain to them the precise scope of work and to provide any clarifications on design, specifications, etc. The purpose is to ensure that the tenderers are clear about the buyer’s precise needs and also have a uniform understanding of these. An article manufactured and sold by a patentee or by his licencee. See also Patent.

Proprietary article:

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