Eskom Procurement Book 2015

GLOSSARY

Quality certification system:

Scheme set up by exporting countries, by law or practice, for certifying specifications. An importer must determine the independence and prove the reliability of inspection and certification institutions operating under such systems, which may be government departments or private sector bodies. See also Certification body. A systematic approach to inspection of products (services) during the process of production (rendering) to ensure that the products (results) meet the expected use or performance standards as well as to identify the source of defects in materials used, workmanship, performance, design or technique of production. See alsoAcceptable quality level. A price reduction granted by a tenderer linked to the quantity of a proposed purchase. See also Cash discount and Trade discount. The system of establishing a price for supplies at that price over a specified period of time. It is also sometimes referred to as a running contract. See also Basic agreement. The evaluation and comparison of a tenderer’s performance, principally with regard to quality, timely delivery and prices. A sum of money abated by the tenderer to a buyer in consideration of the purchase of a stipulated quantity or value of goods within a stated period. See also Discount. Procurement request(s) made by a user (department) on the basis of continuing requirements. See also Non-recurring demand. To register all tenderers interested in the tender or prequalification of a specific project. The register compiled is the basis for the preparation of a short list and/or invitations to tender. See also Prequalification and Short list. A communication by the buyer to the supplier notifying him of the rejection of goods supplied or services rendered for reasons of non- conformity to quality or breach of any other contractual commitment. Another term used for tender or offer. See also Bid, Offer and Tender.

Quality control:

Quantity discount:

Quotation:

Rate contract:

Rating of vendors:

Rebate:

Recurring demand:

Registration of interest:

Rejection advice (note):

Remedies:

Corrective measures taken when directives have been breached.

Request for quotations:

A procurement procedure frequently used in cases when clear specifications and/or terms of reference permit offers to be obtained by at least three tenderers in order to select the lowest offer to supply the specified goods and/or services.

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