Eskom Procurement Book 2015

GLOSSARY

Requirement:

The maximum overall estimated need of goods or services over a specific period of time for purposes of procurement, budgeting and planning.

Responsive bid: A tender or offer which does not vary in regard to specifications, terms and conditions of contract set out by the buyer in his invitation to tender. See also Non-responsive bid. Restricted tendering: An invitation to tender open only to certain prequalified tenderers and implementing a format method of procurement. See also Prequalification and Short list. Restrictive specifications: See Preclusive specification. Running contract: See Rate contract. Salvage:

Is used in various contexts. Generally refers to the value of a property higher than its scrap value but no longer economically worthwhile to restore to its original usable form. Salvage loss in marine insurance occurs when goods damaged in transit are sold for less than their insured value before these reach the final destination. It also refers to payments made to professional salvors who are used for saving cargo or a ship in distress, or for the services of a person who may find a piece of ship’s equipment washed up on a beach. Salvage is first charge on a saved property. Asample to be furnished by tenderers along with their tenders/offers to establish the quality of the products being offered. A form of conformity certification in which one or more manufacturers is responsible for conformity certification of its products with no surveillance from any certification body. See also Certificate of quality. Activities carried out by the supplier to achieve the contractually fixed results. Results can be physically defined (a study) or as an action (three months of training). Mixtures of supplies and services are usually put in the category to which more than 50% by value belongs. See also: Objects of procurement. The period of time during which an item, having a limited storage life, is considered to be ready for use. The sale of a commodity for future delivery which the supplier does not possess but intends to purchase prior to the required delivery date, expecting that the market price will be no higher or will decline during the intervening period.

Sample:

Self-certification:

Services:

Shelf life:

Short sale:

231 CHAPTER 8