Eskom Procurement Book 2015

GLOSSARY

Total loss:

Nothing salvageable, that is, completely lost from an insured peril and the amount recoverable is the insured value. A percentage deduction from an established price for goods (percentage often varying in accordance with volume of transaction), made by the supplier to others in the distribution chain (stockists, wholesalers, retailers, etc.). See also Discount and Rebate. Any sign, symbol, mark, word, or arrangement of words in the form of a label used by a manufacturer or supplier as identification or symbol of his particular goods, which no other person can legally use without his consent. See also Brand name and Proprietary article. In supply management is the quantity and/or value of stock issued in a given period, usually one year.

Trade discount:

Trademark:

Turnover:

Turnkey contract: A contract for plant fabrication, its installation and/or commissioning and/or the associated civil construction. Two envelope system: A tendering option for the selection of the most advantageous tenderer. The tenderers are ordered to submit their tenders/offers in two separate envelopes, both of them sealed and clearly marked. The first envelope contains the technical proposal, the second one the price proposal. Two stage tendering: Within this procurement procedure in a first stage tenderers are

asked to present technical and organisational suggestions how best to implement a specific project. Thereafter the buyer identifies the concept which is likely to be the most advantageous one. For this concept tenders are requested from the same group of tenderers in the usual formal way, including prices, in order to select the preferred tenderer.

Underwriter:

One who accepts liability by providing insurance.

Value analysis:

A systematic examination and analysis of the cost of each component or constituent part of a product (including raw materials used, finish, packaging, etc.) which can be eliminated without impairing its capacity to satisfy the intended need or use.

Vendor:

The supplier of goods (property or services). See also Supplier.

Variety control:

The selection of the optimum number of sizes, other characteristics or types of a product required to meet prevailing needs. A term generally used to indicate inspection performed without the help of measuring and testing instruments or a laboratory.

Visual inspection:

235 CHAPTER 8