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Definition of Terms

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  • Active Contract Files
    Records of the entire procurement proceedings that are still open and with the contract still in progress. Maintenance, retention and disposal of procurement and contract records are governed by the public procurement legal and regulatory framework or other relevant law.
  • Advance Payment
    A payment to a supplier, contractor or services provider done prior to the commencement of the contract. It is requested by the selected bidder and needs a bank guarantee or bond. The amount is dependent on the agreement between the parties and/or any limitations set in the public procurement(...)
  • Advance Payment Guarantee
    A bond or bank guarantee the supplier, contractor or service provider is required to provider to the client as a security so that the client is able to recover the advance payment in the event of the bidder’s default.
  • Approval or Approving Authority
    The authority to approve all procurement actions, and documents produced throughout the procurement process including contract negotiations, award and those actions and documents generated during the contract administration process. Depending on the public procurement legal framework, approval(...)
  • Bid
    A response from a supplier, contractor or service provider to a solicitation request that, if recommended for award, would bind the supplier, contractor or service provider to perform in accordance with the contract. Synonymous with Offer, Proposal, Quotation, and Tender.
  • Bid Bond
    An obligation, usually assured by a bank or other third party, to release the bid security amount to the client if the selected bidder fails to sign the contract.
  • Bid Opening
    The opening and public reading of all bids received, at a designated date and time stipulated in the solicitation documents. The bid opening event is a formal process where bidders are invited to attend, the bids prices are read out and bids are examined for compliance with the submission(...)
  • Bid Security
    A monetary assurance guaranteed by a bank or other third party that (i) if the bidder withdraws his bid prior to the end of the bid validity period or, (ii) refuses to sign the contract if selected, the bidder will automatically forfeit the bid security amount to the client. The bid security(...)
  • Bid Validity
    A certification from a bidder of the period of time their bid can be considered valid. After this period, the bidder is at liberty to change their bid price if the contract is not signed by the last date of the bid validity period.
  • Bid Validity Period
    The period within which a bidder’s offer is considered legally binding. After this period, the bidder is at liberty to change their bid if the contract has not been signed.
  • Bidding Documents
    A set of documents issued by the procuring entity, inviting offers (bids, proposals or quotations) for the selection of suppliers, contractors or service providers to fulfill specific requirements. Also known as: Tender Documents and Solicitation Documents
  • Buyer
    Buyer refers to an individual making purchases on behalf of an entity. I can also refer to the entity itself that is responsible for the purchases. A procuring entity is essentially a buyer, and the procurement specialist working for the procuring entity are also considered buyers, so the(...)
  • Civil Works Procurement
    One of the principal public procurement categories, besides goods and services. Its principal characteristic is the construction and renovation of infrastructure. The contract is usually undertaken by firm because a tem of individuals is needed to complete the required tasks.
  • Client
    One of the parties to the contract. The one with the requirement that needs to be fulfilled. Also called: “employer”, “buyer” or “purchaser”.
  • Consulting Services
    A procurement category focusing on the hiring of firms or individuals to provide services that are primarily intellectual in nature. Studies, training, advice, etc.
  • Contract
    A contract is a written agreement, enforceable by law, between a procuring entity and a supplier, contractor or service provider for the provision of goods, works or services.
  • Contract Administration
    The surveillance, monitoring and reporting of the performance of suppliers, contractors and service providers for compliance with the terms and conditions of a contract from the point at which the contract is signed up until it is either terminated or completed on the date specified in the(...)
  • Contract Closeout
    The process undertaken to confirm and ensure that all deliverables and payments under a contract have been made and that all the records on file are complete. This action is also taken to make the specific procurement record inactive and ready for electronic and/or physical storage. The(...)
  • Contract Commencement
    Is the same as the effective date of the contract. The date on which the contractor, supplier or services provider is obliged to begin work on the contract.
  • Contract Completion
    The date all deliverables under a contract must be satisfied. The date agreed in the contract is the one reflected in the initial contract or the one superseded through an amendment to the original contract completion date. The successful completion of the contract marks the end of the(...)
  • Contract Effective Date
    See the Contact Commencement Date or the effective date of the contract. The date on which the contractor, supplier or services provider is obliged to begin work on the contract.
  • Contract Signing
    Marks the date of entry into force of a contract, making it legally binding between the parties to the contract.
  • Contract Suspension
    The cessation of all activities under the contract resulting from unforeseen events, breach if the contract terms and conditions or mutual agreement between the parties to the contract. This cessation may be temporary, leading to the resumption of contract execution leading to contract(...)
  • Contract Termination
    The permanent cessation of work under a contract resulting from unforeseen events, breach if the contract terms and conditions or mutual agreement between the parties to the contract.
  • Debriefing
    An oral or written report to bidders that were not awarded the contract. Depending on the procurement legal framework, this report is done after the conclusion of a procurement process, and it should inform bidders of the details of the evaluation of their bids or proposals. This report should(...)
  • Defects Liability
    Is the legal responsibility that a contractor has to repair and/or cover the cost of any defects found in a completed or renovated infrastructure works. This responsibility last only for a period of time stipulated in the contract.
  • Defects Liability Guarantee
    A sum of money belonging to the contractor, usually ten percent of the contract value, that is retained by the client, or is replaced with a bank guarantee for the same amount, which the client has the right to use if the contractor fails to repair any damages found in the completed or(...)
  • Defects Liability Period
    The time frame in which the contractor of a completed or renovated infrastructure works has the responsibility to repair or cover the cost of any defects discovered in the infrastructure. This period is stipulated in the contract and can be a year or more. The defects liability guarantee is(...)
  • Effective Date of the Contract
    The effective date of the contract is the same as the contract commencement date.
  • Force Majeure
    An unforeseen event or condition that is not caused by, or could not be prevented by any of the parties to the contract, but which resulted in delay or suspension of execution of the contract. A Force Majeure event could lead to the termination of the contract, but would not be considered(...)
  • Goods
    One of the principal procurement categories. Any physical item or a combination of an item with a service where the item is the principle product being procured. An example is the procurement of furniture or vehicles, where on the one hand there is need for assembling and installing the(...)
  • Implementing Entity
    A term primarily used in project procurement. It is the entity responsible for managing a specific project activity. The implementing entity is also the requesting entity, responsible for preparing the activity procurement plan, requesting a specific procurement action, participating in the(...)
  • Inactive Contract Files
    Records of contracts that have reached their contract completion date, have been terminated, or the period in which they are to remain active has already passed. The period of time a contract records can remain active or inactive is determined either by the procurement legal and regulatory(...)
  • Infrastructure Works
    One of the main procurement categories that exclusively deal with construction, refurbishment, demolition and rebuilding of infrastructure. This includes: buildings, bridges, roads, utilities, etc. (see also Works).
  • Kickoff Meeting
    A meeting scheduled to take place soon after the contract is signed and before contract commencement, where the parties to the contract meet to introduce the principal representatives on each side and to discuss details of contract execution, including other issues pertaining to the contract(...)
  • Manufacturer
    The producer of the goods delivered to the client by the supplier. Sometimes the manufacturer is also the supplier.
  • Mobilization
    The period of time between the signing of the contract and the contract commencement date. This period is given to the contractor to begin executing the contract scope of work.
  • Offer
    see “Bid” - A response from a supplier, contractor or service provider to a solicitation request that, if recommended for award, would bind the supplier, contractor or service provider to perform in accordance with the contract.
  • Parties
    Those involved in the signing of the contract and having rights and responsibilities towards each other. The Parties comprise, on the one hand, the client, and on the other the supplier, contractor or service provider.
  • Performance Security
    A sum of money retained from payments to a contractor, supplier or service provider, or provided to the client in advance by way of a bank guarantee that is acceptable to the client. The sum of the performance guarantee is usually 10 percent of the contract value and is returned to the(...)
  • Post-qualification
    The process of verifying all statements made in the selected bidder’s offer in order to determine compliance with legal, financial and technical requirements of the solicitation documents.
  • Pre-Bid Meeting
    Also called Pre-Bid Conference, this event takes place between the publication of the invitation for bids or request for proposals and the bid or proposal submission date. Its purpose is to clarify any doubts prospective bidders may have on the bidding/proposal documents or the procurement(...)
  • Pre-Bid Meetings
    Also called Pre-Bid Conference, this event takes place between the publication of the invitation for bids or request for proposals and the bid or proposal submission date. Its purpose is to clarify any doubts prospective bidders may have on the bidding/proposal documents or the procurement(...)
  • Pre-qualification
    An assessment, made before inviting bids or proposals, of the level of experience and capacity of firms expressing interest in undertaking a particular contract. Upon conclusion of the pre-qualification process, bids or proposals are solicited only for firms shortlisted as a result of the(...)
  • Procurement Categories
    There are three main procurement categories: Goods, Services and Works. Under goods suppliers provide commodities (supplies and/or equipment). Services are consulting and non-consulting services, and works are for rehabilitation, repair or construction of infrastructure.
  • Procurement Entity
    An appointed public body engaged and responsible for the purchasing and awarding contracts for goods, services and works. Same as Procuring Entity.
  • Procurement Lead-time
    The timeframe from the issuing and/or publication of the solicitation documents to the point at which the contract is signed by the parties. Procurement Legal and Regulatory Framework Comprises all laws, regulations and guidelines that govern the management and practice of public procurement.
  • Procurement Method
    Procedures used to procure goods, services and works. Some methods are competitive; others, non-competitive. There is a preference for using competitive procurement methods.
  • Procurement Principles
    The primary values that govern the management of public procurement. They also guide the conduct of public procurement practitioners and other actors and stakeholders involved in the public procurement process.
  • Procurement Requisition
    A formal request to begin procurement proceedings to fulfill a specific procurement requirement.
  • Procuring Entity
    see “Procurement Entity” - An appointed public body engaged and responsible for the purchasing and awarding contracts for goods, services and works.
  • Proposal
    A response from a supplier, contractor or service provider to a solicitation request that, if recommended for award, would bind the supplier, contractor or service provider to perform in accordance with the contract. Synonymous with Offer, Bid, Quotation, and Tender.
  • Proposal Validity
    The period of time within which a proposal submitted by a firm, in response to a request for proposals, must remain unchanged. After this period, if the contract has not been awarded, the firm is at liberty to change both the technical and/or financial proposals. Any attempt by the firm to(...)
  • Public Procurement
    The purchasing of goods, services and works with public funds to support government operations and/or provide public goods and services.
  • Purchaser
    The client, party responsible for the payment of the goods services or works procured.
  • Requesting Entity
    The entity for which a specific procurement action is being carried out.
  • Scope of Services
    Describes the services required and that need to be carried out in order to fulfill the contract requirements.
  • Scope of Work
    Describes the works required and that need to be carried out in order to fulfill the contract requirement. Similar to the scope of services.
  • Selected Bidder
    Bidder recommended for contract award as a result of the evaluation of bids received in response to an invitation for bids.
  • Selected Consultant
    Consultant firm or individual recommended for contract award of as a result of the evaluation of proposals or applications received in response to a request for offers.
  • Service Provider
    Firm or individual engaged the client to fulfill a service requirement (consultant or non-consultant).
  • Services
    One of the primary procurement categories that deal with all types of consultant and non-consultant services.
  • Solicitation Documents
    see “Bidding Documents” - A set of documents issued by the procuring entity, inviting offers (bids, proposals or quotations) for the selection of suppliers, contractors or service providers to fulfill specific requirements. Also known as: Tender Documents
  • Statement of Work
    see “Scope of Work” - Describes the works required and that need to be carried out in order to fulfill the contract requirement.
  • Subconsultant
    see “Subcontractor” - A firm or other entity engaged by the selected bidder to carryout a portion of the contract requirement. A sub-contractor is usually responsible only to the contractor that signed the contract with the client.
  • Subcontractor
    A firm or other entity engaged by the selected bidder to carryout a portion of the contract requirement. A sub-contractor is usually responsible only to the contractor that signed the contract with the client. Also called sub-consultant when referring to firms contracted by the selected(...)
  • Successful Bidder
    see “Selected Bidder” - Bidder recommended for contract award as a result of the evaluation of bids received in response to an invitation for bids.
  • Supplier
    The entity with which the client reaches an agreement to fulfill a requirement for goods and/or services, on a one-off basis or over a definite or indefinite period.
  • Technical Specifications
    Describes the details of the required good and/or related services in a contract in such as manner that the contractor, supplier or services provider can easily understand and determine their capability to fulfill the requirement.
  • Tender
    see “Bid” - A response from a supplier, contractor or service provider to a solicitation request that, if recommended for award, would bind the supplier, contractor or service provider to perform in accordance with the contract. Synonymous with Offer, Proposal, and Quotation
  • Tender Board
    An entity created by law to oversee the public procurement process and to ensure that all public procurement activities are carried out in accordance with the public procurement principles and legal and regulatory framework.
  • Tender Box
    A receptacle or container used for receiving tenders (bids/proposals). The use of the tender box for receiving tender submissions is dependent on the legal and regulatory framework stipulations. There a two types of tender boxes: electronic and physical.
  • Tender Documents
    see “Bidding Documents” - A set of documents issued by the procuring entity, inviting offers (bids, proposals or quotations) for the selection of suppliers, contractors or service providers to fulfill specific requirements.
  • Terms of Reference
    A document describing the details of a requirement for consultant services. It includes, as a minimum, the background and objectives of the assignment, tasks to be completed, personnel requirement and qualifications, and duration and location of the assignment.
  • Vendor
    Synonymous with “Supplier” - The entity with which the client reaches an agreement to fulfill a requirement for goods and/or services, on a one-off basis or over a definite or indefinite period.
  • Works Procurement
    see “Infrastructure Works” - One of the main procurement categories that exclusively deal with construction, refurbishment, demolition and rebuilding of infrastructure. This includes: buildings, bridges, roads, utilities, etc

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