Contract Terms and Definitions
A person with the authority to enter into, manage and/or terminate contracts and make related findings. That term includes certain representatives of the contracting authority acting within the framework of their powers conferred by the delegatee. This glossary has been created to help you understand the terms used in procurement and those commonly found in contracts and terms. This is by no means a complete list, and the definitions are not universal. (CDI) A form of contract that covers long-term needs and is used when the total quantity required cannot be definitively determined, but can be given as an estimate or within the maximum and minimum limits with deliveries on demand. These contracts usually have a duration of one year or more. Deliverables: a collective term for all material things that a contracting party must deliver, often on an agreed date. Framework agreements Also known as standing agreements, standing agreements, appeal agreements and appeal contracts. This is a form of “enabling agreement” with a supplier that covers the terms (including price) of purchases made under the agreement, usually organized from a central point, where buyers “pick up” to meet their needs.
If no specific delivery quantity has been promised over a certain period of time, the agreement will only become legally binding on call. In purchasing, as in many other activities, a variety of abbreviations and especially technical terms are used, the latter often with a significant lack of consistency. In fact, various terms are used to describe the business itself – “purchasing and delivery”, “procurement”, “materials management” and “logistics”. (2) bear the costs of implementing energy-saving measures, including at least the costs (if any) incurred in carrying out energy audits, purchasing and installing equipment and training personnel in exchange for a predetermined proportion of the value of the energy savings resulting directly from the implementation of those measures during the term of the contract; It makes little sense to claim damages from a supplier for poor performance if they are unable to pay. Buyers should consider a “performance guarantee” when a third party undertakes to bear the risk that the supplier will not comply with its contractual obligations for a premium normally paid by the supplier (it may cover different percentages of the value of the order, or even more than 100%). Termination for convenience: A contract may allow one or more parties to unilaterally terminate the contract without giving any reason to the other parties. Such termination may only be permitted at certain times, such as the anniversary of the Agreement or after the end of an initial period, may require minimum notice and may require payment of an early cancellation fee by the “buyer” party or reimbursement of the unused portion of the prepaid fees by the “seller” party. Termination for convenience means the exercise of the government`s right to terminate all or part of the performance of work under a contract if it is in the interest of the government.
Especially in transactions where no clear lines need to be drawn between terms that might be inside or outside the definition, it is often best to leave the term undefined. In accordance with the general principle of formulation that contracts should use plain language (and not commercial jargon or legal German), this also applies to the definition of terms. Rod is an experienced contract management and procurement expert with a senior executive background in IT, specializing in ICT contracts an offer to perform the work described in a contract at a specific price. Government bids are usually cost-specific and are based on labor costs, materials, profits, and overhead. Offers are usually not negotiated and cannot be changed after acceptance by the owner. Bids are urgent and are usually valid for 30 to 60 days after the auction opens. Progress payments are typically used for high-value capital-intensive contracts where the supplier needs pre-financing to maintain positive cash flow during production. .