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CHAPTER 8
Barter:
Trade effected through exchanging one kind of goods for another,
without involving money or any financial instrument of exchange.
Basic
agreement:
An agreement between a buyer and a supplier setting down some
of the contract clauses that will be applicable to future procurements
over a specified period of time (or till such time as either party
seeks renegotiations or annulment of the agreement). Particular
procurements are covered by the execution of a specific contract
which incorporates, besides other relevant and agreed clauses,
those already in the basic agreement. In the context of long-term
contracting such basic agreements are sometimes referred to as
frame contracts. Often used for recurrent provision of material or
services for the same or similar purpose in order to secure a more
economic procurement procedure. See also Frame contract, Blanket
order and Rate contract.
Bid:
A tender/offer by a tenderer in response to an invitation by the buyer,
usually following an invitation to tender or a tender notice, quoting
his price and setting down his other terms and conditions of supply
if those specified by the buyer are not complete in his view or are
not acceptable to him. In case of non-acceptance or modification
of the terms and conditions of the tender documents, this may be
sufficient grounds for rejection of the bid. See also Offer and Tender.
Bid bond:
An obligation assured by a third party (usually a bank) whereby it
agrees to be liable to pay a specified amount of money in the event
that a particular tenderer, if his tender/offer is accepted, fails to sign
the contract as per his tender/offer. See also: Bond and Warranty.
Bid deposit:
A specified sum of money which a tenderer is asked to deposit with
the buyer as a guarantee that the tenderer will, if selected, sign
the contract as per his tender/offer. A tenderer who fails to sign the
contract forfeits the amount of the deposit.
Bidder:
A legal entity interested in providing a proposal within a tendering
procedure. The role of the bidder ends with the award of the
contract to the successful bidder who in turn becomes the supplier.
In professional procurement the word tenderer is used to the same
extent. See also Candidate and Tenderer.
Bill of entry:
Adetailed form or statement filled in by an importer giving information
on the nature and value of goods being imported for submission
to the customs authorities before goods are cleared for entry into
the country.
GLOSSARY