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CHAPTER 8
Bill of lading:
A document which is an acknowledgement and a receipt, issued
by the master of the ship as agent of the owner, for cargo received
on board for shipment. Although not a contract of carriage in itself
it serves as evidence of the same. Salient points incorporated in a
bill of lading are: The name of the shipper. The ship’s name. Full
description of cargo (unless it is bulk cargo) including markings,
packing numbers, etc., and port of embarkation and of destination.
A bill of lading is prepared in sets, usually of three originals. One
copy is retained by the master of the ship, another by the shipper
(forwarding agent) and the third is sent to the consignee enabling
him to take delivery on arrival of goods. See also: Clean bill of lading.
Bill of quantities:
Adescription and a quantitative estimate of all materials and/or other
supplies that will be required for a proposed construction project or
production of equipment (usually custom designed). Contracts are
sometimes concluded on the basis of actual costs and an agreed
margin, when the buyer may seek a bill of quantity to estimate the
likely cost before concluding the contract and later to make final
payment when the project is completed and quantities may be
measured exactly or counted when taking over works or goods.
Blanket order:
Sometimes referred to as a master contract for reducing the need
to enter into fresh contracts for a number of orders, it provides for
the buyer to make supplies over a certain period of time and at
predetermined prices on the basis of a formula for revising prices.
See also Rate contract, Indefinite quantity buying, Frame contract
and Basic agreement.
Blueprint:
Detailed design and specifications, indicated by a drawing, of the
required product.
Bond:
A bond usually issued by a bank on behalf of a tenderer or a
supplier/contractor as security towards the buyer for the validity and
seriousness of a tender/offer, the performance and fulfillment of the
contract as well as the validity of guarantees within the terms and
conditions agreed upon. Different bonds may be asked for within
the life of a procurement cycle: Bid Bond: to guarantee that the
tenderer, if selected, will sign the contract. Performance Bond: to
guarantee that the supplier will perform as laid down in the contract.
Guarantee Bond: to assure the buyer that any defects claimed within
the guarantee period of the works and/or materials delivered will
be repaired/replaced by the supplier free of charge. See also: Bid
bond, Guarantee and Warranty.
GLOSSARY