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CHAPTER 8
Informal solicitation:
Aprocess of obtaining offers (oral or written) from a selected number
of tenderers or a single one without the formal procedure of issuing
invitations to tender and inviting tenders/offers within a specified
time. Often used to validate planning results. Tenderers should be
informed in advance that their offer will not result in the conclusion
of any contract.
Inspection:
A survey carried out by a buyer or his agent to determine whether
the goods or services conform to the specifications or terms of
reference laid down in the contract. This inspection may be carried
out while goods are in the process of manufacture, before shipment
or after shipment as well as throughout the implementation of a
project. It includes the process of measuring, examining, testing,
gauging or otherwise comparing activities and results with applicable
requirements as specified in the contract.
Inspection lot-
sampling:
Where the number of items is large, and 100% inspection would be
time consuming, inspection is carried out by taking a sample from
a lot and accepting or rejecting the lot depending on the number
of defects in the sample being less or greater than the acceptable
number. For services a similar activity can be carried out, focusing on
milestones identified for the particular project. See also Acceptable
Quality Level (AQL) and Quality control.
Institute cargo
clauses:
Standard insurance terms and conditions for policies covering
goods in transit overseas. The Institute clauses are drafted by the
Technical and Clauses Committee whose members are drawn from
the insurance companies and Lloyds. Details are available with
insurance companies.
Insured value:
The monetary value of the insured property as shown in the policy
plus insurance charges. To cover renewed acquisition and other
costs involved with the loss of material often 110% of the value is
insured as a standard international practice.
Intellectual property:
Property of a non-physical nature capable of being transferred from
one party to another.
Interchangeability:
The suitability of a product(s) to be used in place of another
products(s) to fulfil the relevant requirements. The functional aspect
of interchangeability is called ‘functional interchangeability’ and the
dimensional aspect, ‘dimensional interchangeability’.
International
Competitive Bidding
(ICB):
The procurement procedure where tendering is open to all local or
international legal entities interested to submit a tender.
GLOSSARY