240 / 252
228
CHAPTER 8
Price revision:
A provision in a contract for prices of products (usually a piece of
equipment to be fabricated) or services to be increased or decreased
if the costs of materials to be used (or the wages of labour) increase
or decrease during the period of delivery. Generally, the contracts
incorporate a formula for such price adjustments. Acivil construction
contract usually links wage costs of unskilled workers to any changes
in minimumwage laws or union wage settlements. See also Contract
and Fixed-price with revision.
Prime contractor:
See Contractor and Prime.
Procurement:
Purchasing, hiring or obtaining by any other contractual means
goods, works or services or any mixture thereof.
Procurement cycle:
A full procurement cycle involves the following stages:
(a) Identification of needs.
(b) Tendering.
(c) Contracting.
(d) Contract execution and monitoring.
Procurement lead
time:
See Lead time.
Procurement methods:
Internationally used term for the different procedures to be followed
in completion of a procurement cycle.
Pro-forma invoice:
An invoice prepared by a tenderer in advance of a sale to show the
form and amount of the invoice that will be rendered to the buyer if
the sale takes place. Importers often require pro-forma invoices to
support their request to governmental authorities for import permits
and foreign exchange.
Progress payments:
Periodic payments, in advance of delivery or completion of the full
contract. Such payments are usually contractually linked to different
stages in the manufacturing process of a product (equipment), or
progress of the civil construction or services rendered. See also
Payment.
Proposal:
See Offer, Quotation and Tender.
Proposal conference:
A meeting of all prospective tenderers convened by a buyer some
time before the bid closing date to explain to them the precise scope
of work and to provide any clarifications on design, specifications,
etc. The purpose is to ensure that the tenderers are clear about
the buyer’s precise needs and also have a uniform understanding
of these.
Proprietary article:
An article manufactured and sold by a patentee or by his licencee.
See also Patent.
GLOSSARY