Bid Bond
The existence of a bid bond provides the owner with assurance that the bidder has the financial means to accept the job for the price quoted in the bid.
Consortium Agreement
Consortium Agreements are project specific and appropriate for instances where a consortium of independent parties wish, for the purpose of submitting a tender, to jointly enter into an agreement to pursue the tender and execute the tender if such is awarded to the consortium. It is envisaged that the parties will not necessarily establish a consortium company for the project. The parties also identify a Lead Member to lead the consortium in all representations with the client.
Corporate Governance
An organisation’s system of rules, procedures etc. used to manage and fulfil its legal, financial and ethical obligations.
e-Procurement
The term used to describe the use of electronic methods of the purchasing process. It can include e-Sourcing, e-Procurement and e-Payment (including e-Invoicing)
EOI - Expression of Interest
An expression of interest (EOI) is an informal offer made by a strategic or financial buyer for the purchase of abusiness.
Equal Opportunities
The practice of ensuring that all employees and users of services receive fair and equal treatment.
Invitation to Bid
Oral or written invitation to prospective suppliers to submit a bid on materials or services. ITB is only a solicitation, and does not qualify as an offer because the party making it does not wish to enter into a binding agreement without further negotiations. Also called request for bids (RFB).
Key Performance Indicators – KPIs
Specific measurements of service delivery within a Service Level Agreement (SLA).
Mission Statement
A short statement that describes the purpose of an organization, why it exists and its aims.
Memorandum of Understanding - MOU
A document that expresses mutual accord on an issue between two or more parties.
Partnerships
A working relationship between two or more parties either creating added value for the customer or as a means to win contracts that individually they may not be successful with. Partners can include suppliers, distributors, joint ventures, and alliances. Note: Suppliers may not always be recognised as formal partners.
Request for Proposal – RFP
A formal request for a proposal –can range from a simple proposal to a complex tender.
Request for Quotation - RFQ
A request for quotation is a document that an organization submits to one or more potential suppliers eliciting quotations for a product or service.
Service Level Agreement – SLA
A mechanism for helping a service provider and its customers achieve a shared understanding about services and service delivery. An SLA is a tool that helps manage the expectations, clarify responsibilities, and provide an objective basis for assessing service delivery.
Small and Medium-sized Enterprises – SMEs
Official term – SMEs are firms that employ less than 250 people and have a turn over of less than €50m.
Stakeholders
Individuals, groups or organisations that are affected by and/or have an interest in a particular issue or organisation. e.g. customers, partners, employees, shareholders, owners, government and regulators.
Sustainable Development
A widely-used and accepted international definition is: ‘development which meets the needs of the present without compromising the ability of future generations to meet their own needs’. e.g. the environmental and social impact of today’s actions that may affect the ability of future generations.
Tender / Tendering
A formalized process of bidding for work or contracts.