• Glossary

    The Glossary of Terms serves as a repository of industry jargon used throughout the site. It applies to the United Nations System and to many of the multilateral banks. 


    A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z




    A
    Agreement
    An affirmation of mutual understanding or assent between two or more parties

    Award
    The action taken by the buyer, after examining and comparing the tenders/offers received, through which it:
    (i) selects the tender/offer that is determined to be substantially responsive to the tender documents and is the most advantageous and, (ii) officially notifies the tenderers of the decision as to the award of the contract. It is one of the most important stages of the procurement cycle, since it accomplishes a principal objective, that is, selection of the tenderer which is to carry out the works or services or provision of the goods that were the object of the procurement. In effect, the award completes the contract.

    B
    Bid Security
    Funds or a bid bond submitted with a bid as a guarantee to the recipient of the bid that the contractor, if awarded the contract, will execute the contract in accordance with the bidding requirements of the contract documents.

    Bidder
    A legal entity interested to provide 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 often used to the same extent.

    Bid
    An offer of a specific amount of money in exchange for products and services, as in an auction.

    Bill of Lading
    BOL or B/L, is a document issued by a carrier to a shipper, acknowledging that specified goods have been received on board. Although not a contract of carriage in itself, it serves as evidence of the same.

    C
    Cash Subsidy
    See Government Support

    Construction Cost Guarantee
    See Government Support

    Consultant
    A company or an individual providing advisory services

    Content Provider
    Multilateral lending agencies, MCC and UN offices that publish information in Development Business. See all our Content Providers

    Contract
    An agreement between two or more competent parties for the acceptance of doing or not doing something specified that has a legal and valuable consideration.

    Contract Award (CA)
    Contract Awards announce recently awarded contracts, including the type of goods, works or services involved, the amount of the contract award, and the name and country of the executing agency. Contract awards help companies and consultants monitor the competition and follow-up on subcontracting opportunities.

    Contract Period
    The length of time measured in months or years that the terms of a contract agreement are in place

    D
    Debt Guarantee
    See Government Support

    E
    Economies in Transition
    Economies which are changing from a centrally planned economy to a free market. Transition economies undergo economic liberalization (letting market forces set prices and lowering trade barriers).

    Exchange Rate Guarantee
    See Government Support

    Executing Agency
    An agency that completes assigned tasks and responsibilities to customary or specified standards within a certain time frame.

    Expressions of Interest (EOI)
    A note received from a supplier in response to a request to express interest in an upcoming procurement activity. It confirms interest to make an offer to supply goods, works or services.

    G
    General Procurement Notice (GPN)
    An advertisement announcing upcoming procurement for a project that is generally financed by a development bank or government agency. Specific contracts are not usually mentioned, rather it is designed to let bidders and consultants become aware of certain types of contracts which are forthcoming. A general procurement notices is usually followed by a specific procurement notice (SPN).

    Goods
    Physical, tangible items that satisfy some human wants or needs, or something useful or desirable and people make an effort to acquire it.

    Government Notice
    An advertisement announcing a contract that is being financed by a government agency.

    Government Support
    Hosting governments provide financial support to reduce the financial risk of a project in many ways. Some of the forms of government support are:
    1. (a) Cash Subsidy - This is when a government agrees to provide cash subsidy to a project. It can be a total lump sum or a fixed amount per new connection, and payments can be either in installments or all at once.
    2. (b) Payment Guarantee - This is when a government agrees to fulfill the obligations of a purchaser (typically a state-owned-enterprise) with respect to the private entity in the case of non-performance by the purchaser.
    3. (c) Debt Guarantee - This is when a government secures the borrowings of a private entity. That is, a government guarantees repayment to creditors in the case of a default by a private entity.
    4. (d) Revenue Guarantee - This is when a government sets a minimum variable income for the private operator; typically this income is from user fee payments by end-use customers. This form of guarantee is most common in roads with minimum traffic or revenue set by a government.
    5. (e) Exchange Rate Guarantee - This is when a government protects a private entity from fluctuations in the value of the local currency. For example, the government will agree to reimburse the private entity for losses on debt services if the value of the local currency dips by, say, 20 percent or greater.
    6. (f) Construction Cost Guarantee - This is when a government protects a private entity from potential cost overruns in the construction phase of a project.

    I
    Implementing Agency
    An organization that does the research and implementation of development projects.
    All of Development Business’ implementing agencies are well-qualified to be an intermediary between international development assistance agencies and local peoples.

    International Competitive Bidding (ICB)
    The procurement procedure where tendering is open to all local or international legal entities interested to submit a tender.

    Invitations to Bid (ITB)
    Oral or written invitation to prospective suppliers to submit a bid on materials or services. An ITB is only a solicitation, and does not qualify as an offer since the party making it does not wish to enter into a binding agreement without further negotiations.

    M
    Municipality
    An administrative entity composed of a clearly defined territory and its population and commonly denotes a city, town or village, or a small grouping of them. In most countries, a municipality is the smallest administrative subdivision to have its own democratically elected representative leadership.

    Monthly Operational Summary (MOS)
    Reports on the status of projects while they are in the bank's lending pipeline. Projects appear in the MOS from the point they are identified up to the signing of the loan or credit agreement. After loans or credits are signed, entries for projects are dropped from the MOS. Development Business publishes MOS’s from the World Bank, Inter-American Development Bank and the African Development Bank.

    P
    Payment Guarantee
    See Government Support

    Procurement
    A complete process of purchasing, planning, financing, transportation, inspection, inventory control, store keeping and disposal operations.

    Procurement Cycle
    A full procurement cycle involves the following stages:
    (a) identification of needs
    (b) tendering
    (c) contracting
    (d) contract execution and monitoring

    Procurement Notice
    An advertisement announcing upcoming or current contracts including Request for Expressions of Interest (for consulting assignments), Requests for Prequalification, and General and Specific Procurement Notices

    Project Name
    The project name will generally describe the project type or the project area.

    R
    Region
    An area considered as a unit for geographical, functional, social, or cultural reasons.

    Request for Proposal (RFP)
    A solicitation document used in a competitive sealed proposal method of procurement, to communicate the district’s requirements to prospective offerors, when the use of competitive sealed bidding is not practical, and the award will be based on both price and non-price evaluation factors in the solicitation

    Request for Quotation (RFQ)
    A solicitation document used in simplified acquisitions to communicate District requirements to prospective contractors

    Revenue Guarantee
    See Government Support

    S
    Sector
    A particular aspect of activity (i.e. telecommunication, pipelines, etc.) See our full list of sectors. (link)

    Solicitation
    'Urgently asking.' It is the action or instance of soliciting.

    Specification
    An explicit set of requirements to be satisfied by a material, product or service.

    Specific Procurement Notice (SPN)
    An advertisement announcing a current contract that is generally financed by a development bank or government agency. This should include enough details so that the potential bidders and consultants can determine if it is something they could pursue.

    Sub-contracting
    The process of entering a contractual agreement with an outside person or company to perform a certain amount of work

    T
    Tender
    A written offer to contract goods or services at a specified cost or rate

    Tenderer
    A legal entity approached by the buyer to submit a tender/offer for a specific project

    Terms and Conditions
    A phrase generally applied to the rules under which all bids must be submitted and the stipulations included in most purchase contracts; often published by the purchasing authorities for the information of all potential vendors

    V
    Vendor
    Manufacturer, producer, or seller

    W
    Warranty
    A promise or affirmation given by a contractor to the district regarding the nature, usefulness, or condition of the supplies, services, or construction furnished under a contract