CONTENTS The 2012 International Procurement Yearbook 4TH ANNUAL EDITION I N T E R N AT I O N A L I N C . VI VII PREFACE ABOUT THE FIRM SAMPLE GENERAL - GLOBAL CONSTRUCTION PROCUREMENT TOPICS PURCHASE ORDERS & CONTRACTS PURCHASING / PROCUREMENT AND CONTRACTING METHODS VARIOUS EORMS OF CONSTRUCTION CONTRACTS INVITATION TO BID / INSTRUCTIONS TO BIDDERS / BID PACKAGE DOCUMENTATION CONTRACT ADMINISTRATION ORGANIZATIONAL ISSUES / PRROCUREMENT ROLES AND RESPONSIBILITIES QUALITY CONTROL (QC/QA), SAFETY, INSPECTION, EXPEDITING AND TRANSPORTATION ACTIVITIES INTERNATIONAL PROCURMENT ISSUES SAMPLES OF INTERNATIONAL AND USA CONSTRUCTION / CONSULTING CONTRACTS COUNTRY PROCUREMENT: DATA ON 125 COUNTRIES GLOSSARY OF INTERNATIONAL PROCUREMENT TERMS PROCUREMENT FORMS 01 Section 1 GLOBAL CONSTRUCTION PROCUREMENT TOPICS Trends and issues we will see in 2012 and beyond Procurement / Project Delivery Methods and Issues !" # $ % & ! ' ( )' *+ - ..3 $345 %6'" .478- %'9 9 :3 ' 3 3 SAMPLE 21 Compass International Consultants Inc. Morrisville, Pennsylvania, USA Section 2 PURCHASING / PROCUREMENT AND CONTRACTING "'9 94 The Buy Out / Procurement Procedure Purchase Orders Contracts 5 *"+ %: ' "' ' 3 ; - (<; '' ()7)=4' ) 6;# ) ! ) 93( > 7& ! 93( Service Contracts Purchase Order / Construction Contract Administration %= 5'' 3= '' (;#3 '3= =5'* ?5'+ "< 6 < 9 3 6 9'' #' ' SAMPLE Copyright © 2012 Compass International, Inc. CONTENTS | III. II. | CONTENTS 45 Section 3 PURCHASING ACTIVITIES ! > %%'!@ '!E': %"9 ?'? ?'?>F3 ?'?9 ; 5 *"+% ?'?% 61 Section 4 QUALITY CONTROL (QC/QA), SAFETY, INSPECTION, EXPEDITING & TRANSPORTATION ACTIVITIES : 4 <7 <; 9 93' ).9.& 6 79.& 9' % & 3' # Transportation Issues 73 Section 5 103 Section 6 INTERNATIONAL PROCURMENT ISSUES :3@ # &&# Overseas Business Practices Import Permits / Government Procedures Metric Considerations -.K 9 #. "% 6' Copyright © 2012 Compass International, Inc. Section 7 COUNTRY DATA & 2012 GENERAL NOTES 7 Albania 7 7 7 Armenia Australia Austria 7@3 Bahrain ; Belarus ;' ;@ Benin Bhutan Bolivia Bosnia Botswana ;@ ; ;#" Burundi Cambodia Cameroon Canada 73 Chad Chile China Colombia .'3 Costa Rica Cote D’ Ivory Croatia Cuba Cyprus @3 .'# Dominican Republic 9 " " Gabon :'3*%+ SAMPLE SAMPLE CONSTRUCTION CONTRACTS & CONTRACT ADMINISTRATION "' "='; G . (; '3 3 ( 9 H 5 35 5 <*"<+ Instructions to bidders ;7 '' International Construction Contracts Sample contracts 9'. ;7'=" ('' 91 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 SAMPLE Copyright © 2012 Compass International, Inc. CONTENTS | V. IV. | CONTENTS 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 177 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 : Germany Ghana Greece Guatemala :(; Guinea Haiti Honduras N India Indonesia Iran 65 Israel Italy F' F F N@# N N& Laos Lebanon Libya = Malawi Malaysia Mali = = Morocco =@'35 Namibia Nepal G *%+ New Zealand G G G Norway # Panama Peru Philippines Poland Romania Russia Rwanda Saudi Arabia Copyright © 2012 Compass International, Inc. 207 208 209 210 211 212 213 214 215 216 217 218 219 220 221 222 223 224 225 226 227 228 229 9 97 9N Spain Sudan Sweden 9&@ Syria %# Taiwan Thailand % Tunisia %# H# HN' H9 7' H@3# $@ Vietnam Yemen Zambia 6 SAMPLE SAMPLE 231 Section 8 GLOSSARY OF INERNATIONAL PROCUREMENT TERMS AND PROCUREMENT RELATED FORMS SAMPLE Copyright © 2012 Compass International, Inc. SECTION 1 | 03. 02. | SECTION 1 12% - 13% of the worlds GDP, making the engineer- Individuals in Asia, North and South America still ing and construction sector one the largest employhave a strong appetite for BMW’s, Audi’s and Merers, employing as many as 200 million construction cedes Benz vehicles, plus German capital machinery professionals and construction workers. appears to be in demand again. The Euro could be In 2018 or 2019 China will motor past the USA in danger in 2012 due to the huge debts of Spain and to become the worlds # 1 construction market. West- Italy. ern European countries such as Germany, France, The following chart on the next page is a list of Spain and the UK are anticipated to drop in ranking the 15 largest construction markets and their particuas countries such as India, Brazil and Russia move lar ranking in 2012, and how the rankings will look up the rankings table. in 2016. The USA is by far the largest construction China continues to make large advances in basic market representing approximately 17% - 18% of infrastructure expansions (major highways, secondthe world construction output, however China and ary roads, airports, power stations, electrical grid India are catching up rapidly, China is forecast to etc); with China’s huge transient have 15% - 16% of the global low cost labor pool estimated to be construction market in 2016, over 100 million - this will give rise up from its current 12.5% share to China’s installation costs being today. extremely low in comparison to Other countries expected to North America or Western Euro pean practices. Consider the 2008 Olympic Games held in China, it clude, Nigeria, Indonesia, Turwas extremely well managed and key, Poland, Saudi Arabia, South the facilities were as good as any you could see in Africa, Vietnam, Thailand, Angola and Cambodia. Berlin, Lisbon or Chicago. This expansion has had The US housing market is expected to build 1,000,000 new homes in 2012, up 20%- 25% over sustained economic growth in the last three years. 2011 levels, however the US housing and commerChina’s construction expenditures are forecast to cial construction market will still be in the doldrums pass through the $2 trillion mark in 2016. in 2012. In the next ten years India has plans to invest US construction wages are forecast to grow by between $200 - $400 billion on essential infrastruc2% to 3% in 2011. ture development (ports, bridges, highways, airThe current global construction market is in the ports, power stations / hydro power facilities and its $8 trillion range, fast-forward to 2016 and this is electrical grid, etc); anyone familiar with the Indian forecast to be approaching $9 trillion, an increase of highway system will know that the current dilapidat- !"&'!*&+ ed highway system is a huge impediment to India’s :< future growth ambitions. = < ">"? With its’ vast oil and gas reserves, Nigeria will back they were not even in the top twenty. be a country with lots of industrial related construcAs we transition into 2012 the worldwide ention opportunities in the next ten years, numerous gineering and construction sector is slowly getting < will be engineered, procured and constructed. < < <<">>@ The Euro appears to be gaining strength again, and 2008. Experts forecast reasonably strong worldbuoyed by strong economic growth in Germany. wide engineering and construction growth for the 15 Largest Construction Markets 2012 RANKINGS & PROJECTED RANKINGS IN 2016 COUNTRY 2012 RANKING COUNTRY 2016 RANKING USA China F Germany HN " 6 ;@ Spain Canada India 7 = 9N 1 2 X 4 \ ] ^ _ 9 10 11 fg fX fk f\ USA China F India :' HN " ;@ Russia Italy Spain 9N 7 = 1 2 X 4 \ ] ^ _ 9 10 11 fg fX fk f\ SAMPLE ">>!"H">!J+Q ing and construction growth will be driven in the main part by Brazil, Russia, India and China the newly up-and-coming (BRIC) countries. Engineering and construction related organizations around the world are endeavoring to take advantage of internet commerce; this encompasses the request for proposal(s), procurement of goods and services, estimating, bidding, engineering documentation and deliverables distribution, project status reporting and data collection. Contractual arrangements seem to be slowly X< arrangements to more of a risk sharing contractual arrangement, one in which the contractor can share perhaps 20% - 30% of any savings realized on Guaranteed Maximum Price type contract. Commercial construction costs in Saudi Arabia, Qatar, Kuwait, UAE and Dubai have tumbled by more than 25%- 35% percent from their peak 2006 / 2007, commercial type construction work is expect Z ">!"+Q X =[ tion work has bounced back to their peak 2006 / 2007 levels and is expected to increase in 2012 by SAMPLE SAMPLE Copyright © 2012 Compass International, Inc. 3.5% - 4.5% over 2011 levels. \ ] Z^ Events on Engineering and Construction Costs in the last couple of Decades: Numerous events / happenings that occurred ` ' Z < of some construction materials and equipment (the material that spring to mind are lumber, plywood, steel products, copper products, glass products and asphalt materials to name but a few). Some of these major events include: Natural disasters in the U.S., such as the Gulf oil spill and the $7 billion (and counting) in damages it caused, Hurricane Ike, Katrina, Rita, Wilma and | }=Z< the Midwest and in the Western states. The global economic downturn of the recent two or three years has impacted material costs, some construction related materials have fallen by as much as 10% - 25% in the last year, it would appear that as of 1/2012 that the worst of the recent global economic downturn / recession is over, and USA GDP growth in the fourth quarter of 2011 was forecast to be 2.5%. Copyright © 2012 Compass International, Inc. SECTION 5 | 79. 78. | SECTION 5 Name and address of Construction Manager An in-depth description of the scope of work to be performed Bid form listing the bid price Bid form requesting unit prices and labor rates / mark-ups for additional work The closing date, time, and location when bid is to be submitted A standard pre-printed form requesting the bidder to signify, within 48 hours of receipt of invitation to bid, of whether a valid / compliant bid will be offered A statement as to the validity of the bid (30, 60 or 90 days) A list of key project related milestone dates (e.g., start of construction, substantial completion date, completion of construction and handover date) X Security procedures related to bids (i.e. plain sealed envelope with printed reference #) List of contract drawings, together with revision number < revision number A sample of the contract that will be used to execute the work, complete with any site procedures / safety requirements, drug testing and general terms and conditions; relevant assigned owner furnished project purchase order or current subcontract documents and orders A listing of insurance requirements Owner site coordination procedures Data submittal / shop drawing requirements QA/QC obligations Shipping requirements Start-up requirements Warranty requirements Out of the ordinary conditions and site factors such as hot work permits, safety hats and shoes ~ } ++ need for a full time safety manager A contact name for commercial questions A contact name for technical questions Copyright © 2012 Compass International, Inc. On closed bids and negotiated bids, the Instructions to Bidders should include a statement denoting that the owner has the right to accept or reject any, or all bids received. This statement should also imply that the owner has the right to award the work to the contractor (bidder) who will satisfactorily meet the goals and requirements of the project. contract formats (some of these can be downloaded large number of industrial and process-type confor immediate application and use). These construc- struction projects (petro-chemical, steel mills, manution contract formats are widely known and used facturing facilities, power plants, food and beverage in the construction industry; it seems that they are facilities) are performed under the terms and condi * ? Z tions of a contract established by the client (usually +| a Fortune 500-type corporation), or in some situanumber of commercial construction contracts in the tions, by an overseas government agency. Usually U.S. are executed under the terms and conditions of these types of contract tend to favor the client, which the American Institute of Architects’ standardized is not surprising since they developed the contract form of contract. The AIA form of contract is well language. Reviewing overseas contracts is very known in the U.S. construction community. It is an important to the organization considering performestablished way of executing a construction project, ing work in a foreign country. Local lawyers knowland has, over the years, stood the test of time. edgeable in local and international contracts should In the United Kingdom, commercial construcbe retained. There are literally hundreds of Forms of Contract (Terms and Conditions) used around the under the terms and conditions of world on construction projects. the Joint Contracts Tribunal (JCT) The owner may have their own ! " form of agreement; civil engiconstruction contract, or they #" $ neering projects (e.g., highways, may choose some of the follow% % & jetties, bridges, etc.) use a form of ing: FIDIC, AIA, ICE, the JCT ' contract, established by the U.K.’s Form of Contract. These Forms of SAMPLE BID EVALUATION / REVIEW, ANALYSIS AND RECOMMENDATION: Without delay after the bid opening procedure, the purchasing department should determine which bids are the most commercially and technically appealing proposals, this might be the lowest two or three < < received). An evaluation form should be completed; this form should identify and rank the two or three lowest / compliant bidders. Exception and missing scope items should be documented Exclusions to the proposal should be listed. Comments / Negotiations should commence Q<< <Z =}+Q the lowest and compliant bid will be awarded the project. SAMPLE INTERNATIONAL CONSTRUCTION CONTRACTS There are various construction / engineering industry professional societies and trade groups in the USA and Canada. Some of the more noteworthy or widely used or standardized construction related construction contracts are those produced by these construction / engineering industry professional societies. Some of these commonly used formats are the ones created by the American Institute of Architects (AIA), the Engineers Joint Contract Documents Committee (EJCDC), the Associated General Contractors of America (AGC) and the Design-Build Institute of America (DBIA). These organizations, over the years, have produced and developed an assortment of pre-printed construction Civil Engineering National Society and the Institute of Civil Engineers (ICE). These contract formats are known and understood by the U.K. construction community. Many standard contract forms are used throughout the world. Usually these contract forms are based on the recommendations, practices, and methods favored by each country’s design/engineering community. These forms, in many ways, are similar to the standard forms of contract established by the U.S. and the U.K. When working in certain developing countries, these forms of contract many times do not exist. The organization performing work in these countries may need to establish a form of contract that is acceptable to both contracting parties. On some occasions, the FIDIC form of contract is utilized. The estimator will need to review the form of contract being utilized, since they often have cost < terms, and requirements of providing as-built drawings, translation costs, payment terms, bonus/penalty clauses, retainage values, and warranty periods. A SAMPLE Contract spell out the various duties, rights and obligations of the parties to the contract. A more detailed discussion on this topic will be found in subsequent sections of this publication. Most developed countries around the world have similar type associations and trade groups that, by and large, produce somewhat similar construction contracts that apply to their particular country. The following is a partial list of contracts that are used around the world. There are lots of different forms of contract that have different terms and conditions, these terms and condition have procurement and, of course, cost consequences associated with them. Federal Acquisition Regulations (FAR) US Government Contracts The 2007 RIBA (UK) suite of agreements Royal Institute of Charted Surveyors (RICS) UK National Joint Consultative Committee for Building (NJCC) UK The new engineering contract (NEC-2 & 3) UK Copyright © 2012 Compass International, Inc. SECTION 6 | 97. 96. | SECTION 6 in an overseas country, the questions are, of course, their price was $50 million; this included towing the focused on procurement / contractual issues, this is dry dock half way around the world. – So this is why not an all encompassing list, and the reader should we go to international vendors, they offer decent add questions to this list if necessary. Responses quality, and many times aggressive pricing, this can typically be obtained from the targeted or host competitive pricing, in turn, is affording the Project country’s U.S., German, Spanish, etc, embassy. Manager / Purchasing Agent / Site Managers comProject procurement efforts will be enhanced by this pany to be competitive – one hand washes the other. early front effort planning / research effort. Every business / Construction related organization See next page for list of questions. moving into the international construction – procureIf time permits, a more detailed list of procurement arena should create basic guiding principles ment related questions should be developed, during and procurement procedures to direct the Project a country survey / intelligence gathering trip. This Manager / Purchasing Agent / Site Managers in his information will greatly assist the procurement plan- or her future global procurement efforts. Items to be covered / considered include activities such as frontning effort. The data can, many times, be helpful to end planning, contract language, other parties that may be working purchase order language, required on the same project, i.e. consultants (# documentation, procurement, or JV partners. ") ) contract administration, payment terms, subcontracting, quality MAIN ISSUES TO CONSIDER *&%"assurance/control, expediting, (1). Overseas Business Prac+ inspection, and transportation. tices (are different from U.S. These individuals must be cogpractices): Business practices, cul- , &, " nizant and scrutinize the local ture, ethics, work habits, religious customs and the unique ways of beliefs, eating and drinking habits, < X X dress codes, construction methods and operating region. procedures can and do differ, sometimes dramati(3). International Contracts: A high percentcally, from one country to the next. Engineering, age of construction contracts in the U.S. are carried Procurement and Construction professionals working in a foreign country should endeavor to research out under the terms and conditions of the American and understand these practices since they can have a Institute of Architects’ standardized form of contract. The AIA form of contract is well known in the U.S. ` + (2). International Purchasing: Has anyone ever construction community. It is a well-known way of executing a construction project and has, over the told you the world is getting smaller and smaller? years, stood the test of time. In the United KingThe borders and economies are blurred today, the dom, commercial construction of schools, hotels, internet, faxes, cheaper telephone costs, CNN; all these factors have contributed to this situation. The terms and conditions of the Joint Contracts Tribunal Project Manager / Purchasing Agent / Site Managers are moving to international vendors, why? - As a (JCT) form of agreement; civil engineering projects (e.g., highways, jetties, bridges, etc.) use a form of side note – the writer was involved with purchasing contract, established by the U.K.’s Civil EngineerZ =' '=@?>' Q +~< ing National Society and the Institute of Civil Engi <<= !>> neers (ICE). These contract formats are known and understood by the U.K. construction community. million, we got two bids from Chinese shipyards – Procurement / Contractual Checklist OVERSEAS COUNTRY # QUESTION f 2 X k \ ] ^ _ { f| ff fg fX fk f\ f] f^ f_ f{ g| gf & K)& q Payments terms, in local currency or are there issues that 3 q q 4 ) 3&q 7& ' 5' q '4 )&& 3q 7 ) 3 q. 4& ) &( q .& --))x9z)-> 'F$& 'q 5' &#' ) ) '3 &q K) ) q K)6' ) $7%:%9 q 4 3'q '#q &# '#q 7 '5' 3#' > 6 @' # q & $@> !3 $ ) 74' } 3 3> #&& '&#'> 7' 4 )>> ' ' 3 > ' ' ' ) ' ) 4' )@ '3> .'4& )& '> YES NO REMARKS SAMPLE SAMPLE SAMPLE Copyright © 2012 Compass International, Inc. Copyright © 2012 Compass International, Inc. SECTION 7 | 109. 108. | SECTION 7 ARGENTINA Argentina is abounding in resources (minerals, timber, farm products / crops and beef); it has a skilled labor force and is one of South America’s principal countries / economies. Argentina borders four countries, Chile, Bolivia, Paraguay and Uruguay. DATA TABLE f> g> X> k> \> ]> ^> _> {> f|> ff> fg> fX> %:'3 ; 7 fk)|||)||| = -)9")3) k|>\|' 7g)^]]){|| 5#' :.~g]|3 :.~fX)k|| 6ff %'g9% $7%9%gf k>f\ "'H97^>\?f|>\g\ -g(X'5' purchase price fk> :'&3 &&&>> f\> 6' &3 '3 :G )f\ f]> gg|\|@ f^> %\k f_> 77 7~X|(~]| f{> 9##~fg>\|(~f_>\| g|> H #&#~_(~fX>\| gf> # >H97: * f>||+f>g\?f>^\ gg> -" >H97: * f>||+|>{g(|>{] gX> -;#=" >H97: * f>||+|>{|?|>{\ gk> =9 -) ); 7 Copyright © 2012 Compass International, Inc. ARMENIA Armenia is a landlocked country with Turkey to the west and Georgia to the north and Azerbaijan to the east. Armenia has high mountains and sweeping plain. It has a skilled and productive labor force. SAMPLE SAMPLE DATA TABLE f> g> X> k> \> ]> ^> _> {> f|> ff> fg> fX> fk> f\> f]> f^> f_> f{> g|> gf> gg> gX> gk> %:'3 f)k^|)||| = N)@):' X>k|' 7Xf)\|| 5#' :.~_>g|3 :.~\)]|| 6k(] %'_9% $7%9%g| X^k7. "'H97_>\?ff>\XX -g(X'5' purchase price :'&3 &&&>>' &&&> >' 6' &3 '3 :G )f\ gg|\|@ %X^k 77 7~fX(~g{ 9##~](~fg H #&#~X>\|(~^ # >H97: * f>||+f>\|?f>{| -" >H97: * f>||+|>{|(|>{k -;#=" >H97: * f>||+|>_\?|>{| =9 7' #} %#:> SAMPLE Copyright © 2012 Compass International, Inc. SECTION 7 | 185. 184. | SECTION 7 MEXICO Located south of the USA and north of Guatemala and Belize. With the advent of NAFTA a free trade pack with Canada and the USA, trade has just about quadrupled since 1994, the year NAFTA was implemented. Mexico does have a young hardworking workforce. Mexico has a serious drugs problem that has resulted in 100’s of police / army and drug traf=<= + DATA TABLE f> g> X> k> \> ]> ^> _> {> f|> ff> fg> fX> fk> f\> f]> f^> f_> f{> g|> gf> gg> gX> gk> %:'"3 =_){||)||| = %')F@)!) :)=)= ffk>\|' 7f){^g)k^| 5#' :.~f)|_|3 :.~ff)^{| 6g>\(k>\ %'(f9% $7%9%f] ff>_]= "'H97k>\?^>\g(\ -g(X'5' purchase price :'&3 &&&>( >'>' &&&> >3>' 6' &3 '3 :G )f\ > >3>' fg|?]|@ %\g 77 7~f_(~kg 9##~]>||(~{>|| H #&#~X(~] # >H97: * f>||+f>k|?g>X| -" >H97: * f>||+|>_^(|>{g -;#=" >H97: * f>||+|>_|?|>{| =9 $@)%')7 Copyright © 2012 Compass International, Inc. MONGOLIA Mongolia is a large landlocked country in Eastern / Central Asia. It shares borders with Russia to the north and China to the south, east and west. DATA TABLE f> g> X> k> \> ]> ^> _> {> f|> ff> fg> fX> %:'3 H;^X|)||| = .) g>{\' 7f)]k|)||| 5#' :.~k>\|3 :.~X)\\| 6ff(f\ %'fX9% $7%9%fX f)XX|%# "'H97_>\(ff>\X_ -g(X'5' purchase price :'&3 &&&>' >>'> 6' &3 ' :G )f\ gX|?\|@ %{^] 77 7~_(~g| 9##~X(~]>\| H #&#~f>\|(~X>|| # >H97: * f>||+g>g\?X>g\ -" >H97: * f>||+|>_{?|>{X -;#=" >H97: * f>||+|>^^?|>_\ =9 -# SAMPLE fk> f\> f]> f^> f_> f{> g|> gf> gg> gX> gk> SAMPLE SAMPLE Copyright © 2012 Compass International, Inc. SECTION 8 | 233. 232. | SECTION 8 Agreement: A consensus by two or more individuals or organizations. As it relates to construction, the term is synonymous with contract. An example of this is the agreement between owner and contractor when executing a construction project. Air bill: A shipping list or manifest record or document used by airlines for air freight; contains shipping instruction to the airline. Air cargo: A term used to describe goods or articles carried by air. Air freight: To transport or carry goods by air transport. Airway bill: Document used for shipment and transport of air freight by carriers; lists materials and equipment shipped, along with instructions costs, + AOQ: Average outgoing quantity Approve: To accept, concur, and endorse as satisfactory; implies that the object is approved. AQ: Any quantity AQL: Acceptable quality level Arbitration: The process by which parties agree to refer their disputes and claims to the resolution of a third, impartial and unbiased party (referred to as the arbitrator), rather than pursuing their disputes and demands in a court of law. Arrival date: The date materials and equipment are scheduled to arrive at the construction site. Arrival notice: Notice or document that a transporter sends to the purchaser when a shipment + Artisan’s lien: The lien of a mechanic or other skilled worker in connection with some-thing on which he or she has applied labor or materials, giving him or her right to maintain possession of it, < + ASQC: American Society for Quality Control As built drawings: Record drawings made during the construction process. As built drawings depict the locations, sizes, and nature of concealed items such as structural elements, devices, pipes, valves, and mechanical equipment: These drawings form a permanent record of the as-built condition of Copyright © 2012 Compass International, Inc. the building or facility. As is: Announces that the materials and equipment offered for sale are without warranty or any future guarantee. Assigned car: A rail freight car that has been + Assignment: The transfer or the change of rights or title to another party. ATC: Average total cost Award: The method used for selecting and or awarding a purchase order or contract. Attachment: A supplementary device designed < piece of equipment. Average cost: Cumulative average cost method of pricing stock. Back order: The part of an order that currently cannot be delivered at the planned date, but will be delivered at a later date. Banker’s acceptance draft: A document or = possible the payment of cash to an exporter of the goods. Bar code: used to aid / expedite timely input of purchasing data. Bargain: Agreement on the terms and conditions of an acquisition; also purchase of items at a price favorable to the buyer. Barter: The procedure of exchanging one kind of item for another, as opposed to trading by money. Batch: A quantity of goods that is made in one manufacturing operation. Best Value: The consequence / result needed in the procurement / acquisition of stipulated goods and services. Bid: A proposal to perform work or supply goods or service that have described verbally or in writing in bidding documents; bid is an offer to per + Bidding documents: Documents that typically include the advertisement or invitation to bidders, instructions to bidders, bid form, form and conditions < completely describe the work for which bidders can prepare proposals for the owner’s review and consideration an subsequent award. Bid opening: A formal meeting conducted at < opened, reviewed, tabulated, announced, and made available for public inspection. Bill: An invoice the freight carrier users to indicate to consignee or consignor the shipment description, weight, freight charges, taxes and other +| money due for services performed. Bill of exchange: A formal written document used to settle and pay an outstanding obligation or debt. Bill of lading: A transport company’s contract and receipt for materials and equipment which it agrees to transport from one location to another and to remit to a designated individual. Bill of materials: A list of all materials required on the construction project, consisting of all items indicated on drawings and described in the + Bill weights: The weight of an item shown on a freight bill. Binder: A temporary but binding commitment by an insurance company to furnish current furniture insurance coverage. B & O Tax: Business and occupation tax(s). Boiler plate: A term used to describe the standard terms and conditions contained with a purchased order or the clause described in a contract. Bonded warehouse: A warehouse under the control of the U.S. Treasury Department for observance and conformance of revenue and excise laws. Bonded performance: A bond used in connection with a contract; ensures the performance and completion of the scope, terms, and conditions contained within the contract. Bonds: A formal document(s) given by an insurance company as surety in the name of a prin < < + SAMPLE SAMPLE SAMPLE In construction, the main types of bonds are the bid bond, performance bonds, and payment bond. Book value: Present investment value on <= value less depreciation; the asset value of a building, facility, or item of equipment for accounting purposes; also, the value of outstanding shares of stock + Breach of contract: The failure to perform or discharge any of the obligations that are stated in the terms and conditions of a contract. Bulk materials: Materials bought in lots; purchased from a generic description or standard catalog description, and bought in medium to large quantities for issue as required. Examples are concrete, conduit, rebar, cable, pipe, timber and stone. Bulletin: A document used to request pricing contract is issued. If pricing is acceptable, a change order incorporates the requirements of the bulletin into the contract. Burden: The cost of operating a home, branch, +| < tract payments. In manufacturing operations, burden typically means operating over-head costs. Cancellation order: Annulment or the termination of an order. A written statement signed and approved by an authorized individual stating that the materials conform to the + A document, issued by the appropriate authority, in an exporting country } materials, or labor used in the manufacture of the < + C. & F.: (Cost and Freight); same as C.I.F., except marine insurance is not included in the selling price. Change order: A written directive issued after execution of the construction contract that authorizes = Copyright © 2012 Compass International, Inc.