Dictionary of Procurement Terms

A organized group whose purpose is to fix prices at a high level by restricting competition.

A reduction in the full cost of a good or service when payment is made within a specified time period. See also: Payment Terms, Prompt Payment Discount, Discount.

The total amount of cash or cashequivalent that an organization pays and receives.

Payment made to a contractor prior to initiating the performance of the contract.

A requirement for full payment for goods and services at the time of receipt.

A graphic illustration used in quality control that helps identify and sort possible causes for a problem or effect. Also known as a Fishbone Diagram.

Latin term meaning, “Let the buyer beware.” It implies that the purchaser/buyer is responsible for the quality assurance of a product or service.

Latin term meaning, “Let the seller beware.” It implies that the seller bears responsibility for product defects and inferior quality issues and must satisfy these concerns to the buyer’s satisfaction.