The gradual lowering of asking price or the gradual raising of the offered price during negotiations, until the buyer and sell agree on a mutually agreed-upon price.
Purchase of the smallest quantities to satisfy the current need.
A negotiation strategy that involves aggressive, uncollaborative tactics intended to give an advantage to only one party.
A sound, widely-accepted currency that is unlikely to fluctuate greatly or depreciate suddenly.
Hazardous Material (HAZMAT)
Any material that, under the conditions of transportation or storage, is capable of posing an unreasonable risk to health, safety, or property. Includes material classified as explosive, flammable, corrosive, combustible, poisonous, toxic, biological or radiological, and compressed gases. May be referred to as HAZMAT.
A strategy of entering into a contract for the purpose of protecting against unfavorable pricing for commodities in an unstable market such as petroleum and agricultural products.
Hierarchy of Interpretation
Contract rendition and supplementation classified according to rank, capacity, or authority; order is conventionally conceived of as a multi-stage process in which various sources, including express terms, course of performance, course of dealing, trade usages, default rules, and general standards of reasonableness, are sequentially resorted to. The decision maker should not turn to any particular source before exhausting the previous ones, and in case of inconsistency, each source trumps the following ones.
Historically Underutilized Business (HUB)
Generally refers to minority and women-owned, and small businesses.
A public sector regulatory requirement primarily appearing in construction solicitation projects; it is designed to retain a predetermined monetary amount of the full payment or a stated length of time after the project is completed before entity payment is made to the prime contractor to ensure that subcontractors have been paid for their work and materials.
A contract clause that requires one or both parties to pay for costs and damages suffered by the other. Also known as indemnification.