Dictionary of Procurement Terms

Term that refers to when a contract does not specify a delivery date or dates but does include a time range during which the delivery could take place.

A type of contract in which the time of delivery is unspecified in the original contract, but rather is determined by the procurement professional during contract performance.

A type of contract that provides for the delivery of indefinite quantities—within stated limits—of supplies or services. These supplies or services are to be furnished during a fixed period, with deliveries or performance to be scheduled by placing orders with the contractor.

An agreement of one party to a contract to hold the other party to the contract harmless, or to secure or give security for the reimbursement of any loss or damage.

1. To protect against hurt or loss; to exempt from incurred penalties or liabilities. 2. To compensate or pay for damage.

A worker hired by a business or public entity to accomplish a given result who has the right to control or direct their own work as to the details and means by which the desired results are achieved.

Term that generally refers to the project manager’s and/ or consultant’s cost estimate for a pending project that reflects anticipated project costs for budgetary funding purposes, etc.

The linking of a rate to a standard index of prices, interest rates, share prices, or similar items; this occurs on contracts in which the pricing is tied to an index.