Dictionary of Procurement Terms

CANADA The actual performance contract. A submitted bid or proposal is normally viewed as a supplier's offer to enter into Contract “B” with the buyer. Once the buyer has evaluated the bids or proposals, accepts one of them, and executes a contract, Contract “B” is formed between the parties. Contract “B” usually specifies the actual work to be performed by the contractor in delivering goods, services, and/or construction, and the buyer's obligations to pay for those goods, services, and/or construction, if provided according to the terms of the contract.

A person or company that is under contract to transport people or goods for individual contract customers only. See also: Common Carrier, Private Carrier.

Maximum amount available for payment of cost and fee, which the contractor cannot exceed without approval of the entity.

Date on which the parties sign a written contract unless another date is specified in the contract term.

The date by which all contract obligations are scheduled to be met.

An action to change and extend a contract termination date pursuant to a provision in the original contract and typically upon written mutual agreement by both parties.

A file containing a copy of a contract and documentation of all contract administration actions.

Planned functions that are to be performed before the parties have signed a contract (e.g., development of the solicitation, scope of work, terms and conditions) and the negotiation of a contract that is mutually beneficial for the entity and the supplier.

A term generally used in construction projects in seeking a good faith effort on the part of the prime contractor to have a certain level of minority subcontracting participation in the entity’s project. See also: Goal, Set-Aside.

The overarching process that includes the functions of both contract formation and contract administration. See also: Surveillance, Contract Administration.