Dictionary of Procurement Terms

A claim filed by a contractor or an owner for unanticipated delays to a project. Delay claims require significant documentation and are based in part on cost accounting concepts. When a contractor delays a project, the owner can recover one of two types of damages: liquidated or actual. The components of a Contractor Delay Claim include indirect costs, home office overhead, increased material direct costs, lost productivity, and other damages directly related and attributable to a delay.

Authorized or appointed individuals, outside the procurement department, who are delegated the authority under an entity’s rules and procedures to make purchases, generally small dollar, on behalf of an entity.

The conferring of authority by someone who has it to another person to accomplish a task.

1. The actual contractual work product as defined in the statement of work; the desired goods or services described in a statement of requirement, specifications, scope of work, or other similar solicitation component to be provided under the contract. (Australia) 2. The completion of a milestone or the accomplishment of a task that can be measured and verified and may be a unit by which a contractor or consultant may be paid. See also: Milestone.

The physical transfer of possession from one party to another, as from a carrier, supplier, or contractor to the purchaser. See also: Free on Board (F.O.B.) Destination, Freight Collect, Freight Collect and Allowed, Freight Prepaid and Added, Freight Prepaid and Allowed, Free on Board (F.O.B.) Origin, Freight Prepaid and Charged Back.

Date or dates by which a shipment is to be delivered to a purchaser or by which a service must be completed.

An indefinite delivery/indefinite quantity contract for supplies or services that provides for the issuance of orders for services or supplies during the contract period. May also be referred to as a task order contract.

The requested date by which all goods or services must be delivered.

A delivery plan indicating the time of the beginning and completion of each delivery.

Conditions in a contract regarding freight charges, place and time of delivery, or method of transportation. See also: Free on Board (F.O.B.) Destination, Freight Collect, Freight Collect and Allowed, Freight Prepaid and Added, Freight Prepaid and Allowed, Free on Board (F.O.B.) Origin, Freight Prepaid and Charged Back.