Glossary
Search a term and see its short definition, legal basis and related decisions.
- GLOSSARY2886Public Real Estate17 October 2024
Loss to the Treasury
The insufficient or late assessment of the total taxes that ought to be assessed on an entity and related persons by reason of prices and amounts determined contrary to the arm's length principle. Loss to the public purse is a concept governed by Law No. 5018 and relates to public expenditure, whereas loss to the Treasury is governed by the tax legislation and relates to public revenue in the…
- GLOSSARY4734Tender Process Disputes17 October 2024
Referee Laboratory
In goods procurement tenders, the procedure by which, where the laboratory inspection of the materials delivered by the contractor has not been found satisfactory, the matters rejected are re-examined in another laboratory upon the contractor's objection and request. The result given by the referee laboratory is final as between the contracting authority and the contractor. The laboratories that…
- GLOSSARY4735Financial Disputes17 October 2024
Progress Payment Deduction
Deductions laid down in the contract and/or by the relevant legislation, made from the amount of work completed in interim or final progress payment certificates. They include tax, social security, the performance bond, the additional performance bond, acceptance deficiencies, workers' claims such as wages and entitlements, penalties, and attachment or enforcement deductions.
- GLOSSARY4734Financial Disputes17 October 2024
Progress Payment
The amount that contractors become entitled to receive from the contracting authority, under the previously agreed specifications and contractual provisions, in consideration for the goods supplied, the services performed and the works carried out. The definition falls into two by type of contract. In unit price contracts, it is the amount paid to the contractor after deducting, from the amount…
- GLOSSARY4734Tender Process Disputes17 October 2024
Current Index
In works and service contracts, the index for the implementation month.
- GLOSSARY4734Tender Process Disputes17 October 2024
Current Minimum Wage
The gross minimum wage in force, for workers outside agriculture and over sixteen years of age, in the month in which the works are to be carried out in accordance with the work programme approved by the contracting authority.
- GLOSSARY4734Tender Process Disputes17 October 2024
Lump Sum Contract
In goods or service procurements, a contract drawn up on the total price offered by the tenderer for the whole of the work, whose detailed characteristics and quantity are determined by the contracting authority.
- GLOSSARY4734Tender Process Disputes17 October 2024
Criminal Liability of Officials
The provisions governing the administrative, financial and criminal measures applicable to persons involved in the tender and contract process where they act contrary to the legislation. Criminal liability is laid down separately in Article 30 of Law No. 4734 for the tender process and in Article 28 of Law No. 4735 for the contract performance process. The tender officer, the chair and members of…
- GLOSSARY4734Tender Process Disputes17 October 2024
Insurance Including Extended Maintenance Period Cover
In works contracts, the insurance the contractor is required to take out under the General Conditions of Construction Insurance (All Risks) in force, in respect of the period between the date of provisional acceptance and the date of final acceptance.
- GLOSSARY4735Contract Disputes17 October 2024
Provisional Acceptance Deficiencies
In contracts for works, the taking from the contractor, with each progress payment certificate issued, of a letter of guarantee equal to 3% of the amount of work performed. The letter of guarantee is returned to the contractor within thirty days after the date of approval of provisional acceptance where there are no deficiencies, and, where there are, after those deficiencies have been made good…
- GLOSSARY4735Contract Disputes17 October 2024
Date of Provisional Acceptance
The date on which the works subject to the contract were completed in accordance with the tender documents. It is determined by the provisional acceptance commission and stated in the provisional acceptance record for works. The record is signed by the commission and by the contractor or its representative. The rules on how provisional acceptance procedures are carried out and concluded are…
- GLOSSARY4735Contract Disputes17 October 2024
Provisional Acceptance
The acceptance procedure carried out by the provisional acceptance commission, upon the contractor's request to the contracting authority, where the whole of the works subject to the contract, or the parts for which partial acceptance is provided, have been completed in accordance with the tender documents and in good time. The rules on how provisional acceptance procedures are carried out and…
- GLOSSARY4735Financial Disputes17 October 2024
Interim Progress Payment Certificate
The payment, by way of interim progress payment certificates, of amounts due to the contractor for the work performed and preparatory materials supplied in a given period, without constituting final payment or an acquired right. In service procurements it is issued for the periods specified in the contract where the service is performed continuously over a period or the work can be divided into…
- GLOSSARY4735Contract Disputes17 October 2024
Physical Inspection
Carried out during the supervision, inspection and acceptance process in contracts under goods procurement tenders. A commission of at least three members, an odd number, one of whom is a specialist in the work, checks visually and by the senses whether the physical characteristics of the goods delivered by the contractor conform to the characteristics specified in the tender documents. Goods…
- GLOSSARY4735Financial Disputes17 October 2024
Price Difference
The amount to be paid or deducted in accordance with the principles on price differences applicable to goods and service procurements and works: in unit price contracts, for the goods items delivered to the contracting authority, the work items performed during the implementation month and the preparatory materials; and in lump sum or lump sum turnkey contracts, for the quantities of goods…
- GLOSSARY4734Tender Process Disputes17 October 2024
Non-Price Criterion
In tenders where the economically most advantageous tender is to be determined by taking into account non-price criteria alongside price, criteria such as operating and maintenance cost, cost effectiveness, productivity, quality and technical merit, and time, determined having regard to the nature of the work subject to the tender.
- GLOSSARY4734Tender Process Disputes17 October 2024
Electronic Auction
The repeated process by which new prices submitted electronically by way of reduction, or new values relating to particular tender components, are reassessed and ranked following the evaluation of tenders, using automatic evaluation methods by means of an electronic tool.
- GLOSSARY4735Contract Disputes17 October 2024
Additional Performance Bond
In works tendered on the basis that a price difference will be paid, the additional security taken, on instruments accepted as security, at a rate of 6% of the amount of the increase where an increase occurs in the contract price as a result of the price difference to be paid.
- GLOSSARY4734Tender Process Disputes17 October 2024
Economic and Financial Standing Documents
Documents listed in subparagraph (a) of Article 10 of Public Procurement Law No. 4734, headed qualification rules for participation in a tender. They may be required from tenderers as qualification documents according to the nature and scope of the tender. They comprise documents obtained from banks showing financial standing, the balance sheet or the necessary sections of it or, failing that…
- GLOSSARY4734Tender Process Disputes17 October 2024
Economically Most Advantageous Tender
The tender submitted by the tenderer to whom the tender is awarded, determined either on the basis of price alone or by also taking into account, alongside price, criteria other than price such as operating and maintenance cost, cost effectiveness, productivity, quality and technical merit.