Glossary

Term Description
ACP States The Africa, Caribbean and Pacific States signatories of the ACP-EC Partnership Agreement.
Addendum A document modifying the terms and conditions of a contract.
Administrative order Any instruction or order issued in writing by the Supervisor (W) or Project Manager (SER,SUP) to the Contractor regarding the execution of the contract.
Appropriate media Publication in the Official Journal of the European Union and on the EuropeAid website is obligatory for most contracts covered by this Guide. Publication in the press of beneficiary countries and, if need be, specialised publications may be necessary or advisable.
Assessor An expert with an in-depth knowledge of the issues covered by a grant programme who is engaged by a Contracting Authority to carry out a detailed written assessment of a grant application using the published evaluation grids. He/she cannot be a member of the Evaluation Committee.
Beneficiary country The country or state outside the European Union with which the European Communities have an agreed programme of cooperation.
Beneficiary of a grant Person who receives a grant (G).
Best value for money See “most economically advantageous offer”.
Bill of quantities The document containing an itemized breakdown of the works to be carried out in a unit price contract, indicating a quantity for each item and the corresponding unit price. (W).
Budget breakdown The schedule which breaks down the contract value according to the different items or services, stating out fee rate, unit prices and lump sums for each item provided (W, SER, SUP).
Call for proposals A public invitation by the Contracting Authority, addressed to clearly identified categories of applicant, to propose operations within the framework of a specific EU programme.
Candidate Any natural or legal person or group thereof that has sought an invitation to take part in a restricted or negotiated procedure.
Clearance The amount of expenditure incurred in accordance with the Contract which the Contracting Authority, after examination of the expenditure verification report or the supporting documents, accepts for deduction from the total sum of pre-financing under the Contract.
Commercial warranty The warranty the manufacturer provides for a defined period that the supply will be free from structural defects due to substandard material or workmanship, under conditions of normal commercial use and service. The Commercial warranty should not be confused with - and might go beyond - the warranty period of the contract (SUP).
Commission The Commission of the European Communities.
Competitive Dialogue Procedure only used for particularly complex contracts. A contract notice sets out the needs and requirements and the Contracting Authority opens a dialogue with candidates.
Competitive negotiated procedure Procedure without prior publication of a procurement notice, in which only candidates invited by the Contracting Authority may submit tenders.
Conflict of interests Any event influencing the capacity of a candidate, tenderer, contractor or grant beneficiary to give an objective and impartial professional opinion, or preventing it, at any moment, from giving priority to the interests of the Contracting Authority. Any consideration relating to possible contracts in the future or conflict with other commitments, past or present, of a candidate, tenderer, contractor or grant beneficiary. These restrictions also apply to any sub-contractors and employees of the candidate, tenderer, contractor or grant beneficiary. There is also a conflict of interests within the meaning of Article 52 of the Financial Regulation (Budget)/ Article 18.2 of the Financial Regulation (10th EDF) where the impartial and objective exercise of the functions of a player in the implementation of the budget or an internal auditor is compromised for reasons involving family, emotional life, political or national affinity, economic interest or any other shared interest with the beneficiary.
Consortium A grouping of eligible natural and legal persons or public entities which submits a tender or an application, under a tender procedure or in response to a Call for Proposals. It may be a permanent, legally-established grouping or a grouping which has been constituted informally for a specific tender procedure or Call for Proposals. All members of a consortium (i.e., the leader and all other partners) are jointly and severally liable to the Contracting Authority.
Consultant The party which contracts to perform the services (SER).
Contract An agreement, between two or more persons or entities, with specific terms and an undertaking to provide services, supplies and/or works in return for a financial consideration (SER, SUP, W).
Contract award procedure The procedure followed by a Contracting Authority to identify, and conclude a contract with, a suitable contractor to provide defined goods or services.
Contract budget A summary of the costs of performing the contract. The total of these costs is the contract value or contract price. Where grants are concerned: the budget shows the eligible costs for funding and the total costs. The income must also be detailed. Where works are concerned: the sum represents the initial estimate payable for the execution of the works or such other sum as ascertained by the final statement of account as due to the contractor under the contract.
Contracting Authority European Union, represented by the European Commission on behalf of and for the account of the beneficiary country/countries or the State or the entity concluding the contract as provided for (where appropriate) in the Financing Agreement.
Contractor Any natural or legal person or public entity or consortium of such persons and/or bodies selected at the end of the procedure for the award of the contract. The successful tenderer, once parties have signed the contract.
Corrigendum Correction of a notice already published in the Official Journal of the European Union and/or equivalent local publication and on the EuropeAid website.
Day Calendar day unless otherwise specified.
Direct award The award of one or more grants without organising a call for proposals. A direct award is only appropriate under certain, special circumstances and must always be the subject of an evaluation report.
Evaluation committee A committee made up of an odd number of members (at least three) with the necessary technical and administrative expertise to give an informed opinion on tenders or grant applications.
Execution period The period from contract signature until final payment and in no event later than 18 months after the provisional acceptance of the works or of the supply. This period includes the warranty and the final acceptance of the works or of the supply (SUP, W)./ The period from contract signature until final payment and in no event later than 18 months after the end of the implementation period (SER, G).
Expert A person engaged to provide the expertise required for the proper performance of a contract.
Explanatory note A summary at the beginning of a contract dossier or addendum dossier explaining to the reader the purpose and essential features of the proposed contract or addendum.
Final beneficiaries of a grant Those who will benefit from the project in the long term at the level of the society or sector at large (G).
Financing Agreement An agreement between the EC and the beneficiary country which determines the objectives and scale of a future programme of assistance.
Financial offer The part of a tender which contains all the financial elements of the tender, including its summary budget and any detailed price breakdown or cash-flow forecast required by the tender dossier.
Foreign currency Any currency permissible under the applicable provisions and regulations other than the Euro, which has been indicated in the tender.
Framework contract
General conditions The general contractual provisions setting out the administrative, financial, legal and technical clauses governing the execution of all contracts of a particular type.
Grant A direct payment of a non-commercial nature by the Contracting Authority to a specific recipient to implement an operation (or in some cases to finance part of its budget) in order to promote an EC policy aim (G).
Guidelines for applicants Document explaining the purpose of a Call for Proposals for grants. It sets out the rules regarding who may apply, the types of operations and costs which may be financed, and the evaluation (selection and award) criteria. It also provides practical information on how to complete the application form, what documents must be annexed, and rules and procedures for applying.
Head of Delegation The representative of the European Commission in third countries.
Implementation period The period from the signature, or alternative date if specified in the Special Conditions, until the provisional acceptance of the works (W) or until the provisional acceptance for the last lot has been issued (SUP) or until all tasks have been carried out (SER).
Invitation to tender Letter sent to selected candidates in a restricted procedure or competitive negotiated procedure inviting them to submit a tender.
Month Calendar month.
Most economically advantageous tender The tender proposal judged best in terms of the criteria laid down for the contract, e.g. quality, technical properties, aesthetic and functional qualities, after-sales service and technical assistance, delivery date or performance period, the price or lowest price. These criteria must be published in the procurement notice or stated in the tender dossier.
National currency The currency of the beneficiary country.
Negotiated procedure Procedure without prior publication of a procurement notice, in which the Contracting Authority consults the candidate or candidates of its choice and negotiates the terms of the contract with one or more of them.
Open procedure Calls for tender are open where all interested economic operators may submit a tender.
Operating grant Direct financial contribution, by way of donation, in order to finance the functioning of a body which pursues an aim of general European interest or has an objective forming part of a European Union policy (G).
Period A period begins the day after the act or event chosen as its starting point. Where the last day of a period is not a working day, the period expires at the end of the next working day.
Preferences (EDF only) Term used for describing the preferences given during the evaluation process to tenderers from ACP countries, when their tenders are technically and economically equivalent with tenders submitted by tenderers of non-ACP nationality (see article 26 of the Annex IV to the Cotonou Agreement).
Project manager The person responsible for monitoring the implementation of a project on behalf of the Contracting Authority.
Restricted procedure Calls for tender are restricted where all economic operators may ask to take part but only candidates satisfying the selection criteria and invited simultaneously and in writing by the Contracting Authorities may submit a tender.
Service contract A contract between a service provider and the Contracting Authority for the provision of services such as technical assistance or studies (SER).
Service provider Any natural or legal person or public entity or consortium of such persons and/or bodies offering services (SER).
Special Conditions The special conditions laid down by the Contracting Authority as an integral part of the tender or call for proposals dossier, including amendments to the General Conditions, clauses specific to the contract and the terms of reference (for a service contract) or technical specifications (for a supply or works contract).
Supplies All items which the Contractor is required to supply to the Contracting Authority, including, where necessary, services such as installation, testing, commissioning, provision of expertise, supervision, maintenance, repair, training and other such obligations connected with the items to be provided under the contract (SUP).
Supply contract Supply contracts cover the purchase, leasing, rental or hire purchase, with or without option to buy, of products. A contract for the supply of products and, incidentally, for siting and installation shall be considered a supply contract.
Target groups The groups/entities that will be directly positively affected by the project at the Project Purpose level.
Technical offer The part of a tender which contains all non-financial elements of the tender, i.e., all elements other than the financial offer which are required by the tender dossier. The technical offer must not contain any financial indications.
Tender A written or formal offer to supply goods, perform services or execute works for an agreed price.
Tender dossier The dossier which contains all the documents needed to prepare and submit a tender.
Tender procedure The overall process of putting a contract out for tender, starting with the publication of a procurement notice and ending with the award of the tendered contract.
Tenderer A natural or legal person or consortium thereof submitting a tender with a view to concluding a contract.
Terms of reference The document drawn up by the Contracting Authority setting out its requirements and/or objectives in respect of the provision of services, specifying, where relevant, the methods and resources to be used and/or results to be achieved (SER).
Works contract Works contracts cover either the execution, or both the design and execution, of works or a work related to one of the activities referred to in Annex I to Directive 2004/18/EC or the realisation, by whatever means, of a work corresponding to the requirements specified by the Contracting Authority. A 'work' means the outcome of building or civil engineering works taken as a whole that is sufficient of itself to fulfil an economic or technical function (W).
Written communications Certificates, notices, orders and instructions issued in writing under the contract.

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