Administrative order

Any instruction or order issued in writing by the Supervisor (W) or Project Manager (SER) to the Contractor regarding the execution of the contract (SER, W)  

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)  

Breakdown of the overall price

A heading-by-heading list of the rates and costs making up the price for a lump sum (global price) contract. (SUP, 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.  

Clearance

The amount of expenditure incurred in accordance with the Contract which the Contracting Authority, after examination of the expenditure verification report, accepts for deduction from the sum total of pre-financing under the Contract.

Commission

The Commission of the European Communities.  

Competitive Dialogue (Budget only)

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 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.  

Contract price

See "Contract budget"  

Contract description

Brief outline (maximum 10 lines) of the contract for inclusion within a procurement notice and an explanatory note.  

Contract value

See "Contract budget"  

Contracting Authority

The European Commission, acting for and on behalf of the beneficiary country, in the case of centralised approach. The Contracting Authority appointed by the government of the beneficiary country, in the case of decentralised approach.  

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 on the EuropeAid website.  

Day

Calendar day unless otherwise specified.  

Dayworks

Varied work inputs subject to payment on an hourly basis for the Contractor's employees and plants (W)  

Description of the Operation

A detailed description of the proposed project and its various activities (preparation, implementation, evaluation, etc).  

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.  

Direct labour operations

Contracts executed by public or public-private agencies or services of the beneficiary country, where that country's administration possesses qualified managers.  

Drawings

Drawings provided by the Contracting Authority and/or the Supervisor, and/or drawings provided by the Contractor and approved by the Supervisor, for the carrying out of the works (W)  

DSA (Daily Subsistence Allowance)

(see perdiem)  

Dynamic purchasing system

An electronic procedure used for making commonly used purchases. It is limited in duration and open throughout its validity. For each individual contract a contract notice is published inviting all the contractors admitted to the system.  

EC

The European Commission  

EU

The European Union  

Economic operator

Covers contractors, suppliers and service providers.  

European Commission

The Commission of the European Communities.  

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 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)  

Expert

A person engaged by a contractor 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.  

Fee-based contract

A contract under which the services are provided on the basis of fixed fee rates for each day worked by experts. (SER)  

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).  

Final acceptance certificate

Certificate(s) issued by the Supervisor to the Contractor at the end of the maintenance period stating that the Contractor has completed his obligations to construct, complete, and maintain the works concerned. (W)  

Financing Agreement

An agreement between the EC and the beneficiary country (known as a Financing Memorandum in the context of Phare and Ispa) 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 cashflow forecast required by the tender dossier.  

Financing Memorandum

An agreement between the EC and the beneficiary country (known as a Financing Agreement in the Financial Regulation and in all EC external aid programmes other than Phare and Ispa) which determines the objectives and scale of a future programme of assistance.  

Foreign currency

Any currency permissible under the applicable provisions and regulations other than the Euro, which has been indicated in the tender.  

Framework contract

A framework contract is a contract concluded between a Contracting Authority and an economic operator for the purpose of laying down the essential terms governing a series of specific contracts to be awarded during a given period, in particular as regards the duration, subject, prices, conditions of performance and the quantities envisaged. The Contracting Authority may also conclude multiple framework contracts, which are separate contracts with identical terms awarded to a number of suppliers or service providers. Not to be confused with framework partnership agreements, through which the Commission establishes long-term cooperation with grant beneficiaries (used by ECHO).  

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.  

General damages

The sum, not stated previously in the contract, which is awarded by a court or arbitration tribunal, or agreed between the parties, as compensation payable to an injured party for a breach of the contract by the other party.  

Global price contract

A contract under which the services are performed for an all-inclusive fixed price. (SER)  

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).  

Hybrid contract

A contract between the Contracting Authority and a service provider, supplier or construction firm covering two or more of the following: works, supplies and services.  

Grant programme

A programme which determines the objectives and scale of assistance in the form of grants for operations promoting EC policy aims (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.  

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.  

Liquidated damages

The sum stated in the contract as compensation payable by the Contractor to the Contracting Authority for failure to complete the contract or part thereof within the periods under the contract, or as payable by either party to the other for any specific breach identified in the contract.  

Maintenance period

The period stated in the contract immediately following the date of provisional acceptance, during which the Contractor is required to complete the works and to remedy defects or faults as instructed by the Supervisor (W)  

Mixed contract

See "Hybrid contract"  

Modification

An instruction given by the Supervisor which modifies the works (W)  

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 tenderdossier.  

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.  

Operational 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.  

Per diem

Per diem is an allowance paid to consultants in the framework of EC-funded external aid contracts and in case of missions requiring an overnight stay away from the country of residence of the expert. The applicable rates to the per diems must not exceed the scales detailed in the official table published by the EC.  

Project

The project in relation to which the services/works/supplies are to be provided under the contract.  

Project manager

The person responsible for monitoring the implementation of a project on behalf of the Contracting Authority.  

Provisional sum

A sum included in the contract and so designated for the implementation of works or the supply of goods, materials, plant or services, or for contingencies, which sum may be used in whole or in part, or not at all, as instructed by the Supervisor (W).  

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).  

Services

Activities to be performed by the Consultant under the contract such as technical assistance, studies, training and designs (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).  

Study contract

A service contract between a service provider and the Contracting Authority concerning, for example, identification and preparatory studies for projects, feasibility studies, economic and market studies, technical studies, evaluations and audits (SER).  

Successful applicant

The applicant selected at the end of a call for proposals procedure for the award of contract.  

Successful Tenderer

The tenderer selected at the end of a tender procedure for the award of contract.  

Supervisor (Engineer as per FIDIC rules)

The legal or natural person responsible for monitoring the execution of the contract on behalf of the Contracting Authority and/or the Commission, where the latter is not the Contracting Authority (W)  

Supervisor's representative

Any natural or legal person, designated by the Supervisor as such under the contract, and empowered to represent the Supervisor in the performance of his functions, and in exercising such rights and/or powers as have been delegated to him. In this case, references to the Supervisor will include his representative (W).  

Supplier

Any natural or legal person or public entity or consortium of such persons and/or bodies offering to supply products (SUP).  

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 assistance contract

A contract between a service provider and the Contracting Authority, under which the service provider exercises an advisory role, directs or supervises a project, provides the experts stipulated in the contract or acts as a procurement agent.  

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 compiled by the Contracting Authority and containing all the documents needed to prepare and submit a tender.  

Tender Price

The sum stated by the tenderer in his tender for carrying out the contract.  

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

Any natural or legal person or consortium thereof submitting a tender with a view to concluding a contract.  

Technical specifications

The document drawn up by the Contracting Authority setting out its requirements and/or objectives in respect of the provision of supplies or works, specifying, where relevant, the methods and resources to be used and/or results to be achieved(SUP, W).  

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).  

Time limits

Those periods in the contract which shall begin to run from the day following the act or event which serves as the starting point for those periods. Should the last day of the period fall upon a non-working day, the period shall expire at the end of the first working day following the last day of the period.  

Warranty obligations

The warranty of the Contractor that the supplies are new, unused, without defects, of the most recent models and incorporate all recent improvements in design and materials. This warranty must remain valid for a maximum of 1 year after provisional acceptance. See article 32 of the General Conditions (SUP).  

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).