Dictionary of Procurement Terms

Welcome to the NIGP Online Dictionary of Procurement Terms, the comprehensive reference for public purchasing terms and concepts.

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Search Results: 111-120 of 121 results for “B”

  • Buyer

    A purchaser or procurer of products and services. This title may also refer to an individual who is responsible for the procurement activities of an entity, also commonly referred to as a purchasing or procurement agent.

    See Also: Law of Agency, Principal, Agent

  • Buyer-Seller Relationships

    There are three principal relationships between Buyers and Suppliers. 1. Transactional: An arm’s-length relationship, wherein neither party is concerned with the well-being of the other. Price is the focus of the relationship. 2. Collaborative: A strategic relationship is created that results in the reduction of risk and uncertainty. This type of relationship creates interdependency and cooperation. 3. Alliance: Relationship is based on institutional trust. Alliance partners share a vision of the future where ethics take precedence over expediency.

  • Buyer’s Market

    An economic condition within a competitive marketplace that occurs when the supply of a product or service exceeds the demand. Generally results in lower prices more favorable to the buyer. (Harney, 1992)

  • Buyer’s Option

    The contractual right, established in a purchase document, to buy an item or service at a fixed price within a specified time.

    See Also: Option

  • Buyer’s Right of Routing

    The right of the buyer to select the carrier to be used for shipment of goods when the buyer pays freight charges; the buyer’s right to name the carrier must be made part of the sales contract before shipment of goods if supplier prepays the freight.

  • Buying (Seasonal) Calendar

    A buying plan which is designed to take advantage of lower seasonal prices, such as road ice chemicals purchased in summer.

  • Buying Allowance

    A temporary price reduction to resellers for purchasing specified quantities of a product. (ISM Glossary, 2000)

  • Buying Behavior

    The decision processes and actions of people who purchase and use products and services. The underlying motivational rationale for an individual’s buying decision. (Business, 2002)

  • Buying In

    Knowingly submitting a proposal or bid below the supplier’s anticipated cost with the expectation of increasing the contract amount after award through unnecessary or overpriced change orders. Commonly referred to as “low balling” a price.

    See Also: Lowball

  • Buying Plan

    Defines the goods and services to be procured within a set time frame, usually on an annual basis, as well as the method of procurement that will be used to procure each good and service. Also called Procurement Plan.

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