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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  • Chain of Command

    The line of authority that extends from the highest to the lowest levels of an organization. A hierarchical representation of the organization. May be depicted in an organizational chart. (Business, 2002)
  • Change Order

    A written alteration that is issued to modify or amend a contract or purchase order. A bilateral (agreed to by all parties) or unilateral (government orders a contract change without the consent of the contractor) request that directs the contractor to make changes to the contracted scope of work or specifications. In reference to construction contracts, it relates primarily to changes caused by unanticipated conditions encountered during construction not covered by the drawings, plans, or specifications of the project.
  • Change Order Authority

    The power or right of a public agency to unilaterally modify a contract without the express consent of the contractor. For example, certain supply contracts allow the agency to exceed purchase quantities within an agreed upon percentage range.
  • Changes Clause

    A contract clause that specifies the parameters of contract modifications that can be made. Example: Supply contracts typically limit the right to make changes to the method of delivery, place of delivery, or scope of work.
  • Channel of Distribution (or Marketing Channel)

    A sequence of marketing organizations that directs a product from the producer/manufacturer to the ultimate user/consumer. (Business, 2002)
  • Charette Process

    A public forum where the agency seeks the public’s input and to inform them of ideas and plans, generally, in upcoming construction projects. The public, as well as directly affected stakeholders, have the opportunity to voice their opinions and concerns during the development of the project scope of work and specifications in an effort to arrive at an optimum plan.
  • Charge-Back

    The process of charging the using entity for materials and supplies withdrawn from inventory or from a central stocking location.

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