Maaz Ahmed Rana

Maaz Ahmed Rana5980

Request for Proposal (RFP):Requests for Proposal are issued by businesses and government agencies when in need of services or equipments from other businesses. They are usually published in trade journals, newspapers or online. They can also be sent to businesses, consultants or organizations considered capable to provide services or equipment listed, on the basis of a prior working relationship or reputation within an industry.

A Request for Quotation (RFQ): This is a standard business process intended on inviting suppliers into a bidding process for certain products or services. RFQ, is the same as IFB (Invitation For Bid). An RFQ, though, involves more than the price per item.

An Invitation for Bid (IFB):An invitation for bid (IFB) or invitation to bid (ITB) is an invitation to contractors or equipment suppliers, through a bidding process, to submit a proposal on a specific project to be realized or product or service to be furnished. IFB is the same as a Request for Quotation (RFQ).

Terms of Reference (TOR):These describe the purpose and structure of a project, committee, meeting, negotiation, or any similar collection of people who have agreed to work together to accomplish a shared goal. The terms of reference of a project are often referred to as the project charter.

A Letter of Intent (LOI):A letter of intent is a document that overviews the plans of an agreement between two or more parties, until the official finalization of a legal agreement. It is not a contract and cannot be legally enforced. Though it defines a serious commitment from one involved party to another.

A Letter of Support (LOS):It is a letter from a partner organization, major donor, grant maker, congressional representative, or other key stakeholder that describes a persuasive reason why a grant funder should support your grant application. It describes how the partner will support the project, which, in turn, lends credibility to your work. It is often submitted with a proposal or an application for grant funds.

BOO (Build-Own-Operate):Build; Own; Operate is a public-private partnership (PPP) project model in which a private organization builds, owns and operates some structure with a certain level of encouragement from the government. The government may offer financial incentives such as tax exemption, but doesn't provide direct funding. The developer owns and operates the facility on his own.

Build-Operate-Transfer (BOT) or Build-Own-Operate-Transfer (BOOT):This is a form of project financing, following a concession contract, in which a private organization receives a concession from the private or public sector to finance, design, construct, and operate a facility.

A Bill of Materials or Product Structure (BOM):This is a list of the raw materials, sub-assemblies, intermediate assemblies, sub-components, parts and the quantities of each needed to manufacture an end product.

Liquidated damages:These are the damages the amounts of which are defined by the parties during the formation of a contract for the injured party to collect as compensation upon a specific breach (e.g., late performance). They are also referred to as liquidated and ascertained damages.

An act of God:This is a legal term for events outside of human control, like sudden accidents, natural disasters, etc.

Cost, Insurance and Freight (CIF):CIF is a trade term that requires the seller to arrange for the carriage of goods by sea to a port of destination, and provide the buyer with the documents necessary to obtain the goods from the carrier.

Letter of Credit:A letter from a bank guaranteeing the seller that the buyer's payment to him will be received on time and for the correct amount. In case the buyer is unable to make payment , the bank will have to cover the full or remaining amount of the purchase.