# Public Procurement Lexicon

Standard English terminology for public procurement: tenders, concessions, PPP/PFI, state aid, EU procurement directives, public contracts, and related instruments.

## Core Procurement Terms

| Correct English term | Usage / meaning | Avoid |
|---|---|---|
| public contract / public procurement | General term for all contracts where the contracting authority is the buyer. | procurement (too vague) |
| works contract | Contract for the supply of labor and materials to execute construction works. | construction contract (less precise) |
| service contract | Contract for the provision of services. | services agreement (less precise) |
| supply contract | Contract for the provision of goods. | goods contract (less precise) |
| concession | Agreement transferring operational risk to the concessionaire; distinct from a purchase contract. | award agreement (too vague) |
| works concession | Concession for construction and/or operation of works infrastructure. | — |
| service concession | Concession for the supply and operation of services. | — |
| public-private partnership (PPP) | Structured arrangement between public authority and private entity to deliver services. UK: PFI (Private Finance Initiative). | partnership (less precise) |
| project finance / PFI | Financing structure for large projects, especially PPP. | — |
| contracting authority | Public entity responsible for commissioning public contracts. | purchasing authority (less precise) |
| contracting entity | Utilities or other entities subject to the Utilities Directive. | contracting body (less precise) |
| economic operator | Any natural or legal person offering goods or services in a tender. | market participant (less precise) |
| tenderer / bidder | Party submitting an offer in response to a tender. | offeror (less precise in procurement context) |
| successful tenderer / contractor | Party awarded the contract. | awardee (ambiguous outside procurement) |
| subcontractor | Party contracted by the main contractor to supply part of the work/services. | subcontracted party (less precise) |
| temporary grouping / joint venture / consortium | Association of economic operators to participate in a tender. | partnership (less precise) |
| reliance on third-party resources | Reliance by an operator on another entity's technical, financial, or professional capacity (EU procurement concept). | outsourcing capacity (less precise) |
| permanent consortium | Long-term grouping of operators; distinct from a temporary grouping. | persistent partnership (ambiguous) |
| social value / social considerations | Requirements for social outcomes (employment, training, environmental sustainability) as part of award criteria or contract conditions | Social impact (less precise) |
| reserved contract | Contract reserved for sheltered workshops, social enterprises, or operators employing disadvantaged persons (EU Directive 2014/24/EU, Art. 20) | Protected contract (less standard) |

## Tender Process Terms

| Correct English term | Usage / meaning | Avoid |
|---|---|---|
| procurement procedure / tender procedure | General term for the method by which a contract is awarded. | — |
| open procedure | Procurement open to all interested economic operators. | — |
| restricted procedure | Procurement open only to pre-qualified or invited operators. | — |
| negotiated procedure | Procurement where terms are negotiated with selected operators. | — |
| competitive dialog | Structured interactive process to develop contract terms with qualified participants. | — |
| innovation partnership | Procedure designed to develop innovative solutions and subsequently purchase them. | — |
| negotiated procedure without prior publication | Negotiated procedure used in specific circumstances (emergency, insufficient tenders, etc.). | — |
| contract notice / tender notice | Published announcement inviting tenders. | procurement announcement (less precise) |
| prior information notice (PIN) | Advance notice of planned procurement; often published six months ahead. | advance notice (too vague) |
| contract award notice | Notice published after a contract is awarded. | award announcement (less precise) |
| tender specifications / tender rules | Document setting out the requirements and conditions for the contract. | bid rules; bid specifications (less precise) |
| specifications | Technical and performance requirements for the goods or services. | specifications document (too vague) |
| special conditions / particular conditions | Specific contractual terms applying to a particular contract. | contract schedule (less precise) |
| general conditions | Standard terms applying to all contracts of that type. | contract template (less precise) |
| invitation to tender | Formal request inviting selected operators to submit tenders. | request for proposal (less precise) |
| tender / bid | Offer submitted by an economic operator in response to a procurement notice. | offer (less precise in procurement context) |
| financial offer / price tender | The cost/price component of a bid. | price proposal (less precise) |
| technical offer / technical proposal | The technical and quality component of a bid. | technical submission (less precise) |
| envelope | Container for tender documents; often used metaphorically. | package; submission (less precise) |
| opening of tenders | Formal procedure to open and record submitted tenders. | bid opening (less precise) |
| evaluation committee / tender board | Committee responsible for evaluating tenders against award criteria. | procurement committee (less precise) |
| award criterion | Basis for selecting the successful tender. | selection basis (less precise) |
| most economically advantageous tender (MEAT) | Award criterion balancing price and quality (or other non-price factors). EU standard. | best value (ambiguous) |
| lowest price | Award criterion selecting the tender with the lowest cost. | minimum cost (less precise) |
| best price-quality ratio | Award criterion balancing cost against technical merit or other factors. | price-quality balance (less precise) |
| abnormally low tender | Tender with a price or cost substantially below market rates, triggering investigation. | unusually low bid (less precise) |
| abnormality check / tender verification | Process to verify whether a tender is abnormally low. | price verification (less precise) |
| award | Decision to select a successful tenderer. | selection decision (less precise) |
| provisional award | Conditional award, pending standstill or other procedural requirements. | conditional award (less precise) |
| final award / contract award | Confirmed award after all standstill/review periods have expired. | binding award (less precise) |
| execution of the contract | Signing and commencement of the contract. | contract signature (less precise) |
| standstill period / Alcatel period | Mandatory waiting period (usually 10 calendar days) after award notice, during which unsuccessful tenderers may challenge the decision. EU requirement. | — |
| procurement challenge / review proceedings | Formal procedure for unsuccessful tenderers to challenge a procurement decision. | legal challenge (less precise) |
| framework agreement | Long-term agreement with one or more suppliers to supply goods/services at agreed prices over a specified period; used for subsequent call-offs. EU procurement concept. | — |
| dynamic purchasing system (DPS) | Electronic system for purchasing commonly used, readily available goods and services; open to new suppliers at any time. EU procurement concept. | — |
| Teckal exemption / in-house exception | Exception allowing contracting authority to award contract without tender to entity it controls (meets ownership + activity tests); EU Court of Justice concept | in-house award; direct award (less precise) |
| division into lots | Division of contract into separate lots to facilitate SME participation (EU Directive 2014/24/EU, Art. 46); contracting authority must explain decision not to divide | Splitting of contract (informal) |
| lot | Discrete portion of a contract that may be tendered and awarded separately | Part; Section (too vague) |
| variant / alternative bid | Alternative tender offering different technical solution to that specified; must be expressly permitted by contracting authority | Alternative offer (less precise) |
| e-procurement / electronic procurement | Mandatory use of electronic means for procurement procedures (submission, communication, publication); mandatory across EU since 2018 | Online procurement (informal) |
| electronic submission | Submission of tenders via electronic platform | Online submission (informal); Digital tender |

## Qualification and Eligibility

| Correct English term | Usage / meaning | Avoid |
|---|---|---|
| participation requirements / eligibility criteria | Conditions that economic operators must meet to participate in a tender. | qualification requirements (less precise) |
| technical capacity requirements | Criteria demonstrating the operator's ability to perform the contract (expertise, equipment, staffing). | technical qualifications (less precise) |
| economic and financial standing | Criteria demonstrating the operator's financial stability and ability to pay. | financial capacity (less precise) |
| professional suitability | Criteria establishing professional qualifications and absence of relevant grounds for exclusion. | professional qualifications (less precise) |
| ESPD (European Single Procurement Document) | EU-standard self-certification form replacing multiple national forms; used to establish eligibility. | self-certification form (less precise) |
| grounds for exclusion | Circumstances under which an economic operator is excluded from a tender. | disqualification grounds (less precise) |
| mandatory grounds for exclusion | Grounds for exclusion required by EU directives (criminal convictions, professional misconduct, insolvency, etc.). | required disqualifications (less precise) |
| discretionary grounds for exclusion | Grounds for exclusion at the contracting authority's discretion (quality failures, environmental violations, etc.). | optional disqualifications (less precise) |
| self-declaration | Signed statement by the economic operator confirming compliance with eligibility criteria. | signed statement (less precise) |
| tender guarantee / bid bond | Security posted by the tenderer to ensure performance of tender obligations. | bid security (less precise) |
| performance guarantee / performance bond | Security posted by the contractor to ensure execution of contract obligations. | contract security (less precise) |
| surety bond | Guarantee by a third party (bank, insurance company) to secure obligations. | third-party guarantee (less precise) |

## Contract Execution Terms

| Correct English term | Usage / meaning | Avoid |
|---|---|---|
| works supervisor / engineer | Person responsible for overseeing execution of works on behalf of the contracting authority. | site manager (less precise) |
| project manager (contracting authority) | Senior official responsible for managing the contract on behalf of the authority. | contract administrator (less precise) |
| contract manager | Person responsible for administering the contract and ensuring compliance. | execution officer (less precise) |
| works accounts | Records of all transactions, claims, and certifications during contract performance. | project records (less precise) |
| interim payment certificate / progress report | Certification authorizing periodic payment for work completed (UK: interim certificate). | progress payment (less precise) |
| payment certificate | Certificate authorizing payment upon completion of specific contract milestones. | payment authorization (less precise) |
| final acceptance / commissioning | Formal acceptance that the works or services have been completed and meet contract specifications. | completion inspection; final testing (too vague) |
| progressive testing | Inspection and testing carried out during execution, not after completion. | interim inspection (less precise) |
| acceptance certificate | Formal document confirming completion and acceptance of works/services. | completion certificate (less precise) |
| handover record | Document recording the transfer of completed works/services from contractor to authority. | delivery receipt (less precise) |
| contract variation / change order | Authorized modification to the scope, specifications, or terms of the contract. | contract amendment (less precise) |
| reservation / claim | Formal notice by the contractor of a dispute or claim for additional payment or time. | formal notice (less precise) |
| registration of claims | Formal recording of contractor's reservations or claims. | claim registration (less precise) |
| liquidated damages | Pre-agreed compensation payable for failure to meet contractual obligations (e.g., delay). Use "liquidated damages" — not "penalties" — in English-law drafting: pure penalty clauses risk unenforceability under the rule against penalties (Cavendish Square v Makdessi [2015] UKSC 67). See cross-file note in general-legal.md and litigation-settlement.md. | penalties (risks unenforceability at English common law); damages (less precise); fines |
| termination of the contract | Ending of the contract before completion, usually due to breach or default. | contract cancellation (less precise) |
| withdrawal | Early termination by either party, often with agreed notice. | early exit (less precise) |
| price revision / price adjustment | Adjustment of contract price to account for inflation or changed circumstances. | price increase (less precise) |

## EU Procurement Directives

| Correct English term | Usage / meaning | Avoid |
|---|---|---|
| national public contracts code | National legislation implementing EU procurement directives; varies by member state. | public procurement law (too vague) |
| Directive 2014/24/EU (Public Sector Directive) | EU directive governing procurement by public authorities. | — |
| Directive 2014/25/EU (Utilities Directive) | EU directive governing procurement by utilities (water, energy, transport, postal services). | — |
| Directive 2014/23/EU (Concessions Directive) | EU directive governing procurement of works and service concessions. | — |
| EU threshold | Monetary value above which EU procurement rules apply; below this, national rules may apply. | monetary threshold (less precise) |
| below-threshold | Procurement below the applicable EU threshold. | sub-threshold procurement (less precise) |
| above-threshold | Procurement above the applicable EU threshold; subject to full EU rules. | supra-threshold procurement (less precise) |
| Official Journal of the EU (OJEU) | Publication where all EU-wide procurement notices are published. | official gazette (less precise) |
| TED (Tenders Electronic Daily) | Online database of EU procurement notices published in OJEU. | — |

## State Aid Terms

| Correct English term | Usage / meaning | Avoid |
|---|---|---|
| state aid | Gratuitous or preferential financial advantage to an undertaking by a public body, distorting competition. | public subsidy (less precise) |
| aid scheme | Pre-authorized framework under which state aids may be granted to multiple beneficiaries. | subsidy program (less precise) |
| individual aid | One-off state aid granted to a specific undertaking. | specific subsidy (less precise) |
| notification | Submission of a state aid measure to the European Commission for clearance. | submission to authorities (less precise) |
| block exemption | Category of state aid deemed compatible with EU law and exempted from notification. | exemption category (less precise) |
| General Block Exemption Regulation (GBER) | EU regulation exempting certain aid from notification requirements; commonly applied to SMEs, training, and environmental aid. | block exemption rule (less precise) |
| de minimis | Aid below specified thresholds (EUR 200,000 over 3 years) automatically exempted from notification. | — |
| service of general economic interest (SGEI) | Public service obligation imposed on an undertaking in the general interest (postal, transport, utilities, etc.). UK variant: "public service obligation". | essential service (less precise) |
| public service compensation | Compensation paid to an undertaking for losses incurred in providing a SGEI. | service subsidy (less precise) |
| private investor test / market economy operator test | Test to determine whether state support is market-compliant; would a private investor accept the same terms? | market compliance test (less precise) |
| cumulation of state aid | Receipt of aid from multiple sources for the same eligible costs; subject to cumulation rules | stacking of subsidies, accumulation of aid |

## EU Grant and Funding Terms

| Correct English term | Usage / meaning | Avoid |
|---|---|---|
| call for proposals / call | Open invitation to submit grant applications under a specific program or measure | "invitation to tender" (that is procurement, not grants) |
| grant application / application | The formal submission by an applicant seeking funding under a call | — |
| grant agreement | The agreement between the granting authority and the beneficiary, setting out the terms of the funding | "subsidy contract" (calque) |
| grant award / award decision | The decision by the granting authority to fund a specific application | "grant of subsidy" |
| beneficiary | The entity receiving the grant | "subsidized party" |
| applicant | The entity submitting a grant application | "applicant organization" (drop "organization" when redundant) |
| eligible costs / eligible expenditure | Costs that qualify for reimbursement under the grant scheme | "financed costs" |
| co-financing / co-funding | The beneficiary's own contribution required alongside the grant | "own resources share" (calque) |
| implementation period | The period during which the funded activities must be carried out | "realization period" (calque) |
| milestone | A defined checkpoint in the project timeline, often triggering a payment tranche | — |
| disbursement / payment tranche | A scheduled payment of grant funds to the beneficiary | "subsidy installment" |
| recovery of funds / clawback | The granting authority's right to reclaim funds in case of non-compliance | "restitution of subsidy" |
| Recovery and Resilience Facility (RRF) | The EU's post-pandemic recovery instrument under NextGenerationEU | — |

## Miscellaneous / General Provisions

| Correct English term | Usage / meaning | Avoid |
|---|---|---|
| change of control | See canonical definition in finance-banking.md. Public-procurement context: may trigger re-tendering or authority consent requirements (Article 72 Directive 2014/24/EU). | — |

## Section Headings

| Correct English heading | Avoid |
|---|---|
| SUBJECT MATTER OF THE CONTRACT | scope of work (less standard) |
| CONTRACT VALUE | price; cost (less precise) |
| TERM / DURATION | period; contract timeline (less precise) |
| ELIGIBILITY REQUIREMENTS | qualification criteria (less precise) |
| AWARD CRITERIA | selection criteria (less precise) |
| GUARANTEES / BONDS | security; collateral (less precise) |
| SUBCONTRACTING | subcontracted work (less precise) |
| CONTRACT PERFORMANCE | contract execution (less precise) |
| ACCOUNTS AND PAYMENTS | financial records; payment terms (less precise) |
| DISPUTES / DISPUTES AND REMEDIES | conflict resolution; claims procedure (less precise) |
| GENERAL PROVISIONS | standard terms; miscellaneous terms (less precise) |

## Notes

- **EU vs national procurement**: The three directives (2014/24, 2014/25, 2014/23/EU) set the floor for procurement rules across the EU. National codes often provide stricter requirements or additional procedures. Always identify which framework governs the transaction.

- **Contract vs concession**: A public contract transfers goods/services to the authority; a concession transfers operational and/or financial risk to the concessionaire. This distinction is fundamental across all EU procurement frameworks.

- **MEAT and award criteria**: The shift from "lowest price" to "most economically advantageous tender" reflects modern procurement favoring quality, sustainability, and innovation. Always clarify which criterion applies.

- **Standstill period (Alcatel period)**: The mandatory 10-day waiting period after award notice is a critical procedural safeguard. Failure to observe it can invalidate the award.

- **Framework agreements and dynamic purchasing systems**: These are modern EU procurement tools enabling flexibility and value for money, especially for repetitive purchases of standard goods and services.

- **ESPD**: Replaces multiple national forms; substantially standardizes eligibility evidence across the EU, though national interpretation may vary.

- **State aid vs public procurement**: Public procurement rules govern *how* the authority buys; state aid rules govern *whether* the support is market-compliant. Both may apply.
