HomeGlossaryContracts

Contracts

Plain-language definitions of every Contracts term that shows up in government tender work.


Contracts

Admeasurement Contract

A works contract where payment is based on the measured quantities of work actually completed at tendered unit rates, common in civil engineering under FIDIC and Commonwealth procurement traditions.

Read definition
Contracts

Bid Security

A guarantee a bidder lodges with its bid that the buyer can call if the bidder withdraws or refuses to sign, deterring frivolous bids on major contracts.

Read definition
ContractsBOT

Build-Operate-Transfer (BOT)

A project delivery model where a private contractor finances, builds, and operates a public facility for a defined concession period, recovering investment through user fees or availability payments, then transfers the asset to the government.

Read definition
ContractsBOOT

Build-Own-Operate-Transfer (BOOT)

A PPP variant where the private party finances, builds, legally owns, and operates an infrastructure facility during the concession period before transferring ownership back to the public authority at expiry.

Read definition
Contracts

Call-Off Contract

An individual order placed against an existing framework agreement or indefinite quantity contract, activating a specific quantity of goods or services under the pre-agreed terms without a new full tender process.

Read definition
Contracts

Concession Agreement

The master contract between a government and a private concessionaire granting the right to build, operate, and earn revenue from a public infrastructure facility for a defined period before transferring it back to the state.

Read definition
Contracts

Consortium Agreement

A contract among multiple independent companies that have agreed to bid and work together on a procurement contract, defining each member's scope, responsibilities, and commercial arrangements while each retains its own legal identity.

Read definition
Contracts

Cost-Plus Contract

A contract that reimburses the contractor for all allowable costs incurred and adds a fixed fee or percentage markup, shifting cost risk to the buyer and used when scope cannot be defined before work begins.

Read definition
Contracts

Cost-Reimbursable Contract

A contract in which the buyer reimburses the contractor for all allowable and audited costs of performance, plus an agreed fee, used for complex or uncertain scopes where fixed pricing is not feasible.

Read definition
Contracts

Design-Build Contract

A contract that gives one contractor responsibility for both designing and constructing a facility against the owner's output requirements, eliminating the traditional separation between designer and builder.

Read definition
ContractsEPC

EPC Contract (Engineering, Procurement, Construction)

A contract that places full responsibility for design, equipment procurement, and construction with a single contractor, who delivers a complete facility to the buyer for a fixed lump sum price.

Read definition
ContractsEPC

EPC Contract (Engineering, Procurement, Construction)

A contract that places full responsibility for design, equipment procurement, and construction with a single contractor, who delivers a complete facility to the buyer for a fixed lump sum price.

Read definition
ContractsEPCM

EPCM Contract (Engineering, Procurement, Construction Management)

A contract that engages one firm to design, manage procurement, and supervise construction on behalf of the owner, while the owner holds direct contracts with the construction trades, separating management from execution risk.

Read definition
ContractsEPCM

EPCM Contract (Engineering, Procurement, Construction Management)

A contract that engages one firm to design, manage procurement, and supervise construction on behalf of the owner, while the owner holds direct contracts with the construction trades, separating management from execution risk.

Read definition
Contracts

Fixed-Price Contract

A contract that sets a defined price for a defined scope, with the contractor bearing the risk of cost overruns, covering lump sum, unit price, and firm-fixed-price structures across goods, works, and services.

Read definition
Contracts

Indefinite Quantity Contract

A contract that establishes unit prices and terms for a defined category of goods or services, with no commitment to a minimum order volume, allowing the buyer to place orders as needs arise over the contract period.

Read definition
ContractsJVA

Joint Venture Agreement (JVA)

A contract between two or more companies that defines how they will collaborate to bid on and execute a procurement contract together, including each party's scope share, financial contribution, management responsibilities, and risk allocation.

Read definition
ContractsLTA

Long-Term Agreement (LTA)

A standing agreement that fixes terms and prices with a supplier for repeated purchases over a set period, letting agencies order quickly without re-tendering each time.

Read definition
Contracts

Lump Sum Contract

A contract where the supplier agrees to deliver a defined scope of work for a fixed total price, transferring cost-overrun risk to the contractor while giving the buyer price certainty.

Read definition
ContractsMSA

Master Services Agreement (MSA)

A contract that establishes the governing terms and conditions for an ongoing commercial relationship between a buyer and a supplier, under which individual statements of work or orders are placed without renegotiating the master terms each time.

Read definition
Contracts

Output-Based Contract

A contract that pays the supplier per unit of verified output delivered, such as households connected, vaccinations administered, or tonnes processed, rather than for the activities or inputs used to produce those outputs.

Read definition
Contracts

Performance-Based Contract

A contract that ties payment to the achievement of defined performance outcomes or service standards rather than to inputs delivered, incentivising the contractor to optimise methods to meet targets efficiently.

Read definition
ContractsPPP

Public-Private Partnership (PPP), International

A long-term contract between a government and a private party under which the private party provides a public service or infrastructure facility and assumes significant financial, technical, and operational risk in exchange for revenue or payments over the contract period.

Read definition
ContractsPPP

Public-Private Partnership (PPP), International

A long-term contract between a government and a private party under which the private party provides a public service or infrastructure facility and assumes significant financial, technical, and operational risk in exchange for revenue or payments over the contract period.

Read definition
ContractsSLA

Service Level Agreement (SLA)

A document or contract schedule that defines the measurable performance standards a service provider must meet, specifying metrics, measurement methods, reporting frequencies, and the consequences of underperformance.

Read definition
Contracts

Subcontract Agreement

A contract between a prime contractor and a third party (subcontractor) for the delivery of a defined portion of the prime contract scope, with the prime contractor remaining fully responsible to the buyer for the subcontractor's performance.

Read definition
Contracts

Time-Based Contract

A contract that pays the consultant or service provider for the actual time spent at agreed staff rates plus reimbursable expenses, used when the scope or duration of an assignment cannot be defined precisely in advance.

Read definition
Contracts

Turnkey Contract

A contract in which the contractor delivers a fully completed, operational facility ready for immediate use, taking responsibility for all design, procurement, construction, testing, and commissioning under a single fixed price.

Read definition
Contracts

Unit Price Contract

A contract that pays the contractor a fixed rate for each measurable unit of work actually completed, with the final contract value determined by the quantities measured on site rather than an upfront fixed total.

Read definition

Put Contracts to work

See how Bidovate turns these government tender terms into pipeline. Explore the platform or book a 15-minute demo.