OLAN DEEMS

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The purpose of this procurement flow and procedure is to provide standard guideline on the purchasing of Materials for the Project. This procedure covers the process of requisition slip for purchase of materials for the Project from the time of receipt of requisition slip for materials through the point of delivery to warehouse.<br />
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<b><span style="font-size: x-large;">D</span>EFINITION </b></div>
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<ul>
<li>CPD -  Central Purchasing Department</li>
<li>CWD - Central Warehouse Department</li>
<li>PR – Purchase Requisition or Requisition Slip (RS). A standard form used to requisition materials    and / or service)</li>
<li>PTS – Purchasing Tracking Systems (Oracle based Central Purchasing System)</li>
<li>MPS – Material Purchasing System (Oracle based Central Purchasing System)</li>
<li>PO - Purchase  Order. A contractual and binding agreement entered between Central Purchasing Office (CPO) and Suppliers for Supply of materials and / or services.</li>
<li>MRR - Material Receiving Report. Document generated by Warehouse Section for the evidence receipt of materials and / services from Suppliers in conformance to purchase orders issued by CPO.</li>
<li>OSDR - Over, Short & Damage Receiving Report. Document raised by Warehouse Department to report discrepancies such as excess quantity / shortage or damage in the materials supplied by the suppliers.</li>
<li>NCR - Non-Conformance Report. Document used to notify discrepancies / non-conformities in the materials</li>
<li>RFQ – Request for Quotation. A standard form used to obtain quotation from suppliers.</li>
<li>PES – Price Evaluation Sheet (or BES – Bid Evaluation Summary). A standard form used for price comparison and selection of suppliers in order to proceed for the placement of purchase order.</li>
<li>PO rev ## – Purchase Order Amendment, Revision or Cancellation. A standard form for any changes required to be done after placing the Purchase Prder (PO)</li>
</ul>
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<b><span style="font-size: x-large;">R</span>ESPONSIBILITIES</b></div>
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<b>ASSITANT PURCHASING MANAGER (APM) </b></div>
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[Reporting directly to the Purchasing Manager]</div>
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<ol>
<li>Review Requisition Slip (RS) received from requestor (normally from Construction Department) and assign to concerned buyers</li>
<li>Negotiations with the suppliers for better deals</li>
<li>Monitor, control and measure purchasing activities</li>
<li>Provide necessary support & guidance to concerned staff and optimize staff</li>
<li>Productivity & Creativity to ensure that purchasing activity are carried out in an effective, efficient and systematic manner</li>
<li>Review and sign Purchase Evaluation Sheets (PES) or Bid Evaluation Summary (BES) & Purchase Orders</li>
<li>Review of Monthly Purchase Order Report & Monthly Outstanding P.O. Report</li>
<li>Works on Cost Request for Project Bidding, any</li>
</ol>
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<b>PROJECT COORDINATOR (PC)</b></div>
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[Reporting directly to the APM]</div>
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<ol>
<li>Review purchase requisitions or requisition slip and assign to buyers</li>
<li>Check quotations submitted by suppliers and negotiate with them for competitive pricing and faster delivery</li>
<li>Supervise, direct & guide buyers / staff under his charge; monitor & control their activities and ensure that procurement is carried out in a most transparent, competitive and efficient manner</li>
<li>Close coordination with Project Management Team, Project Controls Department, buyers & suppliers; plan the procurement and achieve delivery of goods in an efficient way to meet with the project budget and schedule</li>
<li>Proper, constant and effective communication with all concerned parties to avoid confusion and pre-empt stoppage of work due to unforeseen delay in the delivery of goods</li>
<li>Review Materials Status Reports.</li>
</ol>
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<b>BUYER / ASSISTANT BUYER</b></div>
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[Reporting directly to the APM / PC]</div>
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<ol>
<li>To ensure that purchase requisition assigned to him are attended to soonest</li>
<li>If the requisition is for permanent materials, retrieve all quotations that suppliers submitted at the bid stage, short-list them in terms of competitiveness and call the suppliers for further negotiations</li>
<li>If the materials description and / or specification stated on Requisition Slip are inaccurate / incomplete / incorrect, or the require delivery date is not achievable, then bring the same to the attention of Project Management in writing</li>
<li>To obtain as much quotation as possible for price comparison</li>
<li>To conduct periodical market surveys and to establish business relation with direct or original sources</li>
<li>To ensure that suppliers that he deal with are listed in Approval Vendor List</li>
<li>When necessary, to transmit along with technical data for review by the end-user</li>
<li>To complete commercial evaluation of quotations and preparation of Purchase Orders</li>
<li>To monitor Purchase Orders and expedite delivery the stipulated delivery schedule</li>
<li>To keep the end-users updated on the status of their materials</li>
<li>To arrange materials inspection at Supplier’s premises as and when specified in the Purchase Order</li>
<li>To arrange for return of rejects materials to the supplier and to arrange replacement or re-order</li>
<li>To highlight any deficiencies observed in the operating procedure for improvement </li>
<li>Update Materials Status Report and highlight any changes in the delivery schedules; and recommend feasible alternatives should such changes pose substantial impact on the project schedules</li>
<li>Resolve discrepancies in the delivered materials / goods and claim damages from the    concerned parties for any loss or damage caused</li>
</ol>
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<b>DATA ENTRY OPERATOR / CLERK</b></div>
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[Reporting to the Senior Purchasing Officer]</div>
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<ol>
<li>To receive and distribute all incoming and outgoing correspondences and maintain files</li>
<li>To ensure the Requisition Slip into the Computer System</li>
<li>To assist in the preparation of purchase orders</li>
<li>To update approval status of all Purchase Orders in the system</li>
<li>To transmit purchase orders copies to the concerned departments</li>
<li>To file and maintain Purchase Orders and supporting documents</li>
<li>To prepare Monthly Report and Material Status Report</li>
<li>To perform typing work as required.</li>
</ol>
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<b><span style="font-size: x-large;">P</span>ROCEDURE</b></div>
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<b>1. REQUISITION SLIP (RS) or PURCHASE REQUISTION (PR)</b></div>
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<ol>
<li>Requisition slip duly approved by Project Manager is received by buyer stationed at project site. He will retain a copy of RS and forwarded the original to CWD / CPO (HQ, if any) for recording data in to the computer system.</li>
<li>If buyer is not stationed at project site, RS routed to CPO (HQ, if any) through CWD.</li>
<li>Upon receipt at CPO (HQ, if any), RS will be reviewed and assigned to buyer.</li>
<li>Carbon copy of RS is passed on to Data Entry Operator and original copy to buyer.</li>
<li>Data Entry Operator enters RS data into computer system.  </li>
</ol>
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<b>2. REQUESTED FOR QUOTATION (RFQ)</b></div>
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<li>Upon receipt of RS, buyer will complete RFQ form and sent out inquiries.</li>
<li>RFQ number recorded in the RFQ log book, one reference number per inquiry is used even if the inquiry is sent to multiple suppliers.</li>
<li>Site buyers will maintain separate RFQ log.</li>
<li>For overseas inquiries, RFQ form not issued, however all relevant information / clauses are clearly states in the inquiry.</li>
<li>Supplier information obtained from Vendor List.</li>
<li>As a standard norm, at least three (3) suppliers are requested to give quotation per requirement. However, this condition is relaxed in cases of transaction with Manufacturer, Sole Agents, and Authorized Distributors of specific products, and also in cases of emergency purchases.</li>
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<b>3.<span class="Apple-tab-span" style="white-space: pre;"> </span>PRICE EVALUATION SHEET (PES) or BID EVALUATION SUMMARY (BES)</b><br />
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<ol>
<li>Buyer checks quotation (s)received from suppliers</li>
<li>Buyer ensures that quotations and technical data are transmitted to end-user if and when required, for technical evaluation / client approval</li>
<li>Suppliers called for discussion and negotiations</li>
<li>Buyer completes Price Evaluation Sheet and put up for approval</li>
<li>If the buyer is stationed at site, concerned Project Manager or Project in-charge will check and sign PES at CPO (HQ, if any). APM will check and sign PES.</li>
<li>PES is then sent for approval by VP or his nominee.</li>
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<b>4. PURCHASE ORDER (PO)</b></div>
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<li>PES upon approval is handed to Date Entry Operator</li>
<li>Data Entry Operator prepared and prints PO in the standard format</li>
<li>Buyer check and sign PO</li>
<li>APM reviews sign and puts up PO for approval of Purchasing Manager and Vice President</li>
<li>After approval, Document distributes PO copies to concerned parties</li>
<li>Where advance payment is required, advance payment request is completed and forwarded to CPO Accounts for Process.</li>
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<b>5. EXPEDITING              </b></div>
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<li>Buyer constantly contacts supplier and ensure that orders are delivered on time</li>
<li>CPO Shipping Section is responsible for expediting of orders placed to overseas suppliers</li>
<li>Changes in delivery schedule(s), if any are reported to the end user</li>
<li>Site Project Controls Department is provided with necessary input on status of Purchase Orders, so as to complete the Materials Status Report</li>
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<b>6. PO AMENDMENT / PO CANCELLATION</b></div>
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<li>Upon receipt of PO, if any or all items originally offered ex-stock, went out of stock, concerned supplier is to notify buyer. Buyer shall discuss with end user and decide whether or not to amend or cancel the PO and re-order</li>
<li>If any typo error either in the supplier quotation or PO is subsequently noticed, either in the description / specification, quantity, unit price, total amount, delivery time, currency and / or terms & condition, the same must be brought to the attention of buyer. Buyer shall then check and issue PO Amendment to reflect changes as required</li>
<li>If supplier is unable to fulfill delivery of order for any specific reasons beyond, control, the same must be notified to buyer. Buyer will issue PO Cancellation</li>
<li>If delivered products are rejected by end-user / warehouse due to non-conformity, buyer shall action to return such items for replacement or re-order. PO Amendment or PO cancellation is to be issued in such cases</li>
<li>To issue PO Amendment / PO cancellation, buyer complete draft PO Amendment / Cancellation form and have it approval by the concerned signatories</li>
<li>Data Entry edits records in the computer system and prepares PO Amendment / Cancellation</li>
<li>PO Amendment will bear original PO number with suffix ‘rev 01’ or ‘rev 02’ to denote the number of amendments issued</li>
<li>PO Cancellation will bear original PO number suffix ‘rev 0#’ or simply marked with the word “CANCELLED” on the original PO</li>
<li>PO Amendment / Cancellation will be approved by Purchasing Manager, Project Manager and Project Director.</li>
<li>Document Controller distributes PO Amendment / Cancellation to all concerned parties</li>
<li>Please refer to attached Map Flow to show the sequence of procedure for the Purchase of Permanent Materials by Site Buyer.</li>
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<b>7. INSPECTION</b></div>
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<li> If inspection is required at supplier’s facility, buyer shall complete request for inspection and schedules the inspection in coordinate with the Inspector and supplier. Inspection Report in the file</li>
<li>In case pre-shipment inspection is to be conducted at foreign supplier’s facility, buyer will coordinate with client, Supplier and Third-party Inspection Agency as appointed by client</li>
<li>Item that pass inspection only will be accepted</li>
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<b>8. SHIPPING & CUSTOM CLEARANCE OF IMPORTED MATERIALS</b></div>
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<li>Upon receipt of shipping advice, shipping section shall cover Marine Cargo Insurance (not necessary for CIP / CIF terms)</li>
<li>Coordinate with Shipping Line / Agents or Freight Forwarder or Cargo handling Authority at Airport and ascertain time of cargo arrival</li>
<li>Follow up with suppler or Freight Forwarder for submission of shipping documents</li>
<li>Verify shipping documents</li>
<li>Forward the documents to Customs Broker</li>
<li>Monitor and expedite clearance of shipments from customs</li>
<li>Customs or Bank Guarantee is arranged in case original shipping documents are not available at the time of customs clearance</li>
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Project Procurement Procedure for Construction

The purpose of this procurement flow and procedure is to provide standard guideline on the purchasing of Materials for the Project. This pr...

Project Procurement Procedure for Construction

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