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QP-001

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Page No.

DOCUMENT TITLE

ENGINEERING
PURCHASING
Revision History

Originator

Date

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1.0

PURPOSE
1.1

2.0

2.2

3.3

ISO 9001 2008 Clause 7.4 - Purchasing

CESCO Procedure CES-10-01 - Receiving Inspection and
Testing
CESCO Procedure CES-15-01 Handling,
Storage,
Preservation, Packaging and Delivery

RESPONSIBILITIES
4.1
4.2
4.3
4.4

5.0

The procedure shall be followed for all materials, which are

directly used, on the project.
Indirect materials, like tools, consumables, scaffolding
materials, etc. may not be covered under this procedure.

REFERENCES
3.1
3.2

4.0

This procedure describes the activities performed by CESCO

so as to ensure that the materials meeting the specification
and project requirements are only used in the project.

SCOPE
2.1

3.0

ENGINEERING
PURCHASING

CESCO President or in his absence the Vice President /

Operation Manager is responsible for authorizing the purchase
of all project materials
The General Manager (Procurement) is responsible to control
all purchase activities.
The Procurement Manager is responsible to organized
purchase, perform necessary negotiation with vendors and
supplies and issue purchase order or arrange direct purchase
The Discipline Engineers, wherever required, performed the
verification on the quotation received, for compliance to the
requirements.

PROCEDURE
5.1

SELECTION
SUPPLIERS

OF

VENDORS

SUBCONTRACTORS

5.1.1 Generally, Vendors and/or Subcontractors/Suppliers shall

be selected from the approved vendors list of the client
or the list specified in the Construction Specification.

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5.1.2 In case of requirements for new vendors and

subcontractors, they shall be assessed and qualified
5.1.3 The assessment and qualification of the vendors shall be
performed by the Purchasing Department and/or QA/QC
Department
5.1.4 Assessment shall include the documented quality
system and its implementation.
5.1.5 The assessment made by CESCO shall be recorded on
Vendor Assessment Report (Forms: CES/PR/007 &
CES/PR/008).
5.1.6 Records of all assessment shall be maintained by the
Purchase Department.
5.1.7 Vendors / Subcontractors / Suppliers shall also be
monitored for quality, in conformance with the
specification requirement.
5.1.8 Whenever required, quality audit shall be performed at
Vendors / Subcontractors / Suppliers.
5.1.9 A quarantine note log shall be maintained for all nonconformances / rejections on materials and equipment
and the status shall also be used for assessment of the
vendors performance.
5.2

MATERIAL PURCHASE REQUISITION

5.2.1 The Discipline Engineer / Supervisor shall identify the
requirements of materials and equipment, from the
project drawings, Construction specifications and
prepare a Material Purchase Requisition (MPR) (Form:
CES/PR/001).
5.2.2 If the items come under store stock, the MPR shall be
forwarded to Store/Warehouse Supervisor who performs
the necessary verification and then send to procurement
department. Otherwise, the MPR shall be directly sent to
Purchasing Department.
5.2.3 MPR is also originated by Store/Warehouse Supervisor
for materials under his stock.

5.3

PURCHASE AUTHORISATION
5.3.1 On receipt of MPR, the procurement department shall
prepare necessary Purchase Authorization/Materials
Request Form (Form: MRF/PR/002/01) (Revision 0 is
not attached) for approval by the president.
5.3.2 For materials that are locally purchased, Material
Coordinator shall perform direct purchase based on the
information in the MPR.

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ENGINEERING
PURCHASING

5.3.3 For materials purchased through Purchase Orders a

Request for Quotation shall be sent to the
vendors/Suppliers/Subcontractors.
5.3.4 The request for quotation shall include all the
specification details of the item and the inspection
requirements.
5.4

EVALUATION OF QUOTATIONS
5.4.1 The Purchasing Department shall evaluate the
quotations received, for technical completeness and
commercial aspects.
5.4.2 From the technically competent offer, a Tender
Evaluation Sheet shall be prepared for major equipment
and materials to identify the commercially acceptable
offer.
5.4.3 The quotation shall be submitted to the originator /
designer for technical conformance.
5.4.4 Commercially and technically acceptance offer shall be
selected for further processing.

5.5

PURCHASE ORDERS
5.5.1 Based on the purchase approval from the President, the
Procurement Manager shall issue necessary purchase
orders (Form: CES/PR/003).
5.5.2 Purchase Orders shall be complete in all respect and
should contain the complete purchasing data.
5.5.3 Purchasing data shall either be either in the purchase
order or attached in a separate sheet.
5.5.4 If source inspection is required by MRK and/or client an
inspection assignment package shall also be attached
with the purchase order.

5.6

EXPEDITING
5.6.1 The procurement department shall follow up with the
supplier for the timely delivery of the materials /
equipment.

6.0

QUALITY FORMS AND RECORDS

6.1 Form: CES/PR/001
- Materials Purchase Requisition
6.2 Form: MRF/PR/002/01 - Purchase Authorization
6.3 Form: CES/PR/003
- Purchase Order
6.4 Form: CES/PR/007
- Vendor Assessment Report
6.5 Form: CES/PR/008
- Vendor Assessment Report

DOCUMENT
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ENGINEERING
PURCHASING

SIGNATURE
PREPARED BY:

REVIEWED BY:

APPROVED BY:

DA