Purchasing Control & Supplier Evaluation

QP-07

Purchasing Control & Supplier Evaluation

Prepared by Approved by
DMR MR
SIG. SIG.

Remarks:

 Use this document only, if it is stamped with the Red One (Controlled
Copy Stamp).
 No part of this procedure may be reproduced in any form by print,
photocopy, microfilm or any other means wholly or partially, or disclosed to
any person outside SITE TECHNOLOGY LTD. CO. without a written
permission.
 This Document is authorized by the CAO/MR, and any change thereof can
only be made with his approval.

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1.0 PURPOSE:

1.1 To Determine the method of purchasing materials or services, which may have
an impact on the final quality of SITE TECHNOLOGY LTD. CO. projects.

1.2 Ensure that suppliers / subcontractors have demonstrated capability to provide

supplies which consistently meet the requirements of purchase order and
monitoring of suppliers and subcontractors’ performance.

2.0 SCOPE:

2.1 This procedure applies to all the materials and services purchased by SITE
TECHNOLOGY LTD. CO. which have an impact on the quality of the
projects/ services provided.

3.0 RESPONSIBILITIES:

3.1 The General Manager (GM).

3.2 The Project Engineer (PE).
3.3 The Accountant / Management Accountant(AC).

4.0 PROCEDURE:

4.1 Approving & Evaluating of Suppliers and Sub-contractors:

A-Approving of Suppliers & Subcontractors:

4.1.1 The requirement for a new / additional supplier, subcontractors shall be initiated
on the basis of:
A request from the concerned departmental heads/ clients
Number of current suppliers/ sub-contractors insufficient.
 More price competitive / more reliable suppliers / sub-contractors required.
Quality problems with current suppliers / sub-contractors.

4.2 Upon the requirement for a new supplier / sub-contractor(s) for a specific
part /material being established, the Project Engineer shall identify probable
suppliers/ sub-contractors based on one or more of the following:
 Recommendation from departments/ client.
 Suppliers / sub-contractors who are seeking business with the company.
 Existing suppliers / sub-contractors having business for other parts / materials.

4.3 Suppliers / sub-contractors are approved based on their ability to meet the
specified requirements, past performance and their terms of payments.

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4.4 The General Manager in accordance with the Project Engineer approves and
updates the suppliers / sub-contractors on the approved suppliers list.

4.5 Materials / Services shall only be purchased from suppliers / sub-contractors

who are listed in the approved suppliers / sub-contractors list.

B- Evaluation of Suppliers / Subcontractor:

4.6 The suppliers / subcontractors shall be evaluated, monitored periodically

through the following:
4.6.1 The General Manager / Project Engineer shall inspect and follow up the
receiving material from suppliers and may record the result and his
evaluation in the monthly project progress report, if required.

4.6.2 The General Manager / Project Engineer concerned shall monitor the
performance of sub-contractors to ensure that the work to be carried out
corresponds with the detailed work program and the tender / contract
requirements according to the requirements of procedure Inspection &
Testing.

4.6.3 The Project Engineer shall evaluate suppliers / sub-contractors performance

every tweleve months(suppliers evaluation report) and there performance
also to be discussed during management review meeting.

4.6.4 Note that only those suppliers will be evaluated whom supplies price is
equals to or more than 100,000 Dhhs.

4.7 Purchase of Materials / Products :

4.7.1 The General Manager / Project Engineer / individual department heads shall
prepare a requisition for quotations for the materials / products based on the
contract / site requirements.

4.7.2 The requisition shall be checked for the quantity against the bill of quantities
or contract drawings and approved by the General Manager.

4.7.3 The General Manager / Project Engineer shall initiate the procurement
activities by sending inquiries to the approved suppliers as per the Approved
Suppliers List.

4.7.4 The Project Engineer shall provide the supplier with the relevant details
regarding:
- Description / Specifications of the items
- Quantity required
- Other specific details, if any

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4.7.5 Upon receipt of quotations from suppliers against the Purchase Inquiry, the
Project Engineer compares among them and selects the best offer and
sends to the selected supplier a letter of intent to process its submittal based
on the approval of the General Manager.

4.7.6 The Suppliers and Sub-contractors shall be provided with adequate

specifications, documents and drawings related to the project.

4.7.7 After Client / Consultant approval of selected items, the Project Engineer
sends the submittal approval and the confirmation order to the supplier, who
sends a Performa Invoice accordingly.

4.7.8 The General Manager checks the Performa Invoice and sends it to the
accountant for proceeding of the Letter of Credit (LC) or the Post Date
Check (PDC).

4.8 Issue of purchase / confirmation order:

4.8.1 The General Manager / Project Engineer shall prepare the purchase order
which contains the following details:
- LPO / confirmation order number and date of preparation
- Supplier’s details (contact person, address, Tel, fax)
- Quantity ordered and specifications.
- Unit rate and agreed price

4.8.2 The (LPO) / confirmation order shall be reviewed and signed by the CAO/GM
and sent to the supplier.

4.8.3 After issue of order, General Manager / Project Engineer shall coordinate with
the supplier for timely delivery of product / material.

4.8.4 Upon delivery, the purchased materials / items shall be inspected for quality,
quantity and damage if any, according to Inspection and Testing procedure
and only conformed purchased material shall be accepted, and the delivery
note shall be signed accordingly.

5.0 REFERENCE DOCUMENT & RECORDS:

5.1 Ispection and Testing Procedure QPN9

5.2 Approved Suppliers List ----------
5.3 Local Purchase Order ----------
5.4 Quotation Request Messa ----------
5.5 Order Confirmation Message ----------
5.6 Material Submittal Approval ----------
5.7 Suppliers’ Performance Report QPN7f1

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