Project Execution – Project Procurement Management and Purchasing Process, The Procurement Manager in collaboration with the Project Manager (PM) and in coordination with the Corporate Quality Department Manager (QDM) will optimize purchasing during the project, establishing rules that guarantee that the products and services purchased to meet the contract requirements of the project, taking into consideration the quality, schedule, price and overall best value. The Procurement Manager will report to the Project Manager, will be responsible to produce, maintain, and enforce the procurement policy.
To ensure that the project requirements are met, materials shall comply with the project specifications and shall be delivered according to the planned schedules. Thus, Materials and Services will be purchased/awarded only from the suppliers/subcontractors who are able to demonstrate the capability to meet the requirements of the projects. Such materials and services will only be purchased/awarded to the Approved Vendors/Subcontractors of Contractor which has been assessed and approved by the Contractor’s Procurement Department and in addition, approved by the Employer/PMT. Purchase Orders shall be prepared upon the approval of the material from the PMT. (Project Procurement Management and Purchasing Process)
To ensure the quality of the material/services, the following methods of purchasing will be monitored:
- Supplier / Subcontractor Approval – Mainly, the supplier/subcontractor will be taken from the Approved Suppliers / Subcontractors’ List of Contractors. In case there is a new potential supplier/subcontractor, then it will be assessed according to the Procurement Procedure prior to being added on the list.
- Technical evaluation and approval of materials – Prior to submission to the Employer / PMT for approval, materials should be technically evaluated and passed as per the project requirement. (Project Procurement Management and Purchasing Process)
- Delivery – Suppliers / Subcontractors will be assessed according to their capability to deliver the material/product on time without taking the quality at stake.
- PMT Approval – Acquiring necessary approvals of the material and supplier/subcontractor from the Employer / PMT.
- Company Access – Company will be given the right to access to all purchase order inspection report files. Moreover, the Contractor will stipulate in the Purchase Order as one of the Terms & Conditions, “Employer / PMT has the right to access the manufacturers’ facilities and suborder locations”.
In addition, all materials that will be delivered on-site shall be subjected to quality procedures such as Material Testing, Material Scheduling, Material Receipt, and Control, Non-Conforming Material, Handling and Storage and Stock Records.
A report on a monthly basis, or as required by the PMT, will be furnished to show the Procurement Status. The report will contain the material approval status, purchase requisition status, and purchase order status. The report will also trace the procurement of all materials, tools, and equipment including schedule, forecast, and actual procurement milestone dates, and specifically identify all long-lead items.
Purchase Information
In accordance with Materials Management of PEI, purchase orders with the vendors and sub-contractor shall be defined services and/or product requirements. All requisitions shall be reviewed by the Contractor for technical and quality requirements prior to submitting to the Employer for review. (Project Procurement Management and Purchasing Process)
The Purchase Order shall include the following information:
- Job name and project location
- Submittal Reference
- Purchase order number
- Delivery terms and option thereon if applicable
- Agreed delivery date
- Description of the purchased material, equipment, and applicable codes
- Units of measure
- Estimated weight and volume
- Quantity
- Request for design calculation, data & drawings, & date documents are required
- Option clause for 16 weeks (4 months) for placement of an order for spare parts
- Documents and shipping instructions
- Inspection
- Test & Calibration Certificate requirements (if any)
- Name, telephone number, and e-mail address of Vendor contact
- Name, telephone number, and e-mail address of Vendor local sales and service agent
The Quality documents, if any, shall be requested from the suppliers and be specified on the PO:
- Quality Plan
- ITP’s
- Delivery Schedule
The following will be attached in the Purchased Order, if necessary:
- Specifications and drawings
- Contractual Requirements
Order to the subcontractor shall attach the following information:
- Contractual requirements
- Scope of work – Work Breakdown Structure
- Specifications and Drawings
- Schedule
- Description of resources needed
- Quality requirements
The Employer requirements on Procurement and Purchasing in terms of timely deliveries will comply with critical milestones on the procurement of long-lead items and necessary follow up will be done to meet the milestone deadlines. (Project Procurement Management and Purchasing Process(
Verification of Purchased Product
All major equipment manufacturers shall be required to submit evidence of a quality assurance program satisfactory to the Contractor and the Employer. Such a Quality Assurance program shall be in accordance with the Employer requirements, reviewed, and approved by the Employer / PMT. All major material equipment for the project shall be procured from the company qualified and approved by the Contractor and the Employer.
Detailed Inspection & Test Plans
Detailed Inspection & Test Plans for all equipment and material shall be prepared by suppliers and submitted to the Employer with the inspection assignment package, 3 weeks prior to the start of fabrication.
Non-conforming material shall be returned to the originator or marked in a manner that shall stop its use. (Project Procurement Management and Purchasing Process)
A list of materials that are required to be inspected at the Manufacturer / Vendor premises as per approved ITP will be maintained. The inspection requirements will be notified to the manufacturer/supplier during the initial order. Manufacturers/suppliers are instructed to inform well in advance of such inspection. The contractor shall submit each week a two-week look-a-head schedule of all planned vendor inspections electronically in a format acceptable by the Employer / PMT.
Records of supplier inspections shall be prepared following each inspection or weekly for resident inspectors and submitted to the PMT. The inspection disposition report shall be prepared within two weeks following release to ship material and submitted to the PMT.
Control of Procured / Purchased Product
Material Control Procedure
All procured/purchased materials will be handled in compliance with “Material Control Procedure”. Each material will be inspected, properly identified, and stored as per manufacturer recommendations. All materials with limited material shelf-life shall be arranged and have the expiry date recorded at the time of receipt. Where appropriate, the First IN – First Out (FIFO) principle will be used for the issue.
Material placed in an outside shall not be kept directly on sand but should be kept on sleepers or pallets to avoid soil contamination. Materials such as reinforcing bars and metallic pipes, waterproofing materials, cable tiles, and galvanized items will be covered by polyethylene sheets to protect such materials from dampness, corrosion, and weather/elements. (Project Procurement Management and Purchasing Process)
Most of the construction materials are identifiable by means of labels and packaging by the vendor/supplier. Also, materials will be properly identified by using colored markers or tags. The vendor/supplier will be consulted for storage arrangements requiring special conditions of temperature and environment.
Inflammable materials are stored in well-ventilated areas, with suitable segregation of areas for different kinds of materials such as Oil, Diesel, Gas cylinders, etc. are kept in separate areas.
