BETONIQ QUALITY SYSTEM
Wi08 Budget Management and Contracts
Here you find the work instructions to manage Budgets and setup Contracts (todo)
The usual purchase process is as follows;
If anything is required a senior supervisor or engineer is informed by personnel.
Projects or production have a material request book. This is filled in and submitted to head of department for approval then forwarded to the Purchase department for further action.
All Field Purchases, except Petty Cash Purchases, must be supported by a Purchase Order issued and distributed prior to receipt of the goods or invoice. Prices must be obtained prior to placing the order, but in rare cases where circumstances dictate, and it is not possible to obtain a price prior to placing an order, the Purchase Order may still be issued and an estimated cost (inserted as a blind note) is to be shown for all items. This cost must be plainly shown to be an estimate and must be corrected by an Amendment to the Purchase Order immediately upon receipt of firm prices. These firm prices must be obtained as early as possible and the Amendment issued without delay. Purchase of materials must be by competitive bids, whenever possible.
No purchases whatsoever will be made without an approved Requisition. A Requisition for Purchase can be initiated by anny employe personnel, using form AA-BB-11 form. This requisition will be submitted to a senior supervisor or engineer. Every Requisition for Purchase will show the following: Date of Requisition. Clear description of the required items. To be used for (area, line no., isometric no., etc.). A realistic required delivery date and not always "ASAP" or "RUSH". The name (in printed letters) and signature of the originator. After proper coding by the Engineer, a copy of the requisition will be listed in an Engineering Requisition Register. The original will be passed on to the Field Buyer. Under no circumstances will the Field Buyer accept VERBAL purchase request. 3. Request for Purchase Register On receipt of a requisition for purchase, the Field Buyer will enter the request in a REQUEST REGISTER allocating a sequence number for each requisition. The register will show: Date of Requisition Requisition Number Originator of Request Brief Description Cost Code Purchase Order Number 4. Bids Bids will be requested from at least three competitive vendors whenever possible unless otherwise noted in the "Construction Coordination Procedure". After receipt of the bids, the Field Buyer will complete the Bid Comparison (form AA-BB-11) and submit it for approval to the a senior supervisor or engineer or his authorized delegate (and on reimbursable projects to the Client). 5. Completion and Distribution of Requisitions After the material is ordered, the Field Buyer will markup the original requisition with: Order Date. P.O. Number. Selected Personnel. Promised Delivery Date. He will then send a copy of this marked-up requisition to: The Originator of the Requisition. The Material Supervisor. The Site Engineer. Others as per "Document Distribution Schedule". The original requisition is to remain in the Buyer's Purchase Order file. 6. Field Purchase Order Field Purchase Orders will be initiated only by approved Requisitions. The Field Purchase Order, signed by the Buyer on behalf of Company or the Client, will be issued immediately. Distribution of Field Purchase Orders will be as follows: Original and confirmation copy to BETONIQ. Field Accounting (with copy of requisition). Field Buyer. Site Engineer. Others as per "Document Distribution Schedule". Each Purchase Order must clearly show: Purchase Order Number. Requisition Number. Cost Code. Quantity. Unit Description. Unit Price. Total Price. Discounts. Taxes. Promised Delivery Date. Payment Conditions, when these differ from those stated at the reverse side of the Purchase Order or Amendment. Contact Person at BETONIQ. 7. Unit Price Order Unit Price Orders are commonly issued to cover Bulk Purchases, such as welding rods, cement etc., services, rentals, etc. Many factors influence the usage of Unit Price Orders, such as delivery requirements, and they greatly reduce the number of Field Purchase Orders, resulting in reduced field office clerical costs. Great care shall be exercised in the selection of suppliers and the initial order shall state in language that cannot be misunderstood, that the order may be terminated at the discretion of the Purchaser without penalty. Materials/Services should be delivered as and when required, (to be indicated by the Field Buyer). For each delivery the necessary Material Receiving Notice must be completed and delivery notes signed for BETONIQ’s records to substantiate his invoice. The original Unit Price Order is a Committing Document and therefore must contain price estimates. As soon as it becomes evident that actual expenditures will exceed the original estimate a revision to the requisition is issued with the revised estimated amount for approval by the Project Construction Manager and Project Manager if applicable. After approval, an amendment is prepared and issued for "internal purposes only" indicating the new amount. A final amendment should be issued at job-end in order to equate actual expenditures with commitments. Unit Price Orders require special attention and control, since an order may cover a long period of time and may generate many receiving reports, invoices and other documents. Unit Price Orders must show time conditions during which unit prices are valid. In case of a price change, or after a long period, new comparison with other vendors should be considered. 8. Purchase Order Register A Purchase Order number in sequence is given for each BETONIQ department. The Buyer records the Purchase Order number on a Purchase Order Register. This register shows the date, requisition number, vendor, description of material ordered, and amount (excluding TAX). The Purchase Order Number is also entered in the Requisition Register next to the respective request number to ensure that all requests have been handled. If a request for Purchase has to be split up between several departments, the request will have one number and the various Purchase Order numbers will be listed against this request. 9. BETONIQ Register The Field Buyer will maintain a card system or an alphabetical register indicating names of BETONIQ departments, description of material ordered and Purchase Order number. This applies to Purchase Orders as well as Field Purchase Orders. This register helps to locate Purchase Orders if only the department name is known. 10. Petty Cash Purchases Petty Cash Purchases are generally employed for one or more of the following reasons: The purchase is for material or service which is low-cost and not covered by a blanket order. The cost of issuing a formal Purchase Order is not justified, in relation to the value of the Purchase. (The limit of this justification will be given in the "Construction Coordination Procedure"). The normal cycle would cause a serious delay. For a Petty Cash Purchase, the Field Buyer will hand the approved Purchase Requisition to Job Accounting with a note "To be purchased from Petty Cash Funds", by which he is authorized to make the Petty Cash Purchase. Each Petty Cash Purchase/Expenditure is supported by a "paid" receipt or signed Field petty cash voucher. The voucher is filled out in detail including the Account Code(s) affected by the transaction.