DOCUMENT

NO.: CMSI-
PPP-13-01

REVISION
NO.: REV. 0
DOCUMENT TITLE:

PROJECT PURCHASING
PROCEDURE

COMPANY LOGO

EFFECTIVE
DATE: SEPT.
2013
PAGE NO.

:

Rev. No. Page No. Revision History Originator Date

Revision 0

1 of 6 Pages



Initial Release (Sample Only original
document is under processing by
Department concerned)

Almario J. Sagun

Dec. 04, 2013

SIGNATURE DATE
PREPARED BY:
ALMARIO J. SAGUN
Pre-Execution Manager

CHECKED BY:
ADRIAN M. MANLUNAS
Project Implementation & Con

REVIEWED BY:
RESTY B. DE CASTRO
Project Engineering & Construction Manager

APPROVED BY:
ENGR. CARLO M. MERCADO
President and General Manager

DOCUMENT
NO.: CMSI-
PPP-13-01

REVISION
NO.: REV. 0
DOCUMENT TITLE:

PROJECT PURCHASING
PROCEDURE

COMPANY LOGO

EFFECTIVE
DATE: SEPT.
2013
PAGE NO.

:

1.0 PURPOSE

1.1 This procedure describes the activities performed by M4 Construction &
Maintenance Services, Inc. to ensure that the client-supplied materials
and/or supplied by the company meets the project specifications, specific
instruction from clients are met regarding materials traceability, and that the
project materials are specifically used on the project and well monitored for
the specific purpose.

2.0 SCOPE

2.1 The procedure shall be followed for all the materials, equipment, project
consumables and tools, which are directly used on the project.
2.2 Indirect materials, like scaffolding materials, etc. may be covered under this
procedure when required.

3.0 REFERENCES

3.1 ISO 9001:2008 Clause 7.4.1 Purchasing Process
3.2 M4 Procedure M4CMSI-PUR-13-01 Receiving Inspection and Testing
3.3 M4 Procedure M4CMSI-PUR-13-001 Handling, Storage, Preservation,
Packaging and Delivery

4.0 RESPONSIBILITIES

4.1 M4CMSIs General Manager or in his absence the Assistant General
Manager or the Operation Manager is responsible for authorizing the
purchase of all project materials
4.2 The Purchasing Manager is responsible to control all purchase activities and
the correctness of the purchasing process. .
4.3 The Purchasing Manager is responsible to organize purchase, perform
necessary negotiation with vendors and suppliers, and issue purchase order
or arrange direct/local purchases.
4.4 The Discipline Engineer or the Project Engineer, whenever required, performs
the verification on the quotations received, for compliance to the requirements
regarding material specification, codes and standards used, quantity surveys
or BOM/BOQ, and the equipment requirements.

5.0 PROCEDURE

5.1 SELECTION OF VENDORS / SUBCONTRACTORS/ SUPPLIERS
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.
5.1.2 In case of requirements for new vendors and subcontractors, they
shall be assessed and qualified
DOCUMENT
NO.: CMSI-
PPP-13-01

REVISION
NO.: REV. 0
DOCUMENT TITLE:

PROJECT PURCHASING
PROCEDURE

COMPANY LOGO

EFFECTIVE
DATE: SEPT.
2013
PAGE NO.

:

5.1.3 The assessment and qualification of the vendors shall be performed
by the Purchasing Department in coordination with the QA/QC
Department
5.1.4 Assessment shall include the documented quality system and its
implementation.
5.1.5 The assessment made by Purchasing Department shall be recorded
on Vendor Assessment Report (Forms: M4CMSI-PUR-VAR-13-
004).
5.1.6 Records of all assessment shall be maintained by the Purchasing
Department.
5.1.7 Vendors/Subcontractors/Suppliers shall also be monitored for quality
in conformance with the specification requirement to be inspected by
the QA/QC Department representative and purchasing Department
Representative.
5.1.8 Whenever required, quality audit shall be performed at
Vendors/Subcontractors/Suppliers vicinity. The QA/QC Department is
responsible for the quality inspection as per Inspection and Test Plan
requirement.
5.1.9 A Quarantine Note Log shall be maintained for all Non-
Conformances/rejections on materials and equipment and the status
shall also be used for assessment of the vendors performance

5.2 MATERIALS PURCHASE REQUISITION

5.2.1 THE Discipline Engineer/Project Engineer shall identify the
requirements of materials and equipment, from the project drawings,
Construction specifications and prepare a Materials Request Form
(Form: M4CMSI-PUR-MRF-13-001).
5.2.2 If the items come under store stock, the MRF shall be forwarded to
Store/Warehouse Supervisor who performs the necessary verification
and then send to procurement department. Otherwise, the MRF shall
be directly sent to the Purchasing Department.
5.2.3 MRF is also originated by Store/Warehouse Supervisor for materials
under his stock.

5.3 PURCHASE AUTHORIZATION

5.3.1 On receipt of MRF, the procurement department shall prepare
necessary Purchase Authorization / Materials Request Form
(Form: M4CMSI-PUR-PA-13-001) (Revision 0 is not attached) for
approval by the president.
5.3.2 For materials that are locally Purchased, Store Supervisor shall
perform direct purchase based on the information on the MRF.
5.3.3 For materials purchased through Purchase Orders a Request for
Quotation (M4CMSI-PUR-RFQ-13-001) shall be sent to the Vendors /
Suppliers / Subcontractors enumerated all the required specifications.
.
DOCUMENT
NO.: CMSI-
PPP-13-01

REVISION
NO.: REV. 0
DOCUMENT TITLE:

PROJECT PURCHASING
PROCEDURE

COMPANY LOGO

EFFECTIVE
DATE: SEPT.
2013
PAGE NO.

:

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
denoting the Abstract of Canvass (M4CMSI-PUR-TES-13-001) 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. The Discipline Engineer under the supervision
/ administration of the Operation Manager (Projects) is responsible for
checking and approval of the technical conformance upon
coordination with the General Manager.
5.4.4 Commercially and technically acceptable offer shall be selected for
further processing. The General Manager has the final approval after
his technical recommendation to the Operation Manager (Projects).

5.5 PURCHASE ORDERS

5.5.1 Based on the purchase approval from the General Manager, the
Purchasing Manager shall issue necessary purchase orders through
her Purchasing Engineer designated (Form: M4CMSI-PUR-PO-13-
003).
5.5.2 Purchase Orders shall be complete in all respect and should contain
the complete purchasing data as agreed upon.
5.5.3 Purchasing data shall be either in the Purchase Order or attached in a
separate sheet.
5.5.4 If source inspection is required by M4Construction and Maintenance
Services, Inc. and/or Client an inspection assignment package shall
be also attached with the Purchase order.

5.6 EXPEDITING

5.6.1 The Purchasing department shall follow up with the supplier for the
timely delivery of the materials / equipment. Monitoring shall be done
on a time constrained manner.

6.0 QUALITY FORMS AND RECORDS

6.1 Form: M4CMSI-PUR-MRF-13-001 - Materials Purchase Request
6.2 Form: M4CMSI-PUR-PA-13-002 - Purchase Authorization
6.3 Form: M4CMSI-PUR-PO-13-003 - Purchase Order
6.4 Form: M4CMSI-PUR-VAR-13-004 - Vendor Assessment Report
6.5 Form: M4CMSI-PUR-TES-13-001 - Tender Evaluation Sheet