Documentation of purchasing activity is a lengthy and hectic process in any organization; the procurement officer needs to start from A and go through Z as per the purchasing policies.
In this article, we’ll describe the most common and easiest procurement plan step by step.
Purchase Requisition Form:
Basically, the purchase requisition form starts the procurement process from the market. The concerned section head and project manager initiate the purchase requisition form and submit it to the procurement department for further processing.
Key parts of the purchase requisition forms are.
Part # 1
Description and list of goods/items needed for
the project.
No of units
Quantity of the goods/items
Estimated unit cost
Estimated total cost
Project/section to be charged
Budget Code
Part # 2
Requestor’s Authorization with special notes
Recommendation of Supervisor
Part # 3
Financial Review/ Check budget availability
Approval from the competent authority
Submit to the procurement department
Request for Quotations:
RFQ Serial Number
RFQ issue date & submission deadline
Issued by (organization name and address)
Issued to (supplier name and address)
Item list as per RRF received from the concerned
section
Evaluation Criteria (Quality of the item with the
lowest price)
Terms of payment (payment will be made as per the rule, and tax will be deducted from the payment)
Important note (quotation will be applicable
for the specific period)
Key requirements (sealed quotation on vendor’s
letterhead, etc.)
Vendor receipt and acknowledgment.
Comparative Statement:
Date of evaluation
Quotations 1,2,3
Lowest quoted price with all service charges
and after-sales service
Warranty period
Evaluation criteria
Maximum score
Recommendation of the evaluation committee
Purchase Order:
Purchase order #
Quotation Reference # and date
Vendor name and address
Delivery time and location
Terms and conditions
Supplier acceptance
Good Received/Inspection Note GRN/GIN:
GRN/GIN #
Purchase order #
Date of Delivery
Invoice #
Supplier name and address
Items, Units, Quantity, Remarks, and
inspection remarks
Goods/Items received by _______________
Goods / Items Verified by ______________
Purchase Order Register:
Purchase order # and Date
Name of Supplier
Delivery Date
Item Description
Quantity ordered, delivered, and balance
Detailed procurement plan:
Disclosure of conflict of interest
Evaluation of expression of interest
Summary of expression of interest
Pre-qualified letter
Not a qualified letter
Invitation to Tender Letter
Tender opening sheet
Technical Evaluation Report
Financial evaluation
Contract approval sheet
The stages of comprehensive procurement procedures and steps are mentioned above.
I hope this information will benefit your procurement plan. However, the terms and conditions in different locations and prices may also vary in terms of procurement quantity.
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THIS AGREEMENT is entered into force after the
signing of both parties
Between
Agriculture Business Corporation,
(Herein referred to as the “Client”)
And
M/s ABC Steel Corporation,
(Herein referred to as the Supplier)
SCOPE
The supply of Steel is the prime
responsibility of the supplier. The detailed specifications of the required
items are mentioned below:
(Table A)
|
S. No |
Particulars |
Unit |
Qty |
|
1 |
Steel Commercial 3/1 inch |
No |
|
|
2 |
Steel Commercial ½ Inch |
No |
The specifications of the above-stated items are fixed and unchanged unless the prior is intimated by the purchaser in writing.
Any items handed over to a nominated representative from ABC, deviating from the specifications mentioned above, will not be accepted, and the supplier will be responsible for changing and bearing all costs, including replacement, transportation, and any other costs if applicable.
MODALITIES:
The performance of the Supplier shall be measured as the Supplier shall ensure the quality of items to be purchased, and an inspection to be done by ABC technical facilitators.
ADDITIONAL SERVICES:
The Client may ask the Supplier to perform Additional Services / Items during the currency of this Agreement. Such Additional Services shall be performed with the prior concurrence of both Parties.
TERMINATION:
The Agreement shall terminate when, under the provisions hereof, the Provision of items on sites has been completed and the payment of remunerations has been made.
TERMINATION BY THE CLIENT:
The Client may, by a written notice of thirty 05 days to the Supplier, terminate this Agreement. All accounts between the Client and the Supplier shall be settled no later than ten 10 days from the date of such termination.
TERMINATION BY THE
SUPPLIER:
The Supplier may suspend the Agreement by a written notice of five (05) days only if the Supplier does not receive payments due under this Agreement within ten (10) days of submission of its invoice.
If the payment is still not made to the Supplier after twenty (20) days of notice of suspension, the Supplier may terminate this Agreement in whole or in part.
If the Agreement is terminated by the Supplier under such circumstances, the Client shall pay, within thirty (30) days of the date of such notice of intent to terminate referred to above, all payments due to the Supplier.
FORCE MAJEURE:
The term "Force Majeure" as employed herein shall mean acts of God, strikes, lock-out, or other industrial disturbances, acts of public enemy, wars, blockades, insurrection, riots, epidemics, landslides, earthquakes, storms, lightning, floods, washouts, civil disturbances, explosions, and any other similar events, not within the control of either Party and which by the exercise of due diligence neither party can overcome.
If either Party is temporarily unable because of Force Majeure or the laws or regulations to meet any of its obligations under the Agreement, and if such Party gives to the other party written notice, of the event within fifteen (15) days after its occurrence, such obligations of the Party, as it is unable to perform because of the event shall be suspended for as long as the inability continues.
Neither Party shall be liable to the other Party for loss or damage sustained by such other Party arising from any event referred to as Force Majeure or delays arising from such events.
Force Majeure shall not include insufficiency of funds or failure to make any payment required under the agreement.
RESOLUTION OF DISPUTES:
Any dispute or difference arising out of the Agreement which cannot be amicably settled between the Parties shall be finally settled under the provisions of the Arbitration Act, 1940 (Act No.. X of 1940) and rules made thereunder as amended from time to time.
APPLICABLE LAWS:
The agreement shall, in all respects, be read and construed and shall operate in conformity with the laws and the courts at the location indicated in Appendix D, Special Conditions shall have exclusive jurisdiction for adjudicating and interpreting the Agreement.
CONTRACT AMENDMENT:
No variation in or modifications to the terms of the Agreement shall be made, except by a written amendment signed by the Parties hereto.
NOTICES:
Any notice given by any of the Parties hereto shall be sufficient only if in writing and delivered in person or through registered mail.
PAYMENT:
The Supplier shall be paid 998,100 /- PKR (Nine hundred ninety-eight thousand, one hundred Rupees only) for the Provision of the following Equipment (as mentioned in Table – A).
A breakdown of Unit cost is stated in the table below. All applicable taxes will be deducted at the source as per government law.
|
Sr. |
Particulars |
Units |
Qty |
Unit Cost |
Total |
||
|
1 |
MS Pipe, Dia 6 inch, 4mm thickness |
No |
1800 |
510 |
918,000 |
||
|
2 |
Flanges 12mm thickness for 6-inch
pipe with 8 holes for nut bolts welded @ per 20ft pipe piece with nut bolts
M16 and rubber packing 4 mm |
No |
180 |
445 |
80,100 |
||
|
Total: |
998,100 |
||||||
Payment Distribution:
20% of the total amount is to be paid in
advance.
80% of the total amount is to be paid after the delivery of the Goods.
Delivery Time:
Supply of all items is required to be delivered to the community within 6 Working days after the award of the contract, OR as agreed on delivery
time with the client.
Liabilities and Penalties:
The inspection of the above-said items will be
carried out by the ABC team. An inspection report should be submitted
for the final payment.
ABC is authorized to impose a penalty or
terminate the contract in case of failure to deliver within a given time or
any sub-standard items provided.
Signing this agreement means that the supplier agrees to all the terms and conditions of this agreement.
IN WITNESS WHEREOF, the
Parties have executed this Agreement, in two (2) identical
counterparts, each of which shall be deemed an
original, as of the day, month, and year first above written.
FOR AND ON BEHALF OF FOR AND ON BEHALF OF
_________________
____________________
Project
Engineer Designation:
General Manager
Real Engineering Services
Date and Venue________________________
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