Form: Procedure Issue# (1) Rev. (0) Rev.

Date: QAF-02-01

Procurement and Purchasing Procedure

Issue Procurement Department Revision

1 01/01/2017 PUP-01 0

1- DOCUMENT ACCEPTANCE AND RELEASE NOTICE:

This is Issue no. 1of the procurement procedure.

The procedure is a controlled document. For identification of amendments each page contains an issue
number and a page number. Changes will only be issued as complete replacement. Recipients should remove
superseded revision from circulation. This document is authorised for release once all signatures have been
obtained.

2- PROCEDURE OWNER:
1. Procurement Manager

3- UPDATE HISTORY:
Issue Rev. No. Date Clause No. Amendment Summary Requester
0 Initial Release According to ISO 9001:2015
01/01/2017 All Consultant
and OHSAS 18001:2007
1
1 2
3
4

2 0

4- APPROVAL AND AUTHORIZATION:

Name Job Title Signature
Prepared By :

Approved By :

Authorized By:

Stamp

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Form: Procedure Issue# (1) Rev. (0) Rev. Date: QAF-02-01

Procurement and Purchasing Procedure

Issue Procurement Department Revision

1 01/01/2017 PUP-01 0

5-INTRODUCTION:
5-1 Purpose The main purpose of this process is to establish a system for the
process of procurement and purchasing designated to ensure that
procured goods/ services/processes conform to specified
requirements.

5-2 Scope
This procedure is applicable to all procurement and purchasing
activities starting from receiving purchasing request/tender
documents till the supply of the products/provision of the service by
the external provider. This procedure includes the following
processes:
6-1 Purchasing process
6-2 procurement process
6-3 selection, evaluation and re-evaluation of external
providers

5-3 Important terms and definitions N/A

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Form: Procedure Issue# (1) Rev. (0) Rev. Date: QAF-02-01

Procurement and Purchasing Procedure

Issue Procurement Department Revision

1 01/01/2017 PUP-01 0

6-1 PROCESS FLOW CHART: (Selection, evaluation and revaluation of external providers process)
Step Flowchart Responsible / Details
The Procurement Department is responsible for the
selection, evaluation and re-evaluation of any external
Start provider who is expected to deal with the company based
on their ability to supply purchased products/services in
accordance with Solid Constructions Co. requirements.
1 Evaluation and Selection of Selection Criteria:
external providers PUF-01-01 Commercial Registration and Tax Card.
Previous experience and Location of the provider.
Quality, prices, payment and delivery terms.

Procurement Team/Procurement Manager

PUF-01-02A Add the evaluated and selected external providers to the

Approve and add to EP approved external providers' database. The procurement
database PUF-01-02B
team monitors the performance of the external providers
2 accordingly as per purchasing requirements/contract with
Monitoring performance of PUF-01-07A the external provider.
External provider PUF-01-07B
Procurement Manager/Team
External providers are evaluated semi-annually; the
PUF-01-08 evaluation process is conducted by the concerned
PUF-01-09 department manager who deals with the external providers
PUF-01-10 (the project manager in case of project's
subcontractor/supplier). If the result of evaluation is
Evaluation/
Re-evaluation
accepted, the co. will continue dealing with the
of Supplier supplier/subcontractor, otherwise, he will be re-evaluated
Accept Reject after three months.
80%< <70% Evaluation Criteria:
External Providers good reputation in the market.
From 80 to 70 Previous deals of this provider with other organizations in
the same field.
3 The offers and information received from the external
Continue Warning providers relating to the purchase
dealing Terminate
dealing order/contract/specifications.
The supplier record of compliance of delivery schedules
Re-evaluate
End after 3 months as planned in purchasing document.
End Compliance with the company quality requirements and
occupational health and safety requirements.
Qualification of persons who perform the work.
The evaluation of external providers is approved by the
procurement manger.
Concerned Manager/Procurement Manager

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Form: Procedure Issue# (1)
Procurement and Purchasing Procedure
Issue
1 01/01/2017
6-2 PROCESS FLOW CHART: (the procurement process)
Step Flowchart
Start
1 drawings, the project plan, QS, (Particular Conditions -
Project documents,
terms and conditions
Preparing the projects
material plan
2 [In this step, the procurement manager receives a copy
Analyzing and
categorizing cost elements
3
Select appropriate offer
and send to consultant for
4 approval
A Procurement Team/Procurement Manager
Rev. (0) Rev. Date: QAF-02-01
Procurement Department Revision
PUP-01 0
Responsible / Details
After the new project is being awarded to the company,
as well as the contract has been signed with the client and
our side, the procurement manager receives a copy of
project documents (contract, specifications, dry cost,
General Conditions and BOQ).
Document Controller
In coordination between the planning manager, Project
Manager, Technical office Manager, procurement
manager and the Financial Manager, the material plan is
Material plan being prepared and approved from operations director, a
copy of the material plan is sent accordingly to the
financial manager to provide the necessary financial
liquidity.
from the project schedule to start the selection and
contracting with the suppliers/subcontractors pertaining
to the project].
Planning, Project, Technical Office, Procurement
and Financial Managers
Accordingly the procurement manager starts by
analyzing the material plan (whether supplying or
subcontracting) based on differing categories included in
the project material plan (i.e. civil, architectural,
mechanical, electrical) in coordination with the
project/operation team.
Procurement Manager
The most appropriate offer pertaining to the selected
external provider (based on the suppliers list selected by
the consultant) is being sent along with
catalogues/samples/methods to the project consultant
(client's representative) to be approved prior to
communication to the supplier.
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Form: Procedure Issue# (1) Rev. (0) Rev. Date: QAF-02-01

Procurement and Purchasing Procedure

Issue Procurement Department Revision

1 01/01/2017 PUP-01 0

6-2 PROCESS FLOW CHART: (the procurement process)

Step Flowchart Responsible / Details
The procurement team then issues a request for quotation
A R.F.Q/proposal R.F.P approved from the procurement
manager and submits it by e-mail/fax to some approved
5 suppliers/subcontractors.
Submit RFQ to some RFQ/RFP
approved external providers
Procurement Team/Procurement Manager

Upon receiving the responses from the external

Conducting a comparison
among offers and selecting
the best provider
6 providers/subcontractors
providers/subcontractors (technical and financial offers,
catalogues, samples, delivery schedulesetc.) on the
tasks/materials specified in the RFQ, the procurement
PUF-01-04 team conducts a comparison among different offers and
accordingly select the best external
for the
products/services/processes being procured, taking into
consideration quality, safety, prices, conditions and any
other requirements to the procurement manager.
Procurement Team/Procurement Manager

Accordingly, after the best supplier/product is being

approved from the consultant.
No Find another In case of supply of materials:
Approved? External provider The procurement team prepares a purchase order P.O.
and submits it to the selected external provider after
being approved from the procurement and financial
Yes
managers to ensure the adequacy of specified purchase
7 requirements.
In case of supply and installation: a contract agreement
Issue PO and Issue contract specifying all relevant conditions is being prepared by
submit to supplier or agreement the procurement team and then signed by the both
parties.
PUF-01-05 PUF-01-06 Procurement Team/Procurement
Manager/Financial Manager

The procurement team follows up and tracking the

delivery of the purchased goods/processes by the external
provider according to the agreed delivery terms by the
Follow up and PUF-01-07A
tracking the delivery
external provider. The procurement team as well notifies
PUF-01-07B the warehouse keeper at the project site with the
8
incoming items to make a space ready for the items, as
well as the QC engineer.
A
Procurement Team

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Procurement and Purchasing Procedure

Issue Procurement Department Revision

1 01/01/2017 PUP-01 0

6-2 PROCESS FLOW CHART: (the procurement process)

Step Flowchart Responsible / Details
Upon the delivery of the materials to the project site, the
A warehouse keeper receives items and keeping them in the
receiving area till comparing the quantities with the
purchase order, and then keeps the products in receiving
Procured items are area till its inspection by QC engineer. The warehouse
delivered to the site keeper notifies procurement manager, and responsible
managers about the delivered products in order to be
Keeping items in receiving
inspected and then received in the company stores (After
area till QC inspection the inspection process takes place, the procurement
9 manager receives a copy of the goods receiving note
from the warehouse keeper for records). (materials
pertaining to the subcontractors after being inspected by
the QC are being kept in the site store and not added to
the items balances).
[Refer to Warehousing procedure (WHP-01) for
more info]
Warehouse Keeper/QC Inspector

In case of receiving any nonconforming products (to the

specifications, or purchasing data specified by the
department issued purchase request), the QC engineer
reports to the procurement department, stores, and
Accept QC Reject finance department about the discrepancy in writing.
Inspection
In this case the procurement manager shall inform the
10 supplier with the rejected items, and shall be returned
Store in the Items refused and
warehouse return it back to back to the supplier immediately. The supplier should
provider be asked to make the necessary corrective action and
report to the procurement department.

QC Engineer

The Procurement Manager receives the subcontractor's

statements (bills) from the project team and Technical
Review and approve office Team after review, and in accordance with the
sub-contractors contract terms and conditions. Subcontractor statements
statements (Bills) are consequently approved by the procurement manager
11
and sent finally to the financial manager to act upon.
Send to finance
Procurement Manager
Dept. to act upon. End

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Form: Procedure Issue# (1) Rev. (0) Rev. Date: QAF-02-01

Procurement and Purchasing Procedure

Issue Procurement Department Revision

1 01/01/2017 PUP-01 0

6-3 PROCESS FLOW CHART: (The purchasing Process)

Step Flowchart Responsible / Details
The requesting department issues a purchasing request
Start
with any items requested (for the Head Office or Project
site), in case the requested items were found not
available at the company/stores or the current stock
levels of the corresponding items have been checked and
Request for
found not adequate. Consequently, the requesting
items/services
department issues the purchasing request/request of
subcontractor specifying all available relevant
information, and then approves it from
B. Request for A. Supply of goods department/project manager, and sends to procurement
Subcontractor manager to act accordingly (note 1).
In the project: In case of any new items required other
than those mentioned in the material plan:
1 Yes Stock The project manager/site engineer notifies the technical
available office engineer at the site with the requested items, who
Stock transfer from will refer to the warehouse keeper to ensure that the
No items do not exist absolutely "or not enough" at any of
nearst store
the co. stores (In case they do not exist or their quantities
Issue Purchasing are not enough the warehouse keeper then will issue a
End Request request of items requested and send it to the procurement
manager to act upon). In case the items do exist at any
store the items will be transferred immediately from the
PUF-01-03 nearest store.
Requesting Dept. Mgr./Technical
office engineer/warehouse keeper
Upon receiving the purchasing request/Request for
subcontractor, the procurement manager and Cost
Control engineer then review the adequacy/clarity of
information mentioned in the purchasing request/Request
Check all purchasing PUF-01-03 for subcontractor (note 2 & 3).
information are adequate/clear PUF-01-11
Purchasing information includes:
Description for the Items, quantity, type of the
products, services or processes...etc.
2
A Drawings, specifications and all technical
requirements (if applicable).
Quality system to be applied in the external
providers organization (i.e. specific tests or pre-
qualifications).
Any safety and other requirements as applicable.
Procurement Manager

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Form: Procedure Issue# (1) Rev. (0) Rev. Date: QAF-02-01

Procurement and Purchasing Procedure

Issue Procurement Department Revision

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6-3 PROCESS FLOW CHART: (The purchasing Process)

Step Flowchart Responsible / Details

Accordingly, the procurement manager and procurement

A
team then issues a request for quotation R.F.Q/request
for proposal to some approved suppliers/subcontractors.
Submit RFQ to some approved Upon receiving the responses from the external
RFQ/RFP
suppliers/subcontractors providers, a comparison is being held to get the most
3
appropriate prices and conditions for the purchased
products/services, taking into consideration quality,
Comparison among PUF-01-04 safety and any other requirements.
received offers
Procurement Manager

After selecting the best offer, the procurement team

prepares a purchase order P.O. and approves it from the
procurement manager and the financial manager. Upon
Supplier Subcontractor ensuring the adequacy of specified purchase
requirements prior to their communication to the
Submitting the Issue contract supplier, and the procurement manager submits the P.O.
P.O to the Or agreement to the along with all available purchasing documents (i.e.
4 selected supplier subcontractor documents specifying products, services and process
requirements) to supplier.
PUF-01-05 PUF-01-06 In case of a subcontractor request: a contract or lease
agreement (in case of lease of equipments) specifying
all relevant conditions is being prepared by the
procurement team and then signed by the both parties.
Procurement Manager

Procured items are The warehouse keeper receives the purchased products
delivered to the site and compares it with purchase order, and then keeps the
products in receiving area till its inspection. The
warehouse keeper notifies procurement manager, and
Keeping items in receiving responsible managers about the delivered products in
area till QC inspection
order to be inspected and then received in the company
5 stores (After the inspection process takes place, the
procurement manager receives a copy of the goods
QC receiving note from the warehouse keeper for records).
Accept Inspection Reject
Warehouse Keeper/Reception Employee

A B

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Form: Procedure Issue# (1) Rev. (0) Rev. Date: QAF-02-01

Procurement and Purchasing Procedure

Issue Procurement Department Revision

1 01/01/2017 PUP-01 0

6-3 PROCESS FLOW CHART: (The purchasing Process)

Step Flowchart Responsible / Details

A B In case of receiving any nonconforming products (to

Store in the Items refused and return
warehouse it back to provider
6 supplier with the rejected items, and shall be returned
Results are recorded in
the goods receiving note
(6-1)
the specifications, or purchasing data specified by the
department issued purchase request), the QC inspector
reports to the procurement department, stores, and
finance department about the discrepancy in writing.
In this case the procurement manager shall inform the
back to the supplier immediately. The supplier should
be asked to make the necessary corrective action and
report to the procurement department.
QC inspector

At the end of the project, the Procurement Manager

receives the supplier invoices/the subcontractor's
Review and approve sub- statements from the project team and Technical office
contractors statements/supplier Team after review, and in accordance with the contract
invoice terms and conditions. Subcontractor statements are
7 consequently approved by the procurement manager and
Send to finance sent finally to the financial manager to act upon.
Dept. to act upon.
Procurement Manager

End

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Form: Procedure Issue# (1) Rev. (0) Rev. Date: QAF-02-01

Procurement and Purchasing Procedure

Issue Procurement Department Revision

1 01/01/2017 PUP-01 0

7-LIST OF FORMS:
Form Code Rev. No.
Supplier and subcontractor registration form PUF-01-01 0
Active sub-contractor data base PUF-01-02A 0
Active supplier database PUF-01-02B 0
Purchase request PUF-01-03 0
Cost comparison sheet PUF-01-04 0
Purchase order PUF-01-05 0
Subcontractor agreement PUF-01-06 0
Purchase order circulation sheet PUF-01-07A 0
Contract circulation sheet PUF-01-07B 0
Supplier evaluation sheet PUF-01-08 0
Subcontractor evaluation form PUF-01-09 0
Sub-contractor evaluation sheet PUF-01-10 0
Purchase request log (for project) PUF-01-11 0

8-DISTRIBUTION LIST:
Copy Serial Title Area / Dept.
1 Chairman Top Management
2 General Manager Top Management
Procurement Manager Procurement

9-NOTES:
1- In case of deficiency/need of any item or material in any department, the requesting department issues a "Goods
Issue Note" specifying the description of the required goods. In case of the availability of those items/materials
in any of the company stores: the goods are withdrawn directly from the concerned store or transferred from
other stores where appropriate.
2- In case of use of the ERP system: if the requested items were not existing at the ERP system, the details of the
new items such as products description and code are added to the system through the procurement department.
3- All purchasing requests received in each the project are recorded in the purchase request log (PUF-01-11), to
better tracking of the request till the goods are delivered to the site.
4- The reports of the evaluation of the external providers are analyzed and discussed in management reviews.

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