Which Documents Used in Purchasing Process?

Documentation of purchasing anything activity is a lengthy and hectic process in any organization, the procurement officer should need to start it from the A and go through Z as per the purchasing policies.  

In this article, we’ll describe the most common and easy procurement plan step by step.

Purchase Requisition Form

Basically, the purchase requisition form is starting the procurement from the market. Concern section head and project manager initiate the purchase requisition form and submit it to the procurement department for further process.  

Key parts of the purchase requisition forms are.

Part # 1

Description and list of goods/items needed to 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 & and submission dateline

Issued by (organization name and address)

Issued to (supplier name and address)

Item list as per RRF received from concern section

Evaluation Criteria (Quality of item with the lowest price)

Terms of payment (payment will be made as per rule and tax deducted from the payment)

Important note (quotation will be applicable for the specific time period)

Key requirements (sealed quotation in vendor’s letter head etc.)

Vendor receipt and acknowledgment.

Procurement Manager Job Description

Comparative Statement:

Date of evaluation

Quotations 1,2,3

Lowest quoted the price with all service charges and after sale service

Warranty period

Evaluation criteria

Maximum score

Recommendation of the evaluation committee

Purchase Order:

Purchase order #

Quotation Reference # and date

Vender name and address

Deliver time and location

Terms and conditions

Supplier acceptance

Good Received/Inspection Note GRN/GIN:

GRN/GIN #

Purchase order #

Date of Deliver

Invoice #

Supplier name and address

Items, Units, Quantity, Remarks, and inspection remarks

Goods/ Item received by _______________

Goods / Items Verified by ______________

Purchase Order Register:

Purchase order # and Date

Name of Supplier

Delivery Date

Item Description

Quantity ordered, delivered, 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

Invite to tender letter

Tender opening sheet

Technical evaluation Report

Financial evaluation

Contract approval sheet

Full Job Description of Finance Officer

The stages of comprehensive procurement procedures and steps mention in here above.  

Hope this information will give you benefits in your procurement plan.  However, it varies the terms and conditions in different locations and prices also may 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 as 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 priory intimated from the purchaser in written. 

Any items handed over to a nominated representative from ABC, deviating from specifications mentioned above will not be accepted and supplier will be responsible to change bearing all costs including replacement, transportation, and any other if applicable.

MODALITIES:

The performance of the Supplier shall be measured as the Supplier shall ensure the quality of items to be purchased, and 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 the Parties.

TERMINATION:

The Agreement shall terminate when, pursuant to the provisions hereof, the Provision of items on sites have 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 not later than ten 10 days of 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 it's an 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 a period of thirty (30) days of the date of such notice of intent to terminate referred 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 is able to overcome. 

If either Party is temporarily unable by reason 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 the notice, of the event within fifteen (15) days after its occurrence, such obligations of the Party, as it is unable to perform by reason 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 is 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, and one hundred Rupees only) for the Provision of the following Equipment (as mentioned in Table – A). 

Break down of Unit cost is stated in the below table. 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 inches 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 advance.

80% of the total amount is to be paid after the delivery of Goods.

Delivery Time:
Supply of all items is required to be delivered to the community within ____6____Working days after award of 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 have to be submitted for the final payment.

ABC is authorized to impose a penalty or terminate the contract in case of failure in delivering within a given time or any sub-standard items provided.

By signing this agreement means that the supplier is agreed 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________________________