SUPPLIER/SUBCONTRACTOR PURCHASING & RECEIPT PROCEDURE- PRO006.04

Transcription

1 SUPPLIER/SUBCONTRACTOR PURCHASING & RECEIPT PROCEDURE- Contents 1. INTRODUCTION: RESPONSIBILITIES Managing Director shall; Authorised Personnel shall; Project manager/site Manager: HIRING TOOLS AND EQUIPMENT Receipt of Goods and Materials Acceptance of Subcontractor Services Acceptance of Hired Equipment ASSESSMENT & APPROVAL OF SUPPLIERS & SUBCONTRACTORS SELECTION OF CONSULTANTS USE OF NON APPROVED SUPPLIERS & SUBCONTRACTORS PURCHASING DEFINITIONS Written purchase orders Verbal purchase orders Order Number/Reference PURCHASING PREPARATION PURCHASING PROCESS General and QHSE specific information Materials and equipment Subcontractor services Equipment hire PURCHASING GENERAL RECEIPT/COMPLETION OF ORDER Materials and equipment Subcontractor services Hire of tools and equipment INTRODUCTION: The purpose of the Clifford Constructions Pty Ltd procedure is to establish and maintain a process for assessing Supplier and Subcontractor services to ensure they meet the organisations quality, health, safety and environmental expectations and legal requirements. The following procedure establishes a process for monitoring the purchase and receipt of materials, equipment hire and obtaining services required to complete the contract. All goods and service purchased by authorised persons should remain consistent with the quality health, safety and environmental specifications and meet minimum Australian standards. All users of this procedure must refer to the relevant sections in PRO covering the inspection and testing and monitoring of goods and service etc. also refer to procedure PRO (Plant and Equipment) and the principals of safe design as described in the company procedure PRO Approval Date: 10/09/2014 Page 1 of 8

2 2. RESPONSIBILITIES 2.1 Managing Director shall; Assess Suppliers & Subcontractors to be used by the Company. Nominating an authorised person or persons to place orders for all materials, equipment and Subcontractor services using the approved Supplier/Subcontractor register. Review Supplier/subcontractors services for continuing suitability to provide the required product/service 2.2 Authorised Personnel shall; Adhere to company policy & procedures Ensure subcontractors are approved prior to engagement. Ensure compliance to specifications and requirements. Purchase Goods and Materials Purchase Subcontractors services. Report non-compliances to the supplier/provider and senior management. Provide all receipts/purchase orders (PO s) etc. to the accounts department. Shall seek approval for purchases over $ The following personnel are authorised to purchase materials from the approved Supplier/subcontractor register; all project PO s shall be processed & recorded in the CHEOPS system. Managing Director. Project Manager Site Manager Administration; (office supplies only) The following personnel are authorised to obtain Subcontractor services from the approved Subcontractor register; Managing Director. Project Manager/Site Manager 2.3 Project manager/site Manager: Adhere to company policy & procedures Ensure Service providers/subcontractors are approved prior to engagement. Ensure compliance to specifications, safe work methods and site requirements. Ensure all contractors plant, equipment and tools are tested and in a safe working order Verify plant or equipment, which requires registration, has current registration & meets the design safety requirements. This is to be recorded on FRM Check incoming products/goods or service meet specification and HS requirements Ensure contractors maintain site security and all plant & equipment stored away from inadvertent misuse. Ensure that service providers and subcontractors receive or have access to Site specific Management plan Keep records of PO s 3. HIRING TOOLS AND EQUIPMENT The following personnel are authorised to hire tools and equipment from the approved Supplier register; Managing Director. Project Manager/Site Manager 3.1 Receipt of Goods and Materials Persons receiving goods and services on site shall refer to the Inspection Testing and Monitoring procedure (PRO006.15) for incoming goods etc. for use on site. All personnel can receive deliveries (physical acceptance only). They are responsible for checking that there is no obvious damage and that the delivery docket is available to cover the delivery. The person receiving the delivery shall notify the person who placed the order or other suitably qualified Worker for content checking and verification. 3.2 Acceptance of Subcontractor Services The following personnel are authorised to accept completed Subcontractor services; Managing Director/Representative. 3.3 Acceptance of Hired Equipment All personnel can receive hire tools and equipment. The person receiving the delivery shall notify the person who placed the order or other suitably qualified Worker for checking and verification. Approval Date: 10/09/2014 Page 2 of 8

3 4. ASSESSMENT/APPROVAL & ENGAGEMENT OF SUPPLIERS & SUBCONTRACTORS This section shall include those organisations that are; A sole trader. Suppliers of goods and materials and/or supply hire tools and equipment ( Suppliers of general office and stationery supplies are not included). Subcontractors (supply labour only, or provide labour complete with materials and/or equipment to perform a service - a service provider). Initially all Suppliers and Subcontractor s Management Systems should be assessed generally by Clifford Constructions Senior Management using SCM Supplier/Subcontractor system assessment & approval. This form should not be sent to the Supplier or Subcontractor being assessed. It should be completed by the responsible person nominated and should accompany supporting information submitted by the subcontractors/service provider. All information shall be in the respective supplier/contractor s file located on the server & available for review. If at any time during the initial assessment stage it is found that the Supplier or Subcontractor does not have the capability to supply the required plant and equipment for hire or materials/goods then the process should cease and the potential Supplier/ Subcontractor notified. All existing Suppliers and Subcontractor s shall be assessed for their ability to provide Clifford Constructions with the requirements listed in form SCM Subcontractor Approval Checklist This form should be sent to the Supplier or Subcontractor being assessed. It should be completed by the organisation s responsible person and should accompany any supporting information regarding the supplier/contractor performance that is requested by Clifford Constructions. The form SCM is used and Sections complete as follows; Section A: Supplier/Subcontractor Details Supplier/Subcontractor s name, summary of goods/materials supplied, street and postal addresses, contact details. Section B: Supplier Assessment Assessment of the Supplier s ability to provide the goods and materials required. Section C: Subcontractor Assessment Assessment of the Subcontractor s ability to provide the materials, current certified equipment and services required. Section D: Supplier & Subcontractor Obligations If the Supplier/Subcontractor does not recognise or intend to conform to its legal requirements and obligations the Company SHALL NOT engage their services. Section E: Quality Management Assessment Assessment of the level of quality assurance is provided by the Supplier/Subcontractor. NOTE 1: Ideally all Subcontractor services the Company uses should have their own Quality system. NOTE 2: The Subcontractor shall have a satisfactory quality history and agree to accept and work within the Company s QHSEMS requirements for their part of any contract and to have & provide Inspection & Test Plans as required. Section F: Environmental Management Assessment Assessing the Supplier or Subcontractors commitment to its environmental obligations and responsibilities; Ideally all Subcontractor services the Company uses should have their own Environmental Management System. The Subcontractor shall have a satisfactory environmental history and agree to accept and work within the Company s Environmental Management System requirements for their part of any contract and to have & provide Environmental Action Plans as required. Section G: Health & Safety Assessment Assessing the Supplier/Subcontractor s shows commitment to preventing incident and injury and maintains a HSMS as a minimum. The Supplier may be required to have and Industry Induction Card if the Supplier delivers to within a construction site. All Subcontractors the Company uses shall have their own Management System or shall work within the Clifford s QHSEMS. The Subcontractor shall have a satisfactory HSE history and agree to accept and work within the Company s QHSE Management System requirements for their part of any contract and to have & provide Safe Work Method Statements as required. The document SCM Subcontractor Approval Checklist may be used to assist with the assessment of this section. Approval Date: 10/09/2014 Page 3 of 8

4 Section H: Insurance Assessment Summary of insurances held by the Subcontractor: Note that evidence of currency should be provided by the Subcontractor and submitted to Clifford Constructions prior to works commencing on site. Section I: Assessment/Approval & Engagement The person authorised for carrying out the assessment shall enter their name, date and signature. On completion of a satisfactory assessment the Supplier s or Subcontractor s company details shall then be recorded in the Approved Supplier Register s (document SCM SCM Approved Subcontractor Register s (as applicable) by Administration as required. When a subcontractor is engaged on a project, a contract, through CHEOPS will be sent to them. This will be forwarded to the QHSE department of Clifford Constructions, who will then send to the subcontractor, all relevant safety, quality & environmental requirements for the project, including any specific Client HSSE requirements eg BP, Caltex etc. If a subcontractor is engaged on a BP project, a signed acknowledgment of receipt & understanding of these requirements is to be obtained from the subcontractor. Subcontractors must have in place a contingency plan for the management of change. Section J: Performance Reassessment and Approval Suppliers shall be regularly monitored and assessed on performance to ensure that they maintain the ability to deliver the right quantity of the correct materials on time at a competitive price. Subcontractors shall be regularly monitored and assessed on performance to ensure that they maintain the ability to provide the desired service in accordance with the Company s QHSE policies and objectives and other requirements. The reassessment of Suppliers and Subcontractors performance shall be carried out at least every 24 months and a post-job safety performance review will be carried out at the end of each project and reported at the Monthly Management meetings. Section J of SCM Supplier/Subcontractor Assessment & Approval form, shall be used to record re-assessments. All non-conformances produced by the Supplier or Subcontractor shall be recorded using the Non-Conformance Report & Corrective Action Report. This NCR/CAR s shall be considered during re-assessments and may result in the removal of the Supplier s or Subcontractor's name from the Suppliers/ Subcontractor Register. The reassessment and approval of subcontractors shall be based on their performance throughout a calendar year. Project managers shall monitor contractors on site, re: Injury Rates, participation of safety meetings or ability to comply with requirements. Contractor performance shall also be reported at Management meeting reviews using MMR and monthly site performance reviews using FRM SELECTION OF CONSULTANTS Consultants may be used by the Company for administrative assistance/inputs e.g. QA Auditors, OHS Assessors, etc. The Company does not use Design Consultants. The Company does not carry out or provide design services. Clifford Construction relies on the client providing the necessary plans/drawings etc. The Managing Director shall consider the particular needs of the Company and select the appropriate Consultant(s), subject to analysis of their capabilities, previous experience, industry references and any other particular needs of the Company. Ideally all consultants shall be a registered company, which means they should have an Australian Company Number (ACN/ABN min) and the required insurances. If required, the Subcontractor sections of SCM Supplier/Subcontractor Assessment & Approval may be used as an assessment tool for Consultants. 6. USE OF NON APPROVED SUPPLIERS & SUBCONTRACTORS During emergency service work or other situations where an approved Supplier or Consultant/Subcontractor is not readily available a non-approved Supplier or Consultant/Subcontractor may be used for the short term i.e. that job only. Insurances (Workers Compensation and Public Liability must be checked for currency before any Consultant/Subcontractor is engaged. The continued or regular use of these non-approved Suppliers shall require the assessment process to be carried out. 7. PURCHASING DEFINITIONS Based on the following definitions this Company uses verbal purchasing processes only (telephone and over-the-counter) and a job/project reference for identification. 7.1 Written purchase orders Written orders may be in the form of a Supplier s quotation that has been approved and authorised by the above person(s) and returned faxed to the Supplier as notification of acceptance, written onto a Company purchase order, in the form of a letter on a Company letterhead or facsimile or as a Site Instruction to a Subcontractor. Approval Date: 10/09/2014 Page 4 of 8

5 7.2 Verbal purchase orders Verbal orders may be by person-to-person (e.g. to a visiting Supplier representative), at the counter (counter sales) or over the telephone. 7.3 Order Number/Reference An order number/reference is any form of identification that is used to identify a purchase order. It may be, but not limited to; A number from an order book or ledger. A work site address. A Clients name. A project or job description. 8. PURCHASING PREPARATION The following guidelines shall be followed by the Authorised Person in preparation for purchasing goods and materials, Subcontractor services and hiring plant and equipment. Before contacting a Supplier or Subcontractor assess the QHSE requirements as follows, assess the materials or equipment for potential quality, safety or environmental hazards e.g. The product quality meets requirements and specifications. Materials handling ability to handle the delivery during unloading and distribution. Health issues use of chemicals, use of synthetic fibres, raised dust from deliveries etc. Operation/use risks operating instructions, manufacturers guides/manuals. Certified or approved materials or equipment the materials or equipment comply with relevant Standards or design specifications. Spills or impact on the environment If changes are required ensure consultation takes place with the Client and the Client s approval is obtained. Assess the services to be carried out and apply the four principles of hazard control i.e. Eliminate of control the hazard - first preference. Substitute - if elimination is not possible see if there is a less hazardous process. Introduce engineering controls - if 1 & 2 cannot be implemented then use a barrier between the process and people. Administrative controls introduce procedures and instructions to reduce risk. If changes are required ensure consultation takes place with the Client takes place and the Client s approval is obtained. Assess that the tools or equipment to be hired are the safest and most suitable for the job to be carried out (apply the four principles of hazard control). All tools and equipment provided must comply with the applicable Australian standards and safety requirements. Ensure that personnel have been trained and (where applicable) are licensed to operate the tools or equipment to be hired. Use the Approved Supplier or Subcontractor Register (as appropriate) to select the most suitable Supplier or Subcontractor/Service Provider. Where possible obtain price and availability from the selected organisation, for the required materials/services. Where time permits this should preferably be in writing and include a quote or reference number and the name of the person supplying the quote (this would not apply for cash or over-the-counter sales). If the materials/services are not available from the Supplier or Subcontractor/Service Provider on the Supplier Register or cannot be made available within the required time then a survey of alternative Suppliers or Subcontractors/Service Providers shall be conducted. 9. PURCHASING PROCESS Generally all works shall have verbal (telephone and over-the-counter) orders placed where required by the Managing Director or authorised person/s; When placing a purchase order the following information must appear on the written purchase order or given for a verbal order for materials, Subcontractor services and equipment hire; The Company s details including billing address. The delivery address (and a contact name and phone number at that address if necessary). The order number/reference and date that the order was placed. The Supplier s quote or reference number (where applicable). A delivery/required by date. An authorising name and signature (or reference name if verbal). Approval Date: 10/09/2014 Page 5 of 8

6 9.1 General and QHSE specific information For all purchase requests and in addition to the above information the following additional general and QHSE information may be required when purchasing. 9.2 Materials and equipment A full description, including sizes/dimensions and quantities of the materials plus catalogue number (if available) must be given. Ensuring that the order specifications includes all relevant information for any constraints, approvals, etc. that may apply, e.g. Details of any specific documentation e.g. safety data sheets (SDS), test certificates, manuals, etc. that must accompany the order. All materials and equipment ordered must comply with the contract specifications, quality, QHSE and/or environmental criteria and requirements and (where applicable) Australian Standards, codes, etc. Any important delivery advice, e.g. no crane available, goods must be palletised, etc. Any important packaging advice, e.g. goods must not be plastic wrapped, removal of packaging materials from site by Supplier, etc. 9.3 Subcontractor services The following general information should be given when purchasing Subcontractor services; A description of what is to be done. A statement that all materials and equipment used must comply with the contract specifications, QHSE criteria and requirements and (where applicable) Australian Standards, codes, etc. The applicable authorised person shall obtain and review from the Subcontractor, records of tools and equipment maintenance, calibration and frequency of servicing for all of their equipment used on site. Any important reporting and safety advice or other site specific advice, e.g. report to Site Office on arrival, phone for an escort on arrival, site induction prior to commencement, approvals required etc. Other requirements to carry out the works e.g., licences, searches, training, safe work method statements, environmental action checklists, etc. Any specific documentation e.g. QHSE work plans/instructions (WMS s, SWI s), environmental work plans/instructions (EAP s EIS s), quality work plans/ instructions (ITP s), test certificates, inspection reports, test data, etc., that must accompany or be handed in on completion of the works or service. 9.4 Equipment hire Where calibration or measurement equipment is provided by the Subcontractor then proof of recent calibration must available. The following general information should be given when hiring equipment. If the equipment is to be delivered by the Hirer; reporting and safety advice, e.g. report to Site Office on arrival, phone for an escort on arrival, etc. A description of the tools and equipment to be hired. A copy of the operating and/or safety instruction documentation must be provided for the tools and equipment prior to their acceptance. A copy of any specific documentation e.g. test certificates, inspection reports, log books, compliance data, etc. that must accompany the tools or equipment on delivery. Where calibrated equipment is hired then proof of recent calibration must be obtained from the Hirer. 10. PURCHASING GENERAL A copy of the purchase order shall be filed as per the manner stated in the Document, Data and Record Control procedure. If changes or additions to the original purchase order are needed, these shall be processed in the same manner as the original. All materials, services and equipment ordered must comply with the contract specifications, or applicable Australian standards and safety requirements. Materials, services and equipment required for special projects shall only be ordered after completion of all drawings and acceptance of contract. Always confirm with Supplier of any time delay, if needed seek alternative Supplier. Always advise Client of any additional delay and obtain Client agreement. Approval Date: 10/09/2014 Page 6 of 8

7 Where specified in the contract, the purchaser or his representative shall be afforded the right to verify at source or upon receipt that purchased product conforms to specified requirements. Verification by the purchaser shall not absolve the Supplier of his responsibility to provide acceptable product nor shall it preclude subsequent rejection after installation. 11. RECEIPT/COMPLETION OF ORDER 11.1 Materials and equipment All personnel can receive deliveries (physical acceptance only). They are responsible for checking that there is no obvious damage and that the delivery docket is available to cover the delivery. The person receiving the delivery shall notify the person who placed the order or other suitably qualified Employee for content checking and verification. The person who placed the order or other suitably qualified Employee shall be responsible to; Ensure the goods shown on the Supplier s Delivery Docket match the description of the goods ordered. The delivery docket is sent to the Office for reconciliation with the purchase order and Supplier invoice/statement. Check the goods delivered match the order details e.g. the quantity and description of the goods received is correct. This may include name plate data, where applicable, Supplier s inspection test certificate/s, etc., (where required). NOTE 1: If there are any discrepancies with the delivery e.g. short supply, incorrect items, etc., implement remedial action. This may be a phone call to the Supplier to notify them of the problem and have it immediately rectified. List all back-order items on purchase order (if not already listed) and confirm this with the Supplier. Ensure that, where applicable, the goods comply with regulations, standards and specifications as specified when ordered. If a product or material does not comply as specified it shall be removed to storage and tagged or marked with a felt pen indicating its non-conformance, if necessary, recorded on Minor Non-Conformances Register and the Supplier notified immediately for pick up and returned for corrective action, exchange or credit. Ensure the materials and equipment delivered are in good condition and undamaged and Comply with the manual handling and packaging requirements specified at the time of placing the order. If a product or material is damaged in any way it shall be removed to storage and tagged or marked with a felt pen indicating its non-conformance, recorded on form Minor Non-Conformances Register and the Supplier notified immediately for pick up and returned for rework, exchange or credit. Damage shall include damaged or obscured labels particularly those on chemicals and other hazardous/flammable goods that give handling and other precautions, depicting safe lifting points, describing stacking instructions and the like. If a product or material is not packaged as specified it shall be removed to storage and tagged or marked with a felt pen indicating its non-conformance, if necessary, recorded on form FRM Minor Non-Conformances Register and the Supplier notified immediately for pick up and returned for corrective action, exchange or credit. Ensure test certificates, MSDS, instruction manuals, manufacturers instructions and any other specified documentation have accompanied the delivery (where applicable). NOTE 1: Tools and equipment that have been purchased and are subject to calibration or other testing/licensing requirements must be entered onto the FRM Measuring & Monitoring Equipment Test/Calibration Register and/or the Certified, Licensed, Registered Plant & Equipment Register as applicable before use. NOTE 2: All purchased tools & equipment (except electrical tools) shall be approved, logged into the appropriate register or form and inspected before use on site. NOTE 3: Electrical tools shall be approved, tested and tagged (if required) then logged into the Electrical Tools & Equipment Test Register. NOTE 4: All chemicals and other hazardous materials should be subjected to Hazardous Substances Risk Assessment before purchasing and must be approved and registered on a Hazardous Substances Register before use on site Subcontractor services On completion of the Subcontractor works the authorised person (or nominee) accepting the Subcontractor services shall be responsible to; Check that the work performed and equipment and materials used against the purchase order and comply with the contract specifications, or applicable Australian standards. The Subcontractor has left his work site in a clean and safe condition. A copy of all tests and inspection documentation and any other specified documentation is available and shall be filed as per the manner stated in the Document, Data and Record Control Procedure. Approval Date: 10/09/2014 Page 7 of 8

8 All non-compliances must be recorded and corrective action carried out. Ensure the sub-contractor post appraisal form SCM009.08) is issued and completed by Site and project managers Hire of tools and equipment All personnel can receive hire tools and equipment. The person receiving the delivery shall notify the person who placed the order or other suitably qualified Employee for checking and verification. The person who placed the order or other suitably qualified Employee shall be responsible for ensuring the following; Where hired tools and equipment that are subject to calibration or other testing/ certification requirements are received, proof of recent calibration/testing/certification has been provided by the Hirer before use. This proof shall be filed as per the Document, Data and Record Control procedure. If necessary complete Motor Vehicle Status Report or Mobile Plant Status Report if required. All hired equipment (except electrical tools) for use by the Company shall be approved, logged into the appropriate register and inspected for use before delivery or use on site. Electrical tools shall be approved, tested and tagged (if required) then logged into the Electrical Tools & Equipment Test Register before use. All chemicals and other hazardous materials that may accompany hire tools and equipment should be subjected to a Hazardous Substances Risk Assessment and must be approved and registered on Hazardous Substances Register before use. On completion of the use of the hired tools and equipment an Off Hire number has been obtained from the Hirer and have the tools or equipment clean and ready for pick-up. A copy of the Off Hire number shall be filed as per the manner stated in the Document, Data and Record Control procedure. All non-compliances have been recorded for attention. Associated Documents: FRM Minor Non-Conformances FRM Plant Checklist FRM Customer Supplied Product Register FRM Non-Conformances/Incident/Accident Register FRM Measuring & Monitoring Equipment Calibration Register FRM Hazardous Substances Register FRM QHSE Performance Report FRM Inspection & Test Plan Blank PRO Inspection Test Procedure PRO006.22Electrical Safety Procedure PRO Issue Resolution Purchase Orders PRO Safe Design Procedure PRO Plant & Equipment Safety Procedure SCM Supplier/Subcontractor System Assessment & Approval SCM Subcontractor Approval Checklist SCM Subcontractor appraisal form Site Folders Approval Date: 10/09/2014 Page 8 of 8