DLF Limited

I. Procurement Management
I.1 Procurement Manual - Material

Procurement Manual - Material

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Version Control Chart

Version Number 1.0 Revised On
(mm/ dd/yyyy)

Effective From
(mm/ dd/ yyyy)

Prepared by

Approved By

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Purpose
The purpose of this Standard Operating Procedure (SOP) is to establish an effective, efficient and transparent procedural framework, in line with the Companys outlined policies, for management of the material procurement activities. This document intends to provide a detailed activity level framework, and the corresponding roles and responsibilities of different personnel, for material procurement covering the processes & sub processes as per the scope outlined below.

Scope
The material procurement manual covers the following processes: Planning and Requisitioning Identification of Supplier and Request for Quotation Comparative Analysis and Approval of Supplier Communication of the Delivery Schedule and the Purchase Order

Objectives
The purpose of this Manual is to ensure that the following objectives are met: The accurate assessment of the material required is done The indent for the material is raised on a timely basis The tendering process is conducted as per the company policy and guidelines Adequate number of quotations are received from the Suppliers The Suppliers are analysed on the technical and commercial front as per the policies and procedures laid down The Suppliers are approved by the appropriate approving authority All the information of the Suppliers are captured while generating the Supplier code Timely delivery of the material at the respective project sites The Purchase Order to be raised to the suppliers on a timely basis and also after the approval from the requisite authorities

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Contents
No. Particulars Page No.

1. 2. 3. 3.1 3.1.1 3.1.2

Process Overview Delegation Of Authority (DOA) Process Narrative Planning and Requisitioning Preparation and amendment of the BOQ (Other Purchases) Assessing the requirement of the material (Steel & Cement) Raising the Requisition for the material (Steel & Cement) Identification of Supplier and Request for Quotation Receipt of the BOQ and compilation of the Purchase Requisition Item Code Creation Identification of Suppliers and floating the request for quotation Comparative Analysis and Approval of supplier Technical / Commercial Analysis and Negotiation Selection of the Supplier (Other Purchases) Supplier / Contractor Database Management Communication of the Delivery Schedule and the Purchase Order Communication of the delivery schedule to

6 7 9 9 9

11

3.1.3

12 13

3.2 3.2.1

13 15 16

3.2.2 3.2.3 3.3

17

3.3.1

17 21 22

3.3.2 3.3.3

3.4

24 24

3.4.1

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the Supplier (Steel & Cement) 3.4.2 3.4.3 3.4.4 MOU / Rate Contract (Other Purchase) Raising the Purchase Order Amendment / Short Closure of the Purchase Order (Other Purchase) 25 27 31

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1.

Process Overview

SIPOC

Process Universe

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2.

Delegation of Authority (DOA)

Deputy General Manager (Purchase) Regional Technical Head Chairman & Managing Director (Projects) Head (Electrical & Mechanical) Electrical & Mechanical Team Manager (Stores) Head (Plumbing) Senior Manager (Purchases) Plumbing Team Vice President (Purchase) Senior Officer (Purchase) Project Team Project Head Group Head (Material) Senor Vice President (Purchase)

Activity

Planning & Requisitioning Preparation and amendment of the BOQ (Other Purchases) Calculation of the Bill Of C Quantity (BOQ) Amendment of the Bill Of Quantity (BOQ) Assessing the requirement of the material (Steel & Cement) Asses the requirement of material at the site Raising the Requisition for the material (Steel & Cement) Preparing the Purchase Requisition Identification of Supplier and request for quotation Receipt of the BOQ and compilation of the Purchase Requisition Preparation of the computation sheet A C

A A

R R

A A

R R

IT Team

R R

Item Code Creation (In case of new material) Creation of the Item Code Identification of Suppliers and floating the request for quotation to the Suppliers Preparation of the Covering letter Communicate the quantity required to the suppliers Comparative Analysis and approval of the supplier Technical / Commercial Analysis and Negotiation Analyze the Technical bids submitted by the supplier (Other Purchases) Analyze the Commercial Bids submitted by the supplier (Other Purchases / Steel & Cement) Negotiate and select the supplier A A A Selection of the supplier (Other Purchases) A A Preparation of the award sheet Supplier / Contractor Database Management Creation of the Supplier Code Communication of the Delivery Schedule and the Purchase Order Communication of the delivery schedule to the Supplier (Steel & Cement) Preparation of the Delivery A Schedule

C C R R R

C R A A

R R R C

R R

C R C

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Deputy General Manager (Purchase)

Regional Technical Head

Chairman & Managing Director (Projects)

Head (Electrical & Mechanical)

Electrical & Mechanical Team

Manager (Stores)

Head (Plumbing)

Senior Manager (Purchases)

Plumbing Team

Vice President (Purchase)

Senior Officer (Purchase)

Activity

MOU / Rate Contract (Other Purchases) Preparation of the MOU / Rate Contract Raising the Purchase Order Raising the Purchase Order (Other Purchases) / (Steel & Cement) Amendment to the contract Preparation of the Amendment Letter

A: Approval R: Responsibility C: Consultation

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Project Team

Project Head

Group Head (Material)

Senor Vice President (Purchase)

IT Team

3.

Process Narrative

3.1 Planning & Requisitioning

3.1.1 Preparation and amendment of the BOQ (Other Purchases)
No System Activity Key Control Owner Document Generated

Preparation of the BOQ

Receive and review the drawings, detailed specifications, BOQ (if received) from the External Architects / Service Consultants / Internal DAG 1. Manual (If BOQ received from the External Architects / Service Consultants then move step 3) Else (Move to step 2) Calculate the BOQ on the basis of the following: - Drawings and the detailed specifications received from the External Architects / Service Consultants - DLF standard guidelines - CPWD/IS Code Calculations (If not received from the External Architects / Service Consultants) 3. Manual Forward the BOQ to Head (Electrical & Mechanical) / (Plumbing) Ensure that : Review, approve the BOQ and forward the final BOQ, detailed specifications, list of makes , drawings along to the Group Head (Material) through the Regional Technical Head (Projects) (Refer Identification and request for quotation process) - All the quantities are in line with the CPWD/IS Code Calculations - Drawings and the detailed specifications received from the External Architects / Service Consultants - DLF standard guidelines Head (Electrical & Mechanical) / (Plumbing) Electrical & Mechanical Team / Plumbing Team Electrical & Mechanical Team / Plumbing Team Ensure that the drawings, detailed specifications and the BOQ (if received) are in line with the DLF standard and as per the guidelines provided to the External Architects / Service Consultants

Electrical & Mechanical Team / Plumbing Team

2.

Manual

Bill Of Quantity (BOQ)

4.

Manual

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No

System

Activity

Key Control

Owner

Document Generated

Amendment of the BOQ

Assess the requirement of additional material at the site and forward an intimation to the Electrical & Mechanical Team / Plumbing Team (During the construction / execution stage of the project) - In case only additional quantities are needed then just revise the quantity column in the original BOQ - In case additional material required then add the additional names of the material required along with the requisite quantity

5.

Manual

Project Team / Planning Team

6.

Manual

Revise the BOQ along with the list of additional items and forward it to Head (Electrical & Mechanical) / Plumbing for review (In case of extra requirement of the material at the site) Review , approve the revised BOQ and forward it to the Group Head (Material) through the Regional Technical Head (Projects)

Electrical & Mechanical Team / Plumbing Team

7.

Manual

(Refer Identification and request for quotation process) In case the Old Purchase Order needs to be revised Refer Amendment /short closure of Purchase Order

Cross check the requirement of the material requisitioned

Head (Electrical & Mechanical) / (Plumbing)

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3.1.2 Assessing the requirement of the material (Steel & Cement)

No System Activity Key Control Owner Document Generated

The assessment to be done on the basis of : - The BOQ for steel & cement for the particular project - The current stock / availability of the steel and cement at the site (If any) - The timelines of the project - The cement to be procured locally or imported - The nature of the project - The work planned at the site in the subsequent months

Asses the requirement of the material at the site for the particular project: 1. Manual Tentative requirement for next 3 / 6 months and the confirmed requirement for the next 1 month

Project Head in consultation with Manager (Stores)

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3.1.3 Raising the Requisition for the material (Steel & Cement)
No System Activity Key Control Owner Document Generated

Raise PR on the basis of: - The Steel & Cement 3/6 monthly procurement schedule approved by the Project Head - The Work schedule Ensure that the Purchase requisition to be serially controlled Ensure that the following fields are filled in the PR: - Material Code - Material Description - Material Quantity - Date of the requisition - Due date of delivery Ensure that the requisitions are raised as per the time lines defined in advance Approve the Purchase Requisition (Refer Identification and request for quotation process) 2. Manual And Forward the Purchase Requisition to the Purchase Department along with the tentative requirement for the next 3 / 6 months Ensure that all the data is correctly captured : - Material Code - Material Description - Material Quantity - Date of the requisition - Due date of delivery Project Head

Prepare the Purchase Requisition (PR) 1. Manual (On a monthly basis)

Manager (Stores) / Project Team

Purchase Requisition

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3.2

Identification of Supplier and Request for Quotation

3.2.1 Receipt of the BOQ and compilation of the Purchase Requisition

No System Activity Key Control Owner Document Generated

Receipt of the BOQ (Other Purchases)

Receive the BOQ, the list of makes, drawings, specifications from the Project Team via inter office memo and forward it to the Vice President (Purchase) (For preparation of the BOQ refer Planning & Purchase Requisitioning process) Forward the BOQ, the list of makes, drawings and the specifications to the respective Senior Manager (Purchase) Refer the specific rate contract of the approved Supplier and raise the Purchase Order (Refer communication of delivery schedule and Purchase order process) Else, in case of a new supplier follow the Identification of Suppliers and floating the request for quotation to the Suppliers process The BOQ to be approved by the requisite Project Head / Chairman & Managing Director (Projects)

1.

Manual

Group Head (Purchase)

2.

Manual

Vice President (Purchase)

3.

Manual

Senior Manager (Purchase)

Compilation of the Purchase Requisitions (Cement & Steel)

Receive the Purchase Requisition from the different project teams via E mail / hard copy format 4. Manual (For preparation of the Purchase Requisition refer Planning & Purchase Requisitioning process) Compute the total quantity of the material and prepare the computation sheet to be ordered for all the projects In case of a new item refer Item Code Creation process Else Refer Identification of Suppliers and floating the request for quotation to the Suppliers process The Purchase Requisition to be approved by the respective Regional Technical Head in hard copy , in case of E mail, it is to be copied to him Deputy General Manager (Purchase) / Senior Officer (Purchase)

5.

Manual

All the Purchase Requisition quantities to be added as per the different sizes and type

Senior Officer (Purchase)

Computation Sheet

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3.2.2 Item Code Creation (In case of a new material)

No System Activity Key Control Owner Document Generated

Fill in the Item Code Creation form and forward it to the IT helpdesk Following details to be mentioned in the form : - The requester name - Project Name - Requester contact number - Requester E mail ID - Request Date - The material name and description - The company name to which the item name is to be mapped - The unit of measurement for the particular item - The type of the item - Cost head description - Variant description - Costing Method - The last code created in the series

The mail to be copied to: - Head (Projects) - Manager (Projects) The following mandatory fields are captured correctly in the item code creation form: - The material name and description - The company name to which the item name is to be mapped - The unit of measurement for the particular item - The type of the item Ensure that the information is captured correctly from the requisition form The number would be manual and in the following format: Deputy General Manager (Purchase) (Steel & Cement) / Vice President (Purchases) (Other Purchases)

2.

Manual

Item code creation format

3.

RAMCO

Create the item code on the basis of the item code creation form received from the Senior Officer (Purchase) (Steel & Cement) / Senior Manager (Purchases) (Other Purchases)

- Group code - Class code - Running Numbers To ensure that : - The number is continued from the last number in the series as informed by the purchase team - The system ensures that there is no duplicacy of numbers

IT Team

4.

Manual

Intimate the creation of the item code to the Senior Officer (Purchase) (Steel & Cement) / Senior Manager (Purchases) (Other Purchases)

IT Team

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3.2.3 Identification of Suppliers and floating the request for quotation

No System Activity Key Control Owner Document Generated

Identify the respective Suppliers in the requisite locations from the existing database / the information regarding the Suppliers received from the Project Team (if any) 1. Manual In case of Other Purchases follow step 2 & step 3 Else, in case of Steel and Cement move to step 4 Prepare the covering letter to be forwarded to the Supplier for inviting the Technical & Commercial bids - Price Basis - Liquidated damages - Contract performance bank guarantee - Payment schedule - Offer - Deviation - Last date of receipt of offer Attach the tender documents BOQ, the list of makes, drawings (if required), technical specifications and forward it for the approval of Vice President

At least 3 Suppliers to be identified from the approved Supplier data base

Senior Officer (Purchase) (Steel & Cement) / Senior Manager (Purchases)

2.

Manual

Senior Manager (Purchases)

Covering Letter

Ensure that : - The terms and conditions are as per the standard / vetted terms and conditions - The request for the technical and commercial bids is sent to at least 3 Suppliers Communicate the total quantity of the material required via E mail to the identified Suppliers and request for the quotations from them (Refer Comparative Analysis and approval of the Supplier process) The mail to be copied to the DGM (Purchases) The request for quotation is sent to at least 3 Suppliers Senior Officer (Purchase) (Steel & Cement) / Senior Manager (Purchases) (Other Purchase)

3.

Manual

Review the terms and conditions of the letter and forward it to the identified Suppliers

Vice President (Purchases)

4.

Manual

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3.3 Comparative Analysis and approval of the Supplier

3.3.1 Technical / Commercial Analysis and Negotiation
No System Activity Key Control Owner Document Generated

Receive the quote (s) from the suppliers enclosing the following Annexure: - Technical Specifications & Specific comments - BOQ - Price quotes - Deviations enclosed with the offer (In case of any deviations in the technical specifications specified by the DLF) (In case of Other Purchases) (Go to step 3- Technical Analysis) Receive quotations from the Suppliers via E Mail 2. Manual (In case of Steel & Cement) (Go to step 13 Commercial Analysis Cement & Steel) Senior Officer (Purchase)

1.

Manual

Ensure that the quotations are received only from the suppliers to whom the RFQ was forwarded

Vice President (Purchase) / Senior Manager (Purchases)

Technical Analysis (Other Purchases)

3. Manual Summarize the technical deviations / comments as provided by the Suppliers and forward to Projects Team for review Analyse the technical deviations / comments of the Suppliers and prepare technical clarification against the observations/comments Forward queries to the Procurement Team for clarifications from the Supplier (In case of any clarification required on the technical front) Summarize & Forward the clarifications to the individual Suppliers for necessary action (Go to step 6 Commercial Analysis Other Purchases) Senior Manager (Purchase) Summary for technical deviations / comments

4.

Manual

Ensure that the technical data provided by the supplier is as per the Technical information communicated to the Supplier

Projects Team

5.

Manual

Senior Manager (Purchase)

Commercial Analysis Other Purchases

6. Manual Prepare the cost comparative Senior Comparative

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No

System

Activity

Key Control

Owner

Document Generated

statement as per the price quotes received from all the suppliers including - Name of the suppliers - Material required - Rate offered by the suppliers Schedule and inform the date of the techno commercial negotiation meeting to the Suppliers, Group Head (Material), Vice President (Purchase) & Projects Team Clarify the technical queries from the prospective suppliers (If any) and carry out price negotiations with them Record the final prices as per the negotiation with the suppliers for the particular bill of quantity Prepare final comparative statement as per the final prices provided by the Suppliers after the negotiation meeting Mention the : 10. Manual - Final Price offered by the suppliers - Budget for the particular material on the final comparative statement (wherever the budget is available) Forward to Vice President (Purchase) for review Review & Forward the final comparative statement to the Chairman & Managing Director (Projects) for approval of the supplier through Group Head (Material) 11. Manual (Refer Selection of the Supplier) In case MOU / Rate Contract is to be entered into with the Supplier (Refer communication of delivery schedule and Purchase order process) Ensure that the approved budget for the particular material is referred to Ensure that the minutes of the meeting are to be documented

Manager (Purchase)

Statement

7.

Manual

Senior Manager (Purchase) Group Head (Material), Vice President (Purchase) & Projects Team Senior Manager (Purchase)

8.

Manual

Minutes of the meeting

9.

Manual

Senior Manager (Purchase)

Final Comparative Statement

The rates are as decided in the meeting held (cross check with the minutes of the meeting)

Vice President (Purchase)

Cement & Steel

Prepare the cost comparative statement as per the price quotes received from all the suppliers - Project Name - Name of the suppliers On the basis of the price quotes received from the Suppliers Senior Officer (Purchase) Comparative Statement

12.

Manual

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No

System

Activity

Key Control

Owner

Document Generated

- Quantity Required - Rate offered by the suppliers - Availability with the supplier - The suppliers who would supply the different quantities for different projects Senior Officer (Purchase), Deputy General Manager (Purchase) & Senior Vice President (Purchase) / Group Head (Material)

13.

Manual

Negotiate the Prices with the prospective suppliers through meeting / Phone call

In case of meeting document the minutes of the meeting

Minutes of the Meeting

Prepare final comparative statement as per the revised prices received from the Suppliers after negotiation meeting and forward it to Deputy General Manager (Purchase) The following details to be captured in the comparative statement : 14. Manual - Project Name - Quantity Required - Rate offered by the requisite suppliers - Availability with the supplier - The suppliers who would supply the different quantities for different projects Review and forward the final comparative statement to the Senior Vice President (Purchase) / Group Head (Material) for approval Approve the final comparative sheet and forward to the Chairman & Managing Director (Projects) for approval Approve and forward the comparative sheet to the Deputy General Manager (Purchase) Forward the approved comparative sheet to the Senior Officer (Purchase) for the preparation of the Delivery Schedule and the Purchase Order

- The bifurcation of the quantity among the suppliers to be done on the basis of the requirement at the sites and the capacity of the suppliers catering to different locations - The approval number to be mentioned on the final comparative sheet as a continuation to the last approval number In case of the meeting held ensure that the rates are as per the meeting held (cross check with the minutes of the meeting)

Senior Officer (Purchase)

Final Comparative Statement

15.

Manual

Deputy General Manager (Purchase) Senior Vice President (Purchase) / Group Head (Material) Chairman & Managing Director (Projects) Deputy General Manager (Purchase)

16.

Manual

17.

Manual

18.

Manual

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No

System

Activity

Key Control

Owner

Document Generated

(Refer communication of delivery schedule and Purchase order process)

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3.3.2 Selection of the Supplier (Other Purchases)

No System Activity Key Control Owner Document Generated

Receive the approval from the Chairman & Managing Director (Projects) and Prepare the award sheet for the finalized supplier (The following details have to be captured in the Award Sheet: - Project: - Supply For - Supplier - Contract Value - Completion period with delivery schedule (if any) - Liquidated Damages - CPBG - Advance - Payment And forward the award sheet to the Vice President (Purchase) for his signature The terms and conditions are as per the standard / vetted terms and conditions Also the cost is as negotiated with the supplier in the techno commercial meeting (refer the minutes of the meeting) Vice President (Purchase)

1.

Manual

Ensure that the details are captured on the basis of the final quote received from the supplier / the approved comparative statement and the standard vetted terms and conditions

Vice President (Purchase) / Senior Manager (Purchase)

Award Sheet

2.

Manual

Review and forward the award sheet along with comparative sheet, BOQ & rates for approval to the Chairman & Managing Director (Projects) through the Group Head (Material)

Enter the date of completion, review and approve the award sheet and forward it to the Purchase Department for the preparation of the Purchase Order 3. Manual (Refer communication of delivery schedule and Purchase order process) In case of a new Supplier / Contractor refer Supplier / Contractor Database Management process)

Chairman & Managing Director (Projects)

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3.3.3 Supplier / Contractor Database Management (In case a new supplier / Contractor is selected)
No System Activity Key Control Owner Document Generated

Ask the requisite supplier / contractor for the following details via E Mail : - Supplier Name - Contact Person - Address 1 - Address 2 - Address 3 - City - State - Zip code - Country - Phone Number - Fax Number - Mobile Number - Email ID - PAN number - PF Number (Contractor) - TIN number (Refer selection of a new supplier / contractor) Receive the information from the supplier / contractor, fill in the Supplier / Contractor Code Creation form and forward it to the IT helpdesk Following details to be mentioned in the form : - OU Name - Requested by - Approved by - Email ID of the person approving - Request Date - Server - Supplier type - Supplier Name - Contact Person - Address 1 - Address 2 - Address 3 - City - State - Zip code - Country - Phone Number - Fax Number - Mobile Number

Ensure that the supporting documents are also received from the Supplier / Contractor for example : Identification proof, address proof, photocopy of the PAN Card, PF, TIN documents

1.

Manual

Senior Officer (Purchase) / (Steel & Cement) / Senior Manager (Purchases) (Other Purchases)

The mail to be copied to Deputy General Manager (Purchases) (Steel & Cement) / Vice President (Purchase)(Other Purchases) The following mandatory fields are captured correctly in the supplier code creation form : - Supplier Name - Address - PAN Number - Service Tax Number - TIN Number - Vendor Type (Supplier / contractor / consultant) - TDS Assessee Type The requisition for the Supplier Code is not forwarded to the IT Help Desk in case of Senior Officer (Purchase) / Deputy General Manager (Purchase) (Steel & Cement) / Vice President (Purchases) (Other Purchases)

2.

Manual

Item code creation format

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No

System

Activity

Key Control

Owner

Document Generated

- Email ID - PAN number - PF Number - TIN number - Supplier Group - TDS Assessee Type

absence of the supporting documents from the Supplier / Contractor Ensure that : - The information is captured correctly from the requisition form System ensures that :

3.

RAMCO

Create the Supplier Code on the basis of the vendor code creation form received from the Senior Officer (Purchase) (Steel & Cement) / Senior Manager (Purchases) (Other Purchases)

- The number would be auto generated and six digit alpha numeric format - That there is no duplicacy of the numbers - Also gives an intimation in case the PAN number, supplier name already exists in the database

IT Team

4.

Manual

Intimate the creation of the Supplier code to the Senior Officer (Purchase) (Steel & Cement) / Senior Manager (Purchases) (Other Purchases) Verify the data captured in RAMCO by the IT Team, intimate the IT Team regarding any changes (If Required) And Update the following details in the supplier / contractor manual database:

IT Team

5.

Manual

- Supplier Name - Contact Person - Address 1 - Address 2 - Address 3 - City - Phone Number - Mobile Number - Email ID (Refer communication of delivery schedule and Purchase order process)

Cross verify the data with the supporting documents received from the supplier

(Steel & Cement) / Senior Manager (Purchases) (Other Purchases)

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3.4 Communication of the Delivery Schedule and the Purchase Order

3.4.1 Communication of the delivery schedule to the Supplier (Steel & Cement)
System Activity Key Control Owner Document Generated

No

1.

Manual

Receive the monthly requirements / request for the urgent requirement of the material at a particular site from the respective project Head via E mail (For the calculation of the monthly requirement refer Planning & Indenting process) Prepare the delivery schedule for the timely delivery of the material at the sites The week wise requirement / any urgent requirement as per the need of the project to be communicated to the supplier Forward the delivery schedule to the Deputy General Manager (Purchase) (Refer Comparative Analysis and approval of the Supplier process) Review , sign the delivery schedule and forward it to the Senior Vice President (Purchase) Approve the delivery schedule and forward it to the Deputy General Manager (Purchase), Senior Officer (Purchase) Forward the delivery schedule to the Supplier via E Mail Raise the Purchase Order The mail to be copied to the Deputy General Manager (Purchase) The delivery schedule to be prepared on the basis of the requirement received from the sites The mail to be copied to: - DGM (Purchases) - Head (Projects) - Manager (Projects) Ensure that the delivery schedule to be prepared on the basis of the requirement received from the sites via E Mail / Purchase Requisition Ensure that the delivery schedule is as per the requirement at the different Project Sites

Group Head (Material) / Deputy General Manager (Purchase) Senior Officer (Purchase)

2.

Manual

Senior Officer (Purchase)

Delivery Schedule

3.

Manual

Deputy General Manager (Purchase) Senior Vice President (Purchase) Senior Officer (Purchase) Senior Officer (Purchase)

4.

Manual

5. 6.

Manual Manual

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No

System

Activity

Key Control

Owner

Document Generated

(Refer raising of Purchase Order for ordering process)

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3.4.2

MOU / Rate Contract (Other Purchases)

Document Generated

No

System

Activity

Key Control

Owner

Intimate the Senior Manager (Purchase) for the preparation of the MOU / Rate Contract , in the following cases: - If the material is a standard product 1. Manual - The supplier is offering at an attractive price for the material - The supplier is offering a reasonable validity for the price offered (Refer Comparative Analysis and approval of the Supplier process) Draft MOU / Rate Contract detailing: - Price - Validity - Quantity - Lead Time - General Terms & Conditions - Payment Terms - Specifications - Installation Schedule (If required) - Price Variation (If any) In case any Legal Term needs to be vetted then forward the Contract to the Legal department for vetting (Refer Legal Manual ) Else proceed to step 3 Forward the MOU / Rate Contract to the Vice President (Purchase) for approval along with the quotations forwarded by the supplier, the approved comparative statement Ensure that the terms and conditions agreed with the supplier during the negotiation meeting (cross check with the MOM if required) Also the rates captured are as communicated by the supplier via the quotation forwarded, the approved Ensure that : The details are captured on the basis of the comparative statement from the supplier / the approved award sheet DLF is under no legal obligation to buy a specific quantity of the material from the supplier Vice President (Purchase)

2.

Manual

Senior Manager (Purchase)

MOU / Rate Contract

3.

Manual

Senior Manager (Purchase)

Review and approve the MOU / Rate Contract 4. Manual Forward the MOU / Rate Contract to the Group Head (Material) for approval

Vice President (Purchase)

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No

System

Activity

Key Control

Owner

Document Generated

comparative statement 5. Manual Approve MOU / Rate Contract and forward it to Vice President (Purchase) / Senior Manager (Purchase) Forward the MOU / Rate Contract to the supplier and take acceptance from him For Ordering Process (Refer Raising of Purchase Order process) Group Head (Material) Senior Manager (Purchase)

6. 7.

Manual Manual

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3.4.3
No

Raising the Purchase Order

System Activity Key Control Owner Document Generated

Other Purchases
Prepare the Purchase Order to be issued to the vendor (Only for booking in the system not to be forwarded to the supplier) The following details to be captured in the purchase order : - The Company - The supplier code is mapped to the PO - Items to be procured are selected - Accounting unit - The delivery address - Supplier Tax number - The need by date - Quantity of the material required - General terms and conditions - CST & Tax - Payment schedule - Special remarks (if any) Also prepare the Manual Purchase Order simultaneously refer step 2 Prepare the Purchase Order to be issued to the vendor : The following details to be captured in the purchase order : - Scope of work - Description, quantities and rates - Technical specifications, list of approved makes with detailed bill of quantities and comments / clarifications on technical specifications - Excise duty - Educational cess - VAT - Freight & Insurance - Total order value (including excise duty, sale tax, freight and insurance) - The address of the site where the delivery has to be made - Completion period - Liquidated Damages clause - Contract performance bank guarantee - Mobilisation advance - Payment terms - Drawings System ensures that the Purchase Order number generated from the system Ensure that the Purchase order is prepared on the basis of the approved award sheet Senior Manager (Purchase) Purchase Order

1.

RAMCO

- The Purchase Order number to be referenced with the Purchase Order generated in RAMCO - Ensure that the Purchase order is prepared on the basis of the approved award sheet and the Purchase order in RAMCO Senior Manager (Purchase) Purchase Order

2.

Manual

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System

Activity

Key Control

Owner

Document Generated

- Inspection clause - Warranty - Arbitration /jurisdiction Sign and forward both the Purchase Orders for approval to the Vice President (Purchase) along with the approved comparative sheet , approved award sheet Ensure that : - The Purchase Order is as per the approved award sheet 3. Manual Review and approve the Purchase Order to be released to the supplier and forward the Purchase Order to the Group Head (Material) for approval - The terms and conditions are as per the standard / vetted terms and conditions - The Manual purchase order is as per the Purchase Order raised in RAMCO Approve the Manual Purchase Order and forward it to Senior Manager (Purchase) / Vice President (Purchase) Forward a copy of the Manual Purchase Order to the supplier and take acceptance of the supplier on the copies of the Purchase Order Prepare a docket of the following documents and forward it to the accounts team : - The Original approved award sheet 6. Manual - The Original Manual PO (After receiving from the supplier) - The Original system generated PO (After receiving from the supplier) (Retain the copy of all the documents for record) Senior Manager (Purchase) Group Head (Material) Vice President (Purchase)

4.

Manual

5.

Manual

Senior Manager (Purchase)

Cement / Steel
Prepare the Purchase Order to be issued to the vendor 7. RAMCO The following details to be captured in the purchase order : System ensures that the Purchase Order number generated from the system Ensure that the Senior Officer (Purchase)

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System

Activity

Key Control

Owner

Document Generated

- The company - The supplier code is mapped to the PO - Items to be procured are selected - Accounting unit - The delivery address - Supplier Tax number - The need by date - Quantity of the material required - General terms and conditions - CST & Tax - Payment schedule - Special remarks (if any) - The approval number as on the Final comparative sheet to be mentioned on the PO Sign and forward the Purchase Order for approval to the Deputy General Manager (Purchase) along with the approved comparative sheet

Purchase order is prepared on the basis of the approved comparative statement

Ensure that : Review and approve the purchase Order to be released to the parties and forward the Purchase Order to the Group Head (Material) for approval - The Purchase Order is as per the approved comparative statement - The terms and conditions are as per the standard / vetted terms and conditions Deputy General Manager (Purchase)

8.

Manual

9.

Manual

Approve the Purchase Order and forward it to Senior Officer (Purchase) Forward a copy of the Purchase Order to the supplier and take acceptance of the supplier on a copy of the purchase order Prepare a docket of the following documents: - The Original approved comparative sheet

Group Head (Material)

10.

Manual

Senior Officer (Purchase)

11.

Manual

- The Original system generated PO (After receiving from the supplier) - The quotations received from the vendors - The indent received from the projects team (Retain the copy of all the documents for

Senior Officer (Purchase)

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System

Activity

Key Control

Owner

Document Generated

record) And forward the Original system generated PO to the Accounts Team

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3.4.4 Amendment / Short Closure of the Purchase Order (Other Purchase)

Document Generated

No.

System

Activity

Key Control

Owner

Receipt of requirements for amendment / short closure of the Purchase Order

Receive the requirement for amendment / short closure of the Purchase Order from Projects Team via inter office communication through Project Incharge In case of change in quantity of BOQ (Revised BOQ) (For details refer to preparation and amendment of BOQ process) Or In case a Purchase Order needs to be short closed Forward to Vice President (Purchase) Forward to respective Senior Manager for processing of amendment to the Purchase Order In case of change in quantity of BOQ (Revised BOQ) or the short closure of the Purchase Order Ensure requirement for amendment is approved by Project Head or E&M(Head) / Plumbing Head Group Head (Material)

1.

Manual

2.

Manual

Group Head (Material)

3.

Manual

Vice President (Purchase)

Preparation of amendment Letter

Prepare amendment letter and generate amendment letter number to the Purchase Order as a covering letter: (The following details have to be captured on the amendment letter/Covering letter: - Amendment letter no - Reference no of the Purchase Order no with the project name - Reference of preceding amendment number(In case any) - Copy of amendment letter for signing as per the acceptance - Value of the Purchase Order - Value as per amendment - Variation in Value The following documents are required to be attached with the covering letter: - Revised Bill of Quantities Ensure amendment letter is prepared after incorporating the revised BOQ and the additional items(BOQ) Ensure amendment letter number is mentioned on the amendment letter Ensure the following information is captured while preparing amendment letter: - Amendment letter no - Reference no of the contract no with the project name - Reference of preceding amendment number(In case any) Senior Manager (Purchase Amendment Letter

4.

Manual

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System

Activity

Key Control

Owner

Document Generated

Forward the amendment letter along with the amendment documents to Vice President (Purchase) for review

- Copy of amendment letter for signing as per the acceptance - Value of the Purchase Order - Value as per amendment - Increase in Value Ensure revised BOQ and list of add ional items are attached with the covering letter

5.

Manual

6.

Manual

Receive & approve the amendment letter along with the amendment documents for review Forward the amendment letter to the Chairman & Managing Director (Projects) for approval through Group Head (Material) indicating the contract amount and the amended amount of the contract Ensure amendment letter is approved by Chairman & Managing Director (Projects) Ensure the amendment letter is forwarded to the contractor along with the revised BOQ & Additional items(BOQ)

Vice President (Purchase)

Vice President (Purchase)

7.

Manual

Forward the approved Amendment Letter along with revised BOQ and additional items(BOQ) to the Supplier for acceptance of the amendment

Senior Manager (Purchase)

8. 9.

Manual RAMCO

Receive the signed amended letter from the supplier as an acceptance of the amendment Amend / short close the Purchase Order and forward it to Vice President (Purchase) for review Review and approve the Purchase Order (RAMCO) Forward the Purchase Order (RAMCO) to Group Head (Material) for approval Receive the approved Purchase Order (RAMCO) from Group Head (Material) and forward via inter office communication as per following: - Original approved amendment documents comprising of Revised BOQ and the additional items (BOQ) to the Finance Team

Senior Manager (Purchase) Senior Manager (Purchase) Ensure Purchase Order is amended as per the approved amendment amount Ensure the Purchase Order is approved by the Group Head (Material) Ensure that all documents are circulated to the respective departments Vice President (Purchase)

10.

Manual

11.

Manual

Senior Manager (Purchase)

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System

Activity

Key Control

Owner

Document Generated

- Copy of amendment letter to the Site Office & Project Team

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