Procurement and Subcontracting
We can provide the following services in the project procurement and subcontracting activities:
- Identification of the work / packages to be procured and subcontracted.
- Detailed description of the work to be subcontracted inclusive of the extent of design and material supply by Subcontractor
- Finalizing approved vendor list
- Procurement from request for quotation (RFQ) issue through bid receipt, technical review, approval cycle, issue of purchase order upto receipt of material.
- To ensure all procurement activities are planned and executed in line with the dates set out.
- To provide a controlled method for monitoring of the procurement and subcontracting activities.
- To provide a mechanism for procurement progress measurement.
- Provide expediting supports
The RFQ package, including the technical information, will be generated together with our client to ensure that all relevant specification and data sheets are in place prior to issue to procurement group and ultimately to vendor. The sourcing of goods and services shall take place based in compliance with the project requirements.
All procurement selections will take place only after a competitive bidding process, which will be subjected to the client’s procurement policy, or at least to the following guidelines:
- Shall follow the client approved bidder list, and shall be directed to vendors whom it is assumed have an equal opportunity to win the business.
- A minimum of three (3) competitive bids must be requested for orders with a value greater than a set value (e.g. USD 1000). The bids must be supported by written quotations and by a Commercial Bid Evaluation (CBE).
- A Technical Bid Evaluation (TBE) shall be performed on all items where the project team must provide input prior to finalizing a purchase decision. The TBE shall objectively compare the requirements of the requisition and the technical documentation provided by the vendor. It is recommended that the evaluation to have categorical evaluation system based on points and ranking.
- The procurement manager in consultation with project manager depending on the critical rating of the RFQ will decided if the bid submission should be via a sealed bid or open bid.
Purchase orders will be placed with technically qualified vendor with the most competitive commercial offers. Besides the technical requirement for the material, equipment, services, etc., the purchase order will include provisions of HSE and QA requirements, including inspection, testing and acceptance criteria that meet the project requirements and specifications.
Expediting and Follow Up
We can also work as the expediter who hold the prime responsibility of ensuring that purchased items are delivered by promised dates.
In addition to expediting delivery of equipment and materials, we can also coordinates vendor data and drawings, monitors vendors for material acquisitions, and verifies that promised deliveries are compatible with vendor shop loads and that progress is in accordance with the agreed plan. All aspects of expediting are documented by entries into the procurement system, which generates reports highlighting order status (such as project material status or the expediting action report). Items critical to the production schedule are vigorously and continually expedited by visits to vendor manufacturing facilities, or by coordinating with the site inspection team. Such critical items can include vendor sub-ordered materials. The expediting activities should also include the receipt of certification documents (e.g. test certificates), vendor data and shipping documents.
A project quality management system can be setup by us to provide the client with guidelines on the responsibilities & resources within the project organization, to identify critical quality-related activities and to define the controls required to ensure that the quality management objectives are met:
- Ensure that the project resource requirements are identified and recorded
- Ensure that change management is applied rigorously and deviations from the Contract and technical standards are recorded, controlled and authorized.
- Executing regular reviews and audits on critical activities including design, fabrication and installation to ensure compliance with the quality system.
- Ensure best practices are adopted, and improvements are implemented to the Project Management System.
- Ensure that Project Completion documentation (which includes records and certification) are properly planned, compiled, approved and maintained
- Ensure that all subcontractors and vendor/suppliers produce a comprehensive quality plan for each contract and purchase order, to be monitored against.
Inspection and Test Plans (ITPs) should be developed for each operation activities (e.g. fabrication, installation). These plans should detail the inspection and test activities or specific quality assurance activities, and highlight the responsibilities of all phases of the project. The ITPs should be documented and signed off by the respective parties.
Our Inspection and Test Plans shall outline all the systematic quality activities of internal organization, client and/or its representative on each work area. It shows the discrete inspection stages, and as a minimum shall describe for each stage the inspection process, acceptance criteria, type of hold point, witnesses and inspection records generated and assign responsibilities for the inspection.
A project audit schedule can be developed by us to cover all project activities and locations to verify against their adherence to execution plans and compliance with project systems, procedures, processes and contractual requirements. This is critical to identify non-conformances and program deficiencies, and to ensure that corrective and preventive actions are taken.
Findings and observations identified during the course of the audit are documented through the generation of audit reports and Corrective Action Requests (CARs). Status of any observations and CARs shall be monitored throughout the process until the agreed corrective and preventive actions are properly implemented and considered closed.
Any activity that does not conform to project requirements shall be identified and controlled to prevent its unintended consequence. A non-conformance procedure shall be prepared and implemented that addresses both management and technical non-conformances. The procedure should assign responsibility for the follow up of all non-conformances raised on the project to ensure that the necessary action is taken and NCRs are closed out in good time.
NCRs are used to document Non Conformity of activity, whilst CARs are used to document Non Conformity of a process or system. The non-conformities are documented and investigated to determine the root cause of the quality deficiency and to determine the acceptable resolution.
It is common to have a contractor interacts with another contractor under the same client, but without any formal agreement between the parties. For example, the installation contractor would need to interface with the fabrication contractor on the loadout, transportation and installation technical details, and both contractors only have agreement in place with their client but not each other. To ensure the interface issues are communicated to the relevant parties, we can assist our client to develop an interface management system so that all parties can synergize and cooperate to resolve and closeout any interface issue.
It is fundamental to generate and maintain a live project interface register that will be regularly updated and distributed to all interface parties and provide a systematic framework to identify, distribute, resolve, report and closeout the interface issues.
The interface management process can be structured as following
- Interface issues are identified by the project team (with project subcontractor and vendor). The interface issues are compiled into the interface register. The description shall be specific and details with necessary information and reference, and the required response party and due dates shall be provided.
- Once the interface issues are identified and included in the interface system, the action owner shall follow up and resolve the interface issues either by direct discussions, though interface meetings or by issuing technical queries or site queries. It is recommended to always involve or keep the client in the loop.
- Interface issues to be prioritized based on the criticality, potential impacts / risks and the due dates.
- Once the required actions of an interface issue are completed, assessment will be conducted to assess if the interface issue can be closed, or require further action.
- All correspondences such as minutes of meeting or formal documents generated in the interface process should be logged for closeout.
- All interface issues logged in the interface management system need to be controlled by an assigned interface coordinator. The interface issues can be coordinated either based on the status, or interface parties, or the potential impacts.