1.0 PURPOSE
The purpose of this procedure includes for:
- Receiving, reviewing and processing of business enquiries and contracts / orders from customers.
- Legal and other applicable requirements
- Requirements not stated by the customer but considered necessary by the XXX for the provision of the product.
2.0 SCOPE
This procedure is applicable to all the following systems and standards
- ISO 29001:2020/ API Spec Q1, 9th edition
- API Spec ……
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Applies to all process which have an influence on product quality
3.0 RESPONSIBILITY
- Business Development Manager
- Commercial Officer
- Management representative
- Quality Systems Manager
- All concerned process heads
4.0 INPUTS
Products & services, Customer enquiries & requirements, Statutory and Regulatory Requirements, International standard.
5.0 RESOURCES
Competent Manpower, Computers, Printer & Internet connection, Stationaries, Customer standards & specifications, XXX Procedures
6.0 DESCRIPTION
The main concerns of the Contract Review are:
- Determining customer’s and product requirement which includes delivery as well as after sales services.
- Ensuring correct understanding of all aspects of RFQ
- Submitting a detailed quotation
- Doing Pre-Review and Post-Review
- Ensuring transfer of correct specification to the Project owner & Administration for meeting customer’s and statutory requirements
- Following up the fulfillment of Contract
- Archiving the Original Document
- Preserving evidence of Contract fulfillment.
7.0 PROCEDURE
7.1 CUSTOMER ENQUIRY
- All customer enquiries to XXX are logged in to the Enquiry register in commercial department.
- Upon receipt of enquiry, the enquiries are categorised based on the type and are as follows:
- Enquiry Job (EJ) – Enquiry for Machine shop services/work
- Enquiry Contracts (EC) – Enquiry for Contracts
- Enquiry Supply (ES) – Enquiry product sale
- Each enquiry has a unique number which identify the type, year and the serial number. E.g. EJ/23/005 Where-EJ stands for the type of enquiry (Enquiry Job), 17 is for year 2023 and 005 is the serial number in that category.
- After allocating the enquiry number the Commercial Officer or his designee registers the description of enquiry, client, contact person and the closing date in the log book and fill the enquiry form with necessary information and open an enquiry file.
- Based on the type of enquiry the Commercial Officer forward the enquiry to the concern personnel for estimation.
- Based on the complexity of enquiry the person responsible for estimation or the commercial officer himself may call for an enquiry review meeting in order to verify:
- Is the enquiry within XXX scope?
- Does XXX have enough resources to manage the order/contract?
- Does XXX have suitable infrastructure to carry out the job?
- Is the time permitted by the client is sufficient? If not is it possible to get any extension?
- Does it require any specialist, vendor or sub-contractor to perform the activity and are they lined?
- Requirement of Bid-Bond
- Person responsible for estimation
- Is there any pre-tender meeting or site visit and who are attending?
- When enquiry received verbally, the personnel received the enquiry fill the verbal enquiry form and forwarded to the commercial department for the necessary action.
- The Commercial Officer is responsible for submitting the details of the enquiry to planning and estimation department.
- Based on the details bid calculation is prepared and accordingly quotation is prepared, reviewed and sent to the client.
7.2 QUOTATION FOLLOW-UP
- In case of quotation submitted to the customers are followed constantly by the sales team, the personnel received the initial enquiry, the responsible manager or the Commercial Officer. The Commercial Officer coordinate with others and if required he should contact the customer by himself.
- The commercial officer provided with the status of quotation or he may contact directly the client/customer. All lost tender/bid, the enquiry file closed and may send to the lost tender/order documents or may retain by the estimation engineer of the concern manager for reference purpose.
7.3 CONTRACT REVIEW
- Upon receipt of the customer order the same is recorded in the Job Register with an internal order number, which allocated according to the type of order JO & SO.
- JO – Machine shop services/job order/Contract Order
- SO – Product Sale Order/Supply Order
- The Job Register have the following information:
- Enquiry No (XXX)
- Order No (XXX)
- Customer Name
- Description of order
- Order Value
- Customer PO reference
- Commencement Date
- Completion Date
- On receipt of a Customer’s Order, the order and the quotation reviewed simultaneously and any changes to the customer order with respect to the original quotation resolved with the Customer.
- It is the responsibility of the Commercial officer with the concern manager, who reviews the requirements of both the Quotation and the Order in line with this procedure.
- Contract review form XXX/COM/02 is the document for contract review and all requirements including legal and other requirements. Contract Review checklist verified with each process owner for feasibility and review minutes are noted down to summit to Chairman
- In case of verbal order the concern manager is responsible to document the customer requirement in order to avoid any ambiguities in the later stage.
- The work in progress monitored regularly and discussed in the weekly meeting.
- Depends on the requirements the concern manager may call for additional progress meeting in order to review the status of the project.
- XXX reviews the requirements related to provision of products, this review prior to the XXX’s commitment to deliver product to customer and ensures that requirements are identified and documented, requirements differing from previously identified and solved.
7.4 INVOICING
- Correctly and timely invoicing is important for XXX’ operation in order to maintain the cash flow in a planned condition. In this respect the Machine shop Manager, Operations Engineer who responsible for the contract/order raise the invoice request and forward to the commercial department.
- The commercial officer then verifies the same with the contract specification and updates his record on the contract/order file. Upon completion of his/her review and updating the records in the order file and the same forwarded to the Machine Shop Manager for review and signature and the same forwarded to the finance department.
- The finance department prepares the invoice based on the invoice request and then submit to the client/customer.
- All invoices submitted to the customer have a received signature on the office copy. It is not mandatory for payment against delivery.
- The finance department do the follow up for all invoices submitted by XXX.
- If there is no written order from the customer is available, the invoice request may prepare based on the verbal agreement. In such case it is the responsibility of the concern manager to do the necessary follow up for invoice.
7.5 AMENDMENT TO CONTRACT
- In case of any change in the scope of work or revision in quantity from the original contract, treated as amendment to contract and discussed and agreed by both parties.
- Amendments to a contract treated in the same way as any enquiry; however it may incorporate in the same order/contract. In such case a letter of amendment signed by both the customer and XXX attached to the original contract/order.
- The letter of amendment prepared/ received with all changes with respect to the original contract that might take place prior to the execution of such changes.
- In case of any engineering or technical changes received from the customer or the concern personnel, commercial officer forward the same to the Machine shop Manager and he then informs the Planning Engineer to update the Production & Quality Plan. Then he sends the updated plan to Machine shop Supervisor.
- In case the project management is directly handling such amendment, the record of amendment informed to the commercial or project-planning department.
- Any amendment affecting the contract value informed finance department.
- Based on the relationship with customer the amendments may accept verbally to continue the work but it is the responsibility of the concern manager to receive such change request/amendment from the customer accordingly.
- Where contract requirements are changed, XXX ensures that relevant documents are amended and that relevant personnel are made aware of the changed requirements.
Once the job is completed, Documentation Checklist shall be used to ensure that adequate records are available.
7.6 OUTPUTS
Orders received from the customers along with necessary inputs, Drawings or Specifications from customer, Order acceptance, Contract review, Customer feedback, correspondence from customer.
8.0 KEY PERFORMANCE INDICATORS
- Enquiry to order conversion = 70%
- Increasing customer base
- Effectiveness of contract review process
- Effectiveness in fulfilling Statutory and Regulatory Requirements
9.0 ASSOCIATED DOCUMENTS & RECORDS
| DESCRIPTION | FORMAT NUMBER | RESPONSIBILITY |
| Master List of Customers | XXX / COM / D01 | Commercial officer |
| Enquiry Register | XXX / COM / 01 | Commercial officer |
| Contract Review | XXX / COM / 02 | Commercial officer |
| Verbal Enquiry Form | XXX / COM / 03 | Commercial officer |
| Quotation | XXX / COM / 08 | Commercial officer |
| Documentation Checklists | XXX / COM / 11 | Commercial officer |
