TEMPLATE LIMITED
OPERATING PROCEDURE NO 1.
Procedure for review and approval of offers, review and
acceptance of contracts and any subsequent amendments
Authorisation and Amendment Record:
Issue No.
Date of Issue
Prepared by:
Authorised by:
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The procedure for review and approval of offers, review and
acceptance of contracts and any subsequent amendments
1.
Purpose and scope
The purpose and scope of this procedure is to ensure that:
(a)
…….. or a member of its staff, does not make an offer, or accept a contract or
order, to carry out work or perform services that are outside its capability to
deliver;
(b)
In both cases, before submission of an offer, and also on receipt of a contract, it is
carefully reviewed to ensure:
(a)
the CONTRACT is adequately defined;
(b)
the REQUIREMENTS are adequately defined and the appropriate
version of any documents, specifications or drawings is held and has also
been reviewed;
(c)
the specification is complete and there are no additional items we think
should be included, or necessary for successful performance of the
product or service. If we are in any doubt at all, we will always contact
the client to ensure the order will fully satisfy their needs;
(d)
there are no unresolved discrepancies or differences between any offer
made by ……. and the contract now placed;
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(e)
that ……… has the capability to carry out the work or perform the
service or have ensured that we have approved suppliers or
subcontractors for the components, subassemblies or service items
outside …………. capability;
(f)
that the materials are held in stock or can be sourced in time from
approved suppliers and that this material is one that ………. considers
safe to store and use;
(g)
that ……… wish to carry out the work for the fee offered and under the
agreed terms and conditions;
(h)
that the product or service being provided meets all statutory and legal
requirements of the destination country. Also any statutory and legal
requirements for packaging, delivery and custom requirements are met;
(i)
that the proposal/contract is reviewed carefully, to check if there are any
material or services being provided by the client as ‘free-issue’, that need
special arrangements for control;
(j)
that the proposal/contract is reviewed, to check if there is a potential
requirement of the client demanding that they can inspect any bought-in
material or services at source which requirement will be clearly noted in
the contract file, to then be addressed as a clause on appropriate
………… plc purchase orders.
2.
Responsibility
The only person within ………. who can review and made an offer or accept a contract of
a £1,000 or above, is the Managing Director. The ……………….. Manager can carry
out a review for the repeat of a successful job or below this figure, in the absence of the
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Managing Director, but must obtain the agreement and the additional signature of the
Financial Manager or ………… .
3.
Implementation
3.1
Making an offer or submission of a tender
To keep track of all invitations, offers and contracts ……. maintain an ‘Enquiry
and Contract Book’. This record covers two pages of an A4 record book, the
headings within this book are shown at Form …….(OR Annex A of this
procedure).
It is the policy of ……… that all offers will be made in writing by formal letter or
by fax. The author of the letter may use Form …….(OR Annex B) as an
additional guide or checklist to ensure all points are covered (OR ……..jobs are
quite complicated hence an estimating sheet has been developed to plan and cost
each potential job see Annex …). Such an offer, letter or fax will be reviewed by
the Managing Director, against the points in paragraph 1(b) and authorised by
signing and dating the letter and also the ‘Enquiry and Contract Book’ (OR form
ref …………..) (OR unfortunately the type of market that ……… is engaged in
dictates that verbal tenders to carry out work must be provided. In these cases the
offer will be documented and formalised within ……….. by entering the details
and signing in the ‘Enquiry and Contract Book’).
When an offer/contract is reviewed by the ……….Manager with the Financial
Manager (OR ………….. manager ) (see para. 2), only one will sign the offer
document, but both will sign the ‘Enquiry and Contract Book’.
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3.2
Accepting a Contract
No work will commence or material be ordered until a contract (including,
acceptance of a ………. offer, instruction to proceed, etc.) has been formally
reviewed and authorised by signing and dating the ‘Enquiry and Contract Book’.
These are usually done personally by the Managing Director but in certain
circumstances can be carried out by others (see para. 2 above).
ALL small value orders below £1,000 will have the Contract Review carried out
imply by checking against the items listed in 1(b) and recorded in the ‘Enquiry
and Contract Book’. For orders of £1,000 or greater, a formal contract review
will also be carried out and recorded on the form…….(OR at Annex B of this
procedure).
A suitable letter of acknowledgement (or declining letter, if appropriate) is sent to
accept a written contract and a confirmation fax is sent to all verbal contracts.
(OR as standard practice all accepted contracts are acknowledged on form
……… (OR Annex D) with photocopy retained in the file.) (OR our clients do
not want to place written orders or accept formal acknowledgements. Whilst
………… plc find written orders desirable, it is a fact of our marketplace, that we
must accept verbal orders and acknowledgements or our clients will go
elsewhere. Hence, orders are formally acknowledged or recorded within ………
via the ‘Enquiry and Contract Book’).
Following a successful contract review a contract file (see Operating Procedure
…., Document Control) is opened and formal work instructions (OR job cards
……………….. ) are issued.
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3.3
‘Free-issue’ material
……….. ensure that the work instructions carry any requirements to control
material supplied as ‘free-issue’.
It is also understood that customer property can include intellectual property such
as designs, drawings, commercial-in-confidence information, etc. Such customer
property will remain ‘commercial-in-confidence’, it will not be photocopied for
supply to others, or used by ……… on our own products.
If we have visitors to ……….. due care will be taken to ensure that the visitors do
not have sight of their competitor’s work or designs.
3.4
Verification by client, of material at source
………. ensure that any requirements of the client to visit ……… suppliers is
documented in the instructions and included on the appropriate Purchase Orders.
3.5
Amendments to contracts
In order to prevent disputes at a later date the policy of ……….. is only to accept
authorised (signed) amendments to contracts in writing (letter, memo or fax).
These amendments are also reviewed against the items shown in para 1(b).
If the amendment to contract is acceptable to ………., the client is advised in
writing and also agreement is sought for any additional fee.
Before the
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amendment to contract is actioned, confirmation must be received of any extra
payment.
Amendments to contract are reviewed and actioned as follows:
(i)
in the ‘Enquiry and Contract Book’ a neat line is drawn through the
existing record of ‘hear and serial number’, only;
(ii)
in the next space available write the same year and serial number with
added amendments reference………………………..
Complete the appropriate details across the ‘Enquiry and Contract Book’, to
ensure the amendment is reviewed, accepted and recorded.
Even for large contracts it would not normally be necessary for amendments, to
complete Form ……….. (OR Annex B) for amendments but it may be
completed, if appropriate.
Following completion of the above review the amendments to the formal work
instructions are issued, by withdrawing and amending the job card (OR
……………. )
4.
Factored work, or work bought-in and supplied on
It would not normally be the policy of …………………. plc to accept a contract and
then subcontract the WHOLE of the job to another organisation.
If …………..plc were faced with this situation we would attempt to find another
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company with a valid accredited certificate for ISO9001:2000 covering the scope of work
required. If eventually the whole job was placed on a non ISO9001 registered company,
the client would be advised that:
“ The …………., subject of order ………. , were (OR will be ) manufactured or
supplied outside the scope of our ISO 9001:2000 registered system”
( OR In order to complete ………….plc’s product range it is necessary to buy-in
complete, some of the smaller models ( OR ………. models ) and to sell them on as
finished items. Every attempt is to procure these from a firm with a valid accredited
registration to ISO 9001:2000 for the products concerned.
These items are strictly controlled to ensure they are the same grade or standard as the
…….….. plc products. To make clear and to accommodate this situation, ……….. plc’s
ISO 9001:2000 scope of registration includes “ stockholding .”
If a client seeks confirmation of the source of these items we will automatically advise
that they are not manufactured by ……………….. plc and whether or not they are from a
Quality Assured source).
5.
Recording minutes of meetings on site visits
In …….. type of business some information can only be obtained by site visits and/or
given at meetings with the client. It is vital that these be formally recorded, reviewed and
actioned where necessary. These visits and meetings (including meets with the client at
……..) will be recorded on the form ……(OR Annex C to this procedure). Alternatively,
the client or …….. may provide formal minutes of the meeting. These will be reviewed
by the appropriate officer of ………. The minutes will be signed and dated by the
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reviewer with notes and actions recorded in manuscript in permanent ink on the minutes,
if appropriate.
On take-over of construction sites (OR Ground maintenance contractors,
, OR letting of ………..plc’s property or equipment, OR ……………) , it may be
necessary or appropriate to also take photographic or video records. Within these records
it will be noted . “ Where/what it is, date taken, taken by who ……, project or contract
reference. ”
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