POLICY: Vendor Purchase Order Agreement

PURPOSE: To establish a uniform procedure for the preparation of the purchasing agreements with vendors that supply only material to our projects.

RESPONSIBILITY: Project Manager

PROCEDURE:

1. The Project Manager will prepare the Purchase Order using the Purchase Order format that is available on Procore. The computer format is available on the company server and can also be accessed on the Policies and Procedures Manual on the Carter & Carter website.

2. The Project Manager will track the Purchase Order number from the Buyout Log maintained in Procore. The Project Manager will maintain the log.

3. After the Purchase Order is complete, the Project Manager will complete the “Analysis of Purchase” for back up being careful to accurately analyze the amount of the purchase against the estimate.

4. Once the Purchase Order and the Analysis of Purchase is completed, the Project Manager should print copies as follows:

  • Vendor Copy
  • Corporate Office Copy
  • Jobsite Office Copy
  • Accounting Copy

5. The Analysis of Purchase should be attached to the “Accounting” copy.

6. The Project Manager should produce the Purchase Order to allow the drawings and specifications to dictate the scope of work and only include items under “Specifically Includes” or “Specifically Excludes” to provide clarification when conflicts or misunderstandings could exist. The Project Manager should include the Superintendent in the review of the Purchase Order when possible.

7. The Project Manager should be sure that any items specifically excluded from the Purchase Order terms are covered in other areas of the estimate or with other Vendors.

8.The Project Manager should aggressively negotiate discounts with vendors. Discount information should be included in the Purchase Order whenever possible.

9. The Purchase Order should be routed to the Vendor for execution. The accounting copy and handwritten back up is to be retained by the Construction Coordinator until the executed copy is received from the Vendor.

10. Once the executed copy is received, it should be checked by the Construction Coordinator and the Project Manager for stray marks or revisions made to the agreement by the Vendor. Any revisions should be resolved as indicated by the Project Manager’s initials on each stray mark prior to giving the document to the Senior Project Manager. Any revisions related to the standard terms of the Purchase Order must be approved by the Senior Project Manager.

11. A complete package including all copies of the Purchase Order with the Analysis of Purchase should be routed to the Senior Project Manager for approval. All signature blocks, revisions, and the Analysis of Purchase should have the initials of the Project Manager and Senior Project Manager prior to submission to the President.

12. Once the document is completely executed, the Construction Coordinator will distribute as indicated on the Purchase Order. The Analysis of Purchase will be retained with the corporate office Purchase Order.

13. The Purchase Order will not be entered into accounting until the document is fully executed. No payments can be made to the Vendor until the agreement is fully executed and entered into accounting.

Feedback

Was this helpful?

Yes No
You indicated this topic was not helpful to you ...
Could you please leave a comment telling us why? Thank you!
Thanks for your feedback.

Post your comment on this topic.

Post Comment