Who will do what in the

Purchase Contract

Engineering & Design Department

 Abbreviations
PC Purchase Contract

EDD Engineering & Design Department

PSD Projects Support Department

CPD Concerned Projects Department

T&C Testing & Commissioning

TC Technical Completion

PA-FA Performance Acceptance-Final Acceptance

Contract Proponent

During During

Procureme Implementati
nt on

EDD PSD
 PC
Purchase
PC Kick-off
Start Procurement PC Invoicing Order
Meeting
Placement

QA/QC Progress Project Detail Project Base Equipment

Requirement Reporting Design Phase Design Phase Design Stage

Equipment
Factory Release for Equipment Receipt
Replenish or
Inspection Shipment Delivery Inspection
Replacement

Technical
Equipment Commissionin Equipment
O&M Manuals Advisory
Energization g Installation
Services

Spare Parts
Training and Test Warranty PC Close-out End
Equipment
 EDD shall be responsible for
ED procurement of the PC in
PC Procurement
D coordination with Companys
concerned departments till
contract signing
PSD/CPD to receive a copy of the PC
PSD/CP
after signing
D

To clarify the contract, submit

Manufactu technical and commercial bid
rer proposals, comply with PTS and
contractual requirements and sign
the contract with the Company

Contractor No involvement
 ED No involvement
D
1. PSD to process the 10% advance
payment after PC signing
PC Invoicing

2. CPD to review and approve the

submitted invoice
PSD/CP 3. PSD to process other invoices as
D per the contract terms and
conditions once approved by
CPD
To submit invoices as per the
contract terms and conditions for
Manufactu Company review and approval (75%
rer upon delivery to site, 10% after
installation, 5% after T&C, 10% two
months after energization)

Contractor No involvement
 1. To initiate the purchase order
with the equipment
ED manufacturers upon receipt of
D notification from PSD
Purchase Order

2. To issue a written request for

manufacturing
Placement

1. CPD to notify PSD when the PO to

be issued by EDD
PSD/CP
2. PSD/CPD to receive a copy of the
D signed PO

1. To acknowledge receipt of the PO

2. To highlight any reservation within
Manufactu seven (7) days of the order receipt
rer 3. To accept PO and commence
equipment manufacturing upon
receipt of Companys request

Contractor No involvement
PC Kick-off Meeting To attend the PC kick-off meeting
ED to clarify the SOW, schedule and
D matters related to equipment
design stage
1. PSD to arrange the PC kick-off
meeting shortly after award of
PSD/CP the PC
D 2. CPD to attend the PC kick-off
meeting

To discuss all matters related to

Manufactu
carrying out his responsibilities and
rer
interface points

Contractor No involvement
 1. To provide a block of drawing
numbers
Equipment Design
ED
D 2. To review the equipment design
package
3. To attend the Equipment Design
Review
1. PSD to Meeting (EDRM)
distribute the equipment
design package for review
2. To arrange the equipment design
Stage

PSD/CP review meeting and have the MOM

D concurred by the company
representatives
3. CPD to attend the EDRM

1. To submit minimum two (2) sets of

Manufactu equipment design documents
rer within 4 weeks from PC kick-off
meeting
2. To prepare the MOM

Contractor No involvement
 1. To review the equipment base
ED design package
Project Base Design
D 2. To attend the base design review
meeting
1. To distribute the equipment design
package for review
2. To arrange the equipment design
CPD review meeting and have the MOM
concurred by the company
Phase

representatives
1. To submit minimum three (3) sets of
base design documents within 4
weeks after the project kick-off
Manufactu meeting
rer 2. To respond to comments from the
company on the base design and
to attend the base design review
meeting
To submit the base design package and
Contractor prepare minutes of base design review
meeting
 1. To review manufacturers point-
wise compliance statement
Project Detail Design
ED
D 2. To check and verify the final
detail design drawing

1. To stamp all approved drawings

CPD with Noted By stamp
2. To issue stamped drawings to the
Phase

contractor to prepare IFC drawings

1. To submit point-wise compliance

statement to company comments
2. To obtain approval for all detail
Manufactu
design drawings after
rer
incorporating all comments
3. To submit three (3) sets of all
interconnected drawings

To prepare IFC drawings after receipt

Contractor
of Noted By drawings from company
Progress Reporting No involvement
ED
D
1. CPD to review the report and
arrange any coordination meeting,
if found necessary, between
PSD/CP
company, manufacturer and
D contractor
2. PSD to receive a copy of the report

To submit equipment monthly

Manufactu
progress report to CPD with a copy to
rer
PSD in company approved format

To prepare the minutes of any meeting

Contractor found necessary by the company
 ED To review the I&TP
D
1. To send QA/QC program, I&TP,
type test reports and inspection
Requirement

agency for review

2. To forward a copy of the approved
CPD
QA/QC program and I&TP to
QA/QC

companys concerned
departments
1. To submit QA/QC program and
I&TP for company review and
approval
2. To contract with company
Manufactu
approved QA/QC services
rer
contractor
3. To furnish CPD a copy of the
contract with the approved
independent agency
Contractor No involvement
 ED To participate in equipment factory
Factory Inspection
D inspection
1. To invite concerned departments
to participate in factory inspection
CP 2. To participate in equipment factory
D inspection

1. To submit CV of inspectors from

the approved inspection agency
for company review and approval
Manufactu
2. To arrange travelling for company
rer
representative for factory
inspection as per the PTS
requirements

Contractor No involvement
 ED No involvement
D

To approve release for shipment

Release for

certificate if factory test reports are

Shipment

CPD/PS approved by companys concerned

D departments
1. To ensure that all material
requiring inspection are not
shipped without release for
Manufactu
shipment certificate
rer
2. To ship all equipment with
approved release for shipment
certificate immediately

Contractor No involvement
 ED No involvement
D

To issue necessary letters to the

CPD/PS manufacturer to facilitate equipment
Equipment

D clearance and delivery to the site

Delivery

1. To arrange insurance, shipment,

custom clearance, deliver and
unload the equipment on the
foundation at S/S site
Manufactu 2. To coordinate with CPD and
rer contractor for the delivery
schedule
3. To delay the shipment of the
equipment by maximum three
months if requested by the
To company
have the equipment foundation
Contractor and S/S building ready to receive
the equipment
Receipt Inspection EDD/P No involvement
SD
To conduct receipt inspection of
equipment after delivery at project
CP
site and during opening of equipment
D packing

1. To conduct receipt inspection of

equipment after delivery at project
site and during opening of
Manufactu
equipment packing
rer
2. To submit to CPD a document of
equipment hand-over to the
contractor
1. To conduct receipt inspection of
equipment after delivery at project
site and during opening of
Contractor equipment packing
2. To promptly report to CPD any
shipment and transportation
damage
 ED No involvement
Equipment Replenish or D 1. To take necessary action as per
the contract in case of equipment
damages
CPD/PS
2. To apply penalty, as per the
D
Replacement

contract, if the project is delayed

1. due to equipment
To assume damage
responsibility in case of
equipment damage during
shipment up to the S/S site or if
Manufactu part of equipment is lost
rer 2. To assume responsibility for failure
of equipment during T&C
3. To replenish or replace equipment
1. To assume responsibility in case of
as directed by company
equipment damage during
installation
2. To notify CPD of damage
Contractor occurrences
3. To coordinate with the
manufacturer to replenish
equipment in case he is
 EDD/PS No involvement
D
1. To review the installation schedule
and forward the same to
companys concerned
Installation
Equipment

departments
CP
2. To coordinate with the concerned
D departments for removal of the
impact recorders of the power
transformers

Manufactu To supervise equipment installation at

rer the S/S site

1. To ensure proper site conditions

prior to equipment installation
2. To coordinate with the
Contractor manufacturer and submit
equipment installation schedule to
CPD
 EDD/P No involvement
SD
Technical Advisory
1. To grant access permit to
manufacturers representative
during the supervision period
CP 2. To intimate companys concerned
Services

D departments of the installation

and manufacturers supervision
schedule
1. To provide complete site
installation and T&C procedures to
the contractor with a copy to CPD
Manufactu
one month before equipment
rer
shipment
2. To arrange supervisor as per
contractors schedule
To intimate manufacturer six (6)
weeks in advance the supervision
Contractor
schedule and the required date of
supervisor availability
 EDD/PS No involvement
D
1. To forward O&M manuals to
O&M Manuals

companys concerned
departments for review and
CP
approval
D 2. To ensure availability of O&M
manuals at project site during T&C
1. To submit six (6) sets of O&M
manuals to CPD for preliminary
review by company
Manufactu 2. To submit four (4) sets of revised
rer original manuals to CPD before the
TC date
3. To provide two (2) copies of
technical data manuals

Contractor No involvement
 EDD/PS No involvement
D
Commissioning
1. To review the T&C schedule
2. To coordinate with the concerned
departments for witnessing the
CP
T&C at the S/S site
D 3. To send site test reports for review
by the concerned departments

Manufactu To supervise equipment T&C at the

rer S/S site
1. To ensure proper site conditions
prior to equipment T&C
2. To coordinate with the
manufacturer and submit
Contractor equipment T&C schedule to CPD
3. To carry out T&C under
manufacturers supervision
4. To submit site test reports to CPD
for companys review
 ED No involvement
D
Energization

To inform the manufacturer to rectify

Equipment

CPD/PS any problem in the equipment after

D energization
1. To attend any operational problem
in the equipment during the
Manufactu warranty period
rer 2. To assign its representatives to the
S/S site to rectify equipment
operational problems
1. To inform CPD when facility is
ready for energization
Contractor 2. To inform CPD about any
operational problem after
equipment energization
 EDD/PS No involvement
D
1. To ensure the training program is
as per PTS
CP 2. To coordinate with the concerned
departments to send their
Training

D
nominees

1. To submit training program to CPD

2. To arrange factory training as per
the PTS after confirmation by
Manufactu company through a written notice
rer 3. To provide travelling requirements
for company personnel
4. To conduct site training as per PTS

Contractor No involvement
Spare Parts & Test EDD No involvement

To coordinate with the concerned

CPD/SP departments to hand-over the spare
D parts, special tools and test
Equipment

equipment
1. To provide and deliver to company
warehouse spare parts and new
special tools or test equipment
Manufactu after confirmation by company
rer through a written notice
2. To arrange insurance coverage of
all spare parts, special tools and
test equipment
To provide general and site testing
Contractor equipment for installation and T&C
 ED No involvement
D
1. To inform the manufacturer to
repair any defect that occurs
during the warranty period
CPD/PS 2. To have others perform some or all
Warranty

of the corrective work at

D
manufacturers expense in case he
refuses to undertake the
1. To provide to CPD equipment
corrective work
warranty certificate for a period of
18 months from the date of
delivery or 12 months from
Manufactu equipment TC whichever comes
rer first
2. To comply with pre-qualification
warranty requirements
3. To repair any defect in the
warranty period
Contractor No involvement
 ED No involvement
D

1. CPD to issue partial TCC to the

PC Close-out

manufacturers with a copy to PSD

2. PSD to issue PAC and FAC upon
PSD/CP receipt of confirmation from CPD
D that all contractual requirements
have been fulfilled by the
manufacturer

To comply with TC, PA and FA

Manufactu
requirements as per the contract
rer
terms and conditions

Contractor No involvement
Thank you