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:

______Operating Procedure No: … Issue: … Dated: ……………… Page 1 of 9 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;

______Operating Procedure No: … Issue: … Dated: ……………… Page 2 of 9 (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

______Operating Procedure No: … Issue: … Dated: ……………… Page 3 of 9 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’.

______Operating Procedure No: … Issue: … Dated: ……………… Page 4 of 9 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.

______Operating Procedure No: … Issue: … Dated: ……………… Page 5 of 9 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

______Operating Procedure No: … Issue: … Dated: ……………… Page 6 of 9 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

______Operating Procedure No: … Issue: … Dated: ……………… Page 7 of 9 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

______Operating Procedure No: … Issue: … Dated: ……………… Page 8 of 9 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. ”

______Operating Procedure No: … Issue: … Dated: ……………… Page 9 of 9