WORK INSTRUCTIONS MANUAL

Date of Implementation: 07 June 2019 Issue Status: 3

Authorised by: QAM Approved by: President
Title: PURCHASING PROCEDURES Page No.: 1

WI 4.2
PURCHASING PROCEDURES

4.2. PURPOSE

GREEN ASIA CONSTRUCTION AND DEVELOPMENT

CORPORATION purchase varying amounts of products from a
number of Supplier accredited by the company. To ensure that
purchased products conform to the company’s specified purchase
requirements.

4.2.1 SCOPE

a. This Item covers:

 Purchasing Information and Canvassing

 Evaluation of Supplier
 Purchase Request Prior to Any Commitment

 Estimated Purchase Request

 Purchase Orders
 Receiving Reports
 Urgent Purchase

4.2.2 RESPONSIBILITY

The President/Executive Vice President (EVP) / Senior Vice

President (SVP) and COO / Vice President for Finance assisted by
the Purchasing Officer are responsible for the proper
implementation, monitoring and documentation of this procedure.

The GREEN ASIA CONSTRUCTION Property Office supply

is stocked with the most commonly used office supplies. NOTE:
The Property Office was established for "everyday use" and carries
a large number of individual items, but due to space limitations it
does have limited stock level. If your need is for a large quantity of
an item(s) an individual order should be placed directly with the
appropriate supplier.

4.2.3 PROCEDURE

A. Purchasing Information and Canvassing

The Purchasing Officer conducts three (3) canvasses to

prospective Suppliers concerning procurement of product/services
required by GREEN ASIA CONSTRUCTION AND DEVELOPMENT
CORPORATION
 WORK INSTRUCTIONS MANUAL
Date of Implementation: 07 June 2019 Issue Status: 3
Authorised by: QAM Approved by: President
Title: PURCHASING PROCEDURES Page No.: 2

In order to make sure that purchased product meets the exact

requirements of GREEN ASIA CONSTRUCTION, the Purchasing
Officer checks and ensures the purchasing information is correct
before ordering, if unsure the Purchase Order is presented to the
President / EVP / SVP / Vice President for Finance for approval.

Prospective Suppliers requires to submit company profile, valid

government issued document/permits and other related information
required by the Purchasing Office and Top Management.

The Purchasing Officer may also consider approval requirements

for purchased product and requirements for qualification of
personnel and quality requirements. for servicing/sub-contractors.

The Purchasing Officer checks the adequacy of specified

requirements prior to release to Suppliers.

All purchases are made on Purchase Orders Form.

B. Evaluation of Suppliers

The Concerned Office/Dept. Heads, pre-evaluates potential

Suppliers together with the Purchasing Officer and submit
recommendations for their accreditation to the SVP and VP for
Administration/ Vice President for Finance for approval of the
President / Executive Vice President (EVP).

Suppliers of critical materials and services are probed of their

historical capability, based on adequate and recent delivery
performance and recommendation of Finance Head.

Suppliers of non-critical items, by serving actual delivered supplies,

check, verified to confirm reliability.

Suppliers for services are interviewed by the Concerned Dept.

Heads together with the Purchasing Officer, who
endorses/recommends for approval of the President / EVP / SVP
for Contract signing.

C. Purchase Request Prior to Any Commitment

Accountability is a must; documentation must be approved by the

Purchasing Office and the Vice President for Finance prior to any
commitment that would result in the expenditure of funds.
Individuals should use caution when researching or otherwise
inquiring about services or products with any supplier/vendor. A
simple conversation can sometimes be easily interpreted by a
supplier/vendor/contractor as an obligation by the company for the
product or service.
 WORK INSTRUCTIONS MANUAL
Date of Implementation: 07 June 2019 Issue Status: 3
Authorised by: QAM Approved by: President
Title: PURCHASING PROCEDURES Page No.: 3

Once a request has obtained proper approvals and is received in

the Purchasing Office, it will be processed. An approved purchase
order consists of an assigned number by the company purchasing
official along with their signature. No purchases are to be made
without an approved, signed purchase order.

No purchase orders can be processed with a deficit budget

amount. . All budget issues must be reviewed and corrected in
order for purchases to be made. Purchasing Officer will not
override a budget without approval from the Vice President for
Finance or the budget accounting representative.

D. Estimated Purchase Request

On some occasions a requirement cannot be truly defined and the

total cost cannot be determined at the initial date of need. In these
type situations a Purchase Request with an estimated peso amount
should be processed to ensure that all proper laws, regulations or
procedures are followed and funds reserved to pay for the
obligation. When the actual peso amount of the need is determined
a change can be made to the original estimate. These situations
are rare but must be addressed prior to the beginning of an
obligation.

E. Purchase Orders

Examples of purchases include Construction materials and supplies

and printing services.

a. Orders are placed by telefax, e-mail or personal visit.

b. Purchase Order instructions are properly documented as

references to assure that materials or services meet
GREEN ASIA CONSTRUCTION specific requirements.

c. The person responsible for making the actual purchase is

identified by name, position and department in the
Purchase Order.

d. Purchasing procedures may vary depending on the product

or service and frequency of usage:

Equipment maintenance services are provided by the

Suppliers of the equipment, while Insurance Services are
renewed, subject to review of replacement values, made
by the same companies with whom GREEN ASIA
CONSTRUCTION has/had satisfactory working
relationship for many years.
 WORK INSTRUCTIONS MANUAL
Date of Implementation: 07 June 2019 Issue Status: 3
Authorised by: QAM Approved by: President
Title: PURCHASING PROCEDURES Page No.: 4

If it becomes necessary to cancel a purchase order, wholly

or in part, the requisitioner should contact the Purchasing
Office to determine if the order can be cancelled.

After determination is made that the order can be

cancelled, the requisitioner shall come to the Purchasing
Office and denote the reason on the receiving report copy.

e. Purchase orders will not be processed when a proposed

expenditure results budget deficit. A "Request for Budget
or Budget Adjustment" form must be submitted through
approval channels and the Accounting office. Purchase
orders can be re-entered and processed after the budget
deficit or changes have been made. If there are questions
or concerns about a purchase order that require it to be
rejected, this can be done by any approval or in
purchasing.
f. The general rule for payment (prepayments) of
commodities or services is to pay for them only after the
receipt of such. In some unique situations pre-payments
may be required for such items as postage, government
documents, association dues, registration fees,
subscriptions, etc.

F. Receiving Reports

When a Purchase Order is issued, the requesting department will

receive a copy of the Purchase order. That copy should be used as
a checklist when the items are received. The complete the bottom
of the form in the appropriate location to sign and date the copy
designating that it is complete and is approved for payment and
forward to Accounts Payable. Any packing slips or invoices that are
received should immediately be forwarded to Accounts Payable. It
is very important that Accounts Payable receive timely and accurate
receiving reports since invoices cannot be processed for payment
without these receiving documents. The person preparing the
receiving report should inspect the merchandise and ensure that
quantities are correct as well. A packing slip, invoice or receiving
report must be signed and dated marked received and forwarded to
the Accounts Payable office. Please mark any exceptions such as
variance in quantity or wrong merchandise before forwarding to the
Accounts Payable Office.

Partial receiving documents can be received by checking partial

receipt, documenting what was actually received on the form. Then
a copy of the form should be sent to Accounts Payable with any
receiving information. When final items are received, the sheet
should be noted as final and forwarded to Accounts Payable.

G. Urgent Purchase
 WORK INSTRUCTIONS MANUAL
Date of Implementation: 07 June 2019 Issue Status: 3
Authorised by: QAM Approved by: President
Title: PURCHASING PROCEDURES Page No.: 5

Normal purchasing procedures must be followed at all times.

Planning for all purchases should be made by the respective
office/Department Heads and should allow for normal purchasing
lead time. In cases, however, when there is an urgent, on-the-spot
need for the purchase of goods and services and normal
purchasing methods may seem impractical, the purchase of goods
and services through regular canvass or sealed bidding may be
waived to give way to an emergency purchase upon the approval of
the EVP or the President.

4.2.4 APPENDICES:

Appendix A: Supplier’s Pre-Evaluation Form

Form Ref.: QF-PO-01-02-02June18.

Appendix B: Purchase Order

Form Ref.: QF-PO-02-01-01May15

Appendix C: Transmittal Sheet

Form Ref.: QF-PO-03-01-11May15

Appendix D: Requisition Slip

Form Ref.: QF-PO-04-01-01May15

Appendix E: Warehouse Receiving Report

Form Ref.: QF-PO-05-01-01May15

Appendix F: List of Approved Supplier

Form Ref.: QF-PO-06-02-07June19

Appendix G: Application for Accreditation of Supplier

Form Ref.: QF-PO-07-01-02June18

Appendix H: Supplier’s Pre-Evaluation Form

Form Ref.: QF-PO-08-01-02June18
 WORK INSTRUCTIONS MANUAL
Date of Implementation: 07 June 2019 Issue Status: 3
Authorised by: QAM Approved by: President
Title: PURCHASING PROCEDURES Page No.: 6

APPENDIX A
SUPPLIER’S PRE-EVALUATION FORM
NATURE OF SUPPLIES AND SERVICES:

Training and Consulting Services Textbooks and reference Materials

Printing and Binding Services Class Room Facilities and Equipment/Office furniture and
Equipment
Equipment/Technical Service Supplies and Stationary
Others _____________________________________________
SUPPLIER/PROVIDER DETAILS
NAME:

ADDRESS:

TELEPHONE NO.: FAX NO.:

NAME OF CONTACT PERSON: DESIGNATION:

BUSINESS REGISTRATION NO.: PERMIT NO.:

ISO CERTIFICATION NO.: ISSUED BY:

EVALUATION DETAILS

METHOD USED FOR EVALUATION (check all applicable criteria):

Suppliers Office/Shop/Facilities visit

Established Reputation:
No. of years in service to the Company : _____
No. of years in existence in the industry: _____
Recommended and appointed by the President/VP’s/Board of Directors
Sole Service provider
ISO Certified company – Remarks : _______________________________
Application
Company Proposal

EVALUATION CRITERIA
100% is the highest, passing is 75% 0%-100%
Product/service quality
Consistency and reliability of service
Promptness of response to enquiries
Competitive use of price/fees
Efficiency of service
Competency of product/service
Personnel relation to customer
Timeliness of service
Conformity with specified requirement/specifications
EVALUATION RESULT
 WORK INSTRUCTIONS MANUAL
Date of Implementation: 07 June 2019 Issue Status: 3
Authorised by: QAM Approved by: President
Title: PURCHASING PROCEDURES Page No.: 7

Accepted (75%-100%) Pending (50%-74%) Decline (49% & below)

REMARKS

EVALUATED BY: REVIEWED BY:

RECOMMENDING APPROVAL: APPROVED BY:

DESIGNATION:

QF-PO-01-02-02JUNE18
APPENDIX B
PURCHASE ORDER

PURCHASE ORDER
To :__________________________________________
Date:_______________________________
___________________________________________

SIR :
Please deliver the following supplies / materials / equipments listed below at
_______________________
_____________________________within ____________________________upon receit
of this order:

R.S. No. _______________________________

Item No.: QTY. Articles and Description Unit Price

Total

Terms / Mode of Payment

____________________________________________________________

Recommended By: Approved By: Conforme:

_________________________ __________________ ___________________

QF-PO-02-01-01May15
 WORK INSTRUCTIONS MANUAL
Date of Implementation: 07 June 2019 Issue Status: 3
Authorised by: QAM Approved by: President
Title: PURCHASING PROCEDURES Page No.: 8

APPENDIX C
TRANSMITTAL SHEET
No. _________
Date: _____________
Attention : _________________________
Department : _________________________
Subject _________________________

WE TRANSMIT HEREWITH THE FOLLOWING:

QUANTITY DESCRIPTION

REMARKS

PREPARED BY: CHECKED BY: RECEIVED BY:

 WORK INSTRUCTIONS MANUAL
Date of Implementation: 07 June 2019 Issue Status: 3
Authorised by: QAM Approved by: President
Title: PURCHASING PROCEDURES Page No.: 9

___________________ ____________________ ______________________

DATE: ___________ DATE:_____________ DATE:_______________

QF-PO-03-01-01May15

APPENDIX D

REQUISITION SLIP
Date of Request : __________________________ NO: __________________
Department : ____________________________ Location: ______________

Request for : (please check)

________Plant ________Construction

________Admin ________Canteen

Item No. Qty Unit Item (s) / Description Remarks

Requested by: Noted by: Approved by:

 WORK INSTRUCTIONS MANUAL
Date of Implementation: 07 June 2019 Issue Status: 3
Authorised by: QAM Approved by: President
Title: PURCHASING PROCEDURES Page No.: 10

______________________ ___________________ _____________________

QF-PO-04-01-01May15

APPENDIX E
WAREHOUSE RECEIVING REPORT
NO. ________________

Name of Supplier: ___________________________________ Date : ___________

Reference PO No. : __________ Supplier’s Delivery Receipt/ Sales Invoice No. ________

Item No. Item Description QTY Unit Total Remarks

Price

___________________________ ___________________________
Prepared by Received by

QF-PO-05-01-01May15
 WORK INSTRUCTIONS MANUAL
Date of Implementation: 07 June 2019 Issue Status: 3
Authorised by: QAM Approved by: President
Title: PURCHASING PROCEDURES Page No.: 11

APPENDIX F
LIST OF APPROVED SUPPLIERS

SUPPLIER ADDRESS SERVICE CONTACT# CONTACT TERMS

NAME RENDERED PERSON

`
 WORK INSTRUCTIONS MANUAL
Date of Implementation: 07 June 2019 Issue Status: 3
Authorised by: QAM Approved by: President
Title: PURCHASING PROCEDURES Page No.: 12

Prepared By : Approved By:

____________________ ______________________
Purchasing Officer

QF-PO-06-02-07June19

APPENDIX G
APPLICATION FOR ACCREDITATION OF SUPPLIER
 WORK INSTRUCTIONS MANUAL
Date of Implementation: 07 June 2019 Issue Status: 3
Authorised by: QAM Approved by: President
Title: PURCHASING PROCEDURES Page No.: 13

QF-PO-07-01-02JUNE18
 WORK INSTRUCTIONS MANUAL
Date of Implementation: 07 June 2019 Issue Status: 3
Authorised by: QAM Approved by: President
Title: PURCHASING PROCEDURES Page No.: 14

QF-PO-07-01-02JUNE18

APPENDIX H
SUPPLIER’S RE-EVALUATION FORM
NATURE OF SUPPLIES AND SERVICES:

Training and Consulting Services Textbooks and reference Materials

Printing and Binding Services Class Room Facilities and Equipment/Office furniture and
Equipment
Equipment/Technical Service Supplies and Stationary
Others _____________________________________________
SUPPLIER/PROVIDER DETAILS
NAME:

ADDRESS:

TELEPHONE NO.: FAX NO.:

NAME OF CONTACT PERSON: DESIGNATION:

BUSINESS REGISTRATION NO.: PERMIT NO.:

ISO CERTIFICATION NO.: ISSUED BY:

EVALUATION DETAILS
METHOD USED FOR EVALUATION (check all applicable criteria):

Suppliers Office/Shop/Facilities visit

Established Reputation:
No. of years in service to the Company : _____
No. of years in existence in the industry: _____
Recommended and appointed by the President/VP’s/Board of Directors
Sole Service provider
ISO Certified company – Remarks : _______________________________
Application
Company Proposal

EVALUATION CRITERIA
100% is the highest, passing is 75% 0%-100%
Product/service quality
Consistency and reliability of service
Promptness of response to enquiries
Competitive use of price/fees
Efficiency of service
Competency of product/service
Personnel relation to customer
 WORK INSTRUCTIONS MANUAL
Date of Implementation: 07 June 2019 Issue Status: 3
Authorised by: QAM Approved by: President
Title: PURCHASING PROCEDURES Page No.: 15

Timeliness of service
Conformity with specified requirement/specifications
EVALUATION RESULT

Maintain (75%-100%) For further evaluation (50%-74%) Terminated (49% & below)

REMARKS

EVALUATED BY: REVIEWED BY:

RECOMMENDING APPROVAL: APPROVED BY:

DESIGNATION:

QF-PO-08-01-02JUNE18