The document outlines the procurement process for a construction company. It describes procuring raw materials and accessories from approved suppliers. The process involves receiving requests, obtaining quotations, issuing purchase orders, inspecting incoming materials, storing and preserving items, and issuing materials to departments. The head of procurement is responsible for overseeing the process and ensuring costs and lead times meet parameters.

1. PROCESS MANUAL
VISTA DESIGN AND
DEVELOPMENT LTD
Procurement
DOCUMENT NO : VDDL- PM 02
REVISION NO : 00
PAGE : 1 OF 5
Scope
Procurement process describes procurement of raw materials, engineering accessories,
consumables items for a construction company and Supplier management related to the above
items.
Process Owner
Head of Procurement is responsible for the process activities and performance measures as per
performance parameters.
Process Members
Head of all section, Store In charge and Head of Procurement
Inputs
1. Approved specification of required Raw materials and accessories
2. Experienced Manpower who understand quality management system, quality requirements
and L/C
Outputs
1. Availability of quality raw materials and accessories in time
2. Projection of Resources available
Process Performance Parameters
1. Cost of procurement for identified high value items
2. Lead time vs. actual time for procurement
Procurement Process
Receive PR from stores and verify the following:
a) Material Specification & Drawings (if any)
b) Quantity required & Quantity available in stock.
c) Delivery Schedule
d) Authorization
e) Other instructions if any

2. PROCESS MANUAL
VISTA DESIGN AND
DEVELOPMENT LTD
Procurement
DOCUMENT NO : VDDL- PM 02
REVISION NO : 00
PAGE : 2 OF 5
f) Ask quotation from approved enlisted suppliers by mail or Fax
g) Make a CS by analyzing the quality and price
h) Make P.O on the basis of CS
Prepare a Purchase Order (P.O.) detailing the following and obtain the approval of Head
(Purchase) / Director for:
a) Material Specification
b) Quantity
c) Inspection Criteria
d) Packing & Delivery Instructions
e) Applicable Commercial Terms & Conditions including Tax & VAT particulars
f) Payment terms
Review the P.O. for correctness of the above mentioned particulars and approve it for release.
Send the Original P.O. to the Supplier / Sub-contractor, duplicate to stores and other copies as
necessary.
Enter the P.O. number, Date and Supplier / Sub-contractor in the Purchase Register
Follow-up with the Supplier / Sub-Contractor for prompt deliveries
Emergency Purchase
In Case of emergencies, order can be placed verbally and there after make necessary entries in
the Purchase register.
Amendments
Whenever there is an amendment to the Purchase Order, prepare the amendment indicating the
earlier P.O reference.
Review the amendment requirements and approve the same for release.
Send the amendment to the Supplier / Sub-Contractor and follow -up for the prompt deliveries
Send copies of amendment to the concerned functions for necessary actions
Selection and approval of suppliers is carried out as per procedure for selection & performance
monitoring of suppliers / sub - contractor
Selection of suppliers:

3. PROCESS MANUAL
VISTA DESIGN AND
DEVELOPMENT LTD
Procurement
DOCUMENT NO : VDDL- PM 02
REVISION NO : 00
PAGE : 3 OF 5
Receive information of potential suppliers / sub - contractors through:
a) Personal Contacts
b) Business Journal
c) Suppliers visit to the Company
d) Competitor’s information
e) Buyer reference
Send the “Supplier Evaluation Form” to the vendors.
If any sample is received from the supplier get it inspected / verified from the concerned
department for acceptance.
In case if a visit to supplier premises is required to verify the infrastructure and financial status,
arrange a visit by the concerned dept.
Obtain a visit report from the visiting personnel.
Put up the visit report, if any and the “Supplier Evaluation Form” to Director for approval of the
supplier / sub - contractor.
If required, place a trial order to the potential supplier / sub - contractor, if the commercial &
technical terms are acceptable.
Incoming material Inspection
Inform to the concerned dept. for inspection for new arrivals of materials.
Maintain a List of Inspection Plans to be adopted for different type of materials being received in
the company along with relevant specifications.
Follow relevant Quality Inspection Plan for the characteristics to be tested / verified in
association with the respective departmental heads.
Draw samples from the consignment and inspect it as per guidelines given in the inspection plan
as and where required.
Record observations in Inspection Test Report for incoming receipts and compare the same with
drawings / specifications
Decide conformance / non-conformance and record the same on Inspection Test Report for
incoming receipts

4. PROCESS MANUAL
VISTA DESIGN AND
DEVELOPMENT LTD
Procurement
DOCUMENT NO : VDDL- PM 02
REVISION NO : 00
PAGE : 4 OF 5
RECEIPT
Receive the material along with the accompanying documents and verify the following:
a) Supplier’s name
b) Material Description
c) Quantity
Receive the Bill/Challan from the concerned dept. and enter the details of acceptance on the
Inspection Stamp.
If there is any rejection, obtain the Rejection Details on the reverse of the Bill / Challan.
If the material is accepted, shift it to its designated locations, as applicable.
Material which are not accepted are segregated and preserved in separate areas with
“REJECTED” tag
Rejected and damaged.
For accepted materials, enter details of material accepted in the Stock Ledger
For Rejected or Damaged Material, prepare Memo and send to purchase section for forwarding it
to the supplier with the following details.
a) Supplies Name
b) Bill / Challan Ref.
c) Quantity rejected / damaged
d) Actual quantity received
e) Quantity as per challan.
f) Rejection Details.
STORAGE & PRESERVATION
Materials after acceptance are stored in specified areas and with proper ambient condition for
each material. For example, rod should be kept in such place to avoid rust and cement should be
kept in a place to avoid humidity and moisture or rain water to avoid being solidified. The
materials should also be easily identifiable and provided with tag indicating description and
specifications where applicable as mentioned in the Stock Ledger. The items stored shall be
segregated product wise as appropriate.
Provide adequate storage facilities to ensure that the product is safeguarded against any
deterioration or damage while in storage by either
a) Keeping the material in specified areas

5. PROCESS MANUAL
VISTA DESIGN AND
DEVELOPMENT LTD
Procurement
DOCUMENT NO : VDDL- PM 02
REVISION NO : 00
PAGE : 5 OF 5
b) Preserving the packing till issue
c) Following the instructions provided by the manufacturer or as advised by the user dept.
ISSUEING THE MATERIALS
Receive Store Requisition from the concerned dept. and verify the following:
a) Project name (if applicable)
b) Material Description
c) Quantity requested
d) Authorization
e) Stock position in the Stock ledger
Issue the material accordingly. Enter the quantity issued in the Store Requisition and obtain the
receivers signature.
Update the quantity issued in the stock ledger
Follow FIFO (First In First Out) where required to ensure that the material is consumed prior to
be rusted, solidified or expired.
If the material quantity after issuing is less than the re order level or min stock level specified in
the stock register, make a Purchase Requisition as per requirement.
Adequate measures shall be taken for storage and preservation of raw materials in the site during
construction.
Excess materials that have not been consumed in process are returned to stores by the concerned
sections vide Material Return Note

6. PROCESS MANUAL
VISTA DESIGN AND
DEVELOPMENT LTD
Procurement
DOCUMENT NO : VDDL- PM 02
REVISION NO : 00
PAGE : 5 OF 5
b) Preserving the packing till issue
c) Following the instructions provided by the manufacturer or as advised by the user dept.
ISSUEING THE MATERIALS
Receive Store Requisition from the concerned dept. and verify the following:
a) Project name (if applicable)
b) Material Description
c) Quantity requested
d) Authorization
e) Stock position in the Stock ledger
Issue the material accordingly. Enter the quantity issued in the Store Requisition and obtain the
receivers signature.
Update the quantity issued in the stock ledger
Follow FIFO (First In First Out) where required to ensure that the material is consumed prior to
be rusted, solidified or expired.
If the material quantity after issuing is less than the re order level or min stock level specified in
the stock register, make a Purchase Requisition as per requirement.
Adequate measures shall be taken for storage and preservation of raw materials in the site during
construction.
Excess materials that have not been consumed in process are returned to stores by the concerned
sections vide Material Return Note