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The purpose of this procedure is to outline the sequence in
preparing and handling Cost Request to solicit market prices of
materials, equipments, sub-contract quotation needed to base
competitive pricing of bid estimates.
The procedure is also intended to generate information regarding
current prices for major MMG supplied plant permanent materials,
and equipment and to determine the availability, whether it is
locally available or a foreign source.
This procedure will also provide evaluation data to be used in theselection of proposed Subcontractors.
The scope covers preparation of Cost Requests by the Engineering
Department, requesting Central Purchasing Department Cost
Request Section to solicit prices of materials and equipment.
Contracts Department for securing quotations from possible
subcontractors.
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COST REQUEST
Are forms originated by Engineering Estimating Sectionaddressed to Central Purchasing Department (CPD) Cost
Request Section (Form No. END-4-007A) requesting to solicit
current prices of identified Contractor Supplied materials or
equipments from Suppliers not available in Engineering Files.
Cost Request Form No. END-4-007D is used to requestquotation for subcontracted items addressed to Contracts
Department.
Product Data are material technical literature,
specifications, brochures or other manufacturers material
references.
REFERENCES
Engineering Estimating Procedure
Procedure No. END-3-009
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CHIEF ENGINEER
Overall management of the Engineering Departmentfunctions.
PROPOSAL MANAGER / ESTIMATING MANAGER
Supervise the Bid development and Engineering
Estimating, Approval of Cost Request.
CENTRAL PURCHASING DEPARTMENT
Solicit prices for materials and equipment.
CONTRACTS DEPARTMENTSolicit subcontract quotation for requested
subcontracted items from approved Subcontractors.
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(continuation)
ESTIMATING SUPERVISING ENGINEER
Supervise respective engineering estimating
discipline, Identify major contractor supplied material
and subcontracted items.
Check Cost Request and analyze quotations from CPD& Contracts.
ESTIMATING ENGINEER
Determine the material, equipment and subcontract
item with no available current prices or quotations, andprepare the Cost Request.
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Estimating Engineer prepares the Cost Request prior
forwarding to the approval by the concerned Proposal
Manager or Estimating Manager.Approved Cost Requests are forwarded via the Document
Controller for recording in the Cost Request Transmittal
Control Sheet (Form No. END-4-015C). The Document
Controller prepares Transmittal Form No. QAD-4-202 and
attached to the Cost Request, then it is forwarded to eitherCPD (for materials) or to Contracts Department (for
Subcontractor)
CPD then make the necessary communication with Material
Suppliers to obtain material quotations or prices as
requested in the Cost Request, Likewise, the ContractsDepartment make necessary contact with MMG or Client
approved subcontractors to obtain quotations for the
proposed subcontracted items described in the Cost
Request.
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(continuation)
CPD if possible, to solicit three (3) Material Suppliers
quotation for major MMG supplied permanent materials.Contracts Department to obtain, if possible at least three (3)
quotations for Subcontracted items from approved
Subcontractors.
A minimum of five (5) days and maximum of ten (10) days is
allotted to CPD or Contracts Department to process the CostRequest.
Material price quotations from the Suppliers received by CPD
or Work Quotations from Subcontractors received by Contracts
Department are immediately forwarded to Engineering
Department through the Engineering Document Controller. TheDocument Controller receives the above information, stamp
date, and record in the control log book and subsequently
forward the same to the concerned discipline Supervising
Engineer and finally gven to the originator Estimating Engineer.
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(continuation)
As required by the Customer or where the Bid Contract
specify for a ten (10) days period after the receipt ofNotice to Proceed on awarded project for Contractor to
submit material Product Data for Customer approval, prior
to purchase of Contractor supplied permanent materials,
the following action should be made.
Discipline Estimating Engineers during the bid estimateprepares the Proposed Product Lists using Form No. END-4-
007B, for identified MMG supplied permanent materials for
the specific project.
The proposed Product List includes the detailed
description of the material, material quantity, unit of
measure and instructions, if required to obtain
manufacturers or material product data for major
permanent materials,
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(continuation)
The Proposed Product List is then forwarded to CPD to start
soliciting the required product data for the anticipatedpotential projects.
All Product Data obtained by CPD is forwarded to Engineering
Department through the Engineering Document Controller who
will then keep all the Product Data on his file until needed,
until award of Contract for the specific project requirement.Upon award of Contract, the Engineering Department will
immediately endorse all available product data to the assigned
Engineering Project Task Force Supervising Engineer.
The Engineering Supervising Engineer through the Project
Manager will then submit the product data for all majorContractor supplied permanent materials to the Customer for
approval within the ten (10) days period, subsequent to
Contract award in conformance with the requirement of the
Contract Document.
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ENGINEERING DEPARTMENT
TASK TITLE
COST REQUEST
(END-3-007)
ESTIMATING ENGINEERS
Prepare Cost Request for Material/ Subcontract Price Quotation
(END-4-013A)
Assign CR Control Number andprepare Transmittal
(QAD-4-202 / END-4-015C)
START
A1End
CPDDOCUMENT CONTROLLER
DOCUMENT CONTROLLER
Transmit Cost Request
(END-4-007A-D)
Prepare Cost Request(END-4-007B)
If requires only
ESTIMATING ENGINEERS
CTD
CPD / CTD
Forward all solicitedQuotations and Technical
Data to END
Solicit Material PriceQuotation from approved
material Suppliers
CPD CTD
Forward Quotation / TechnicalData to Estimating Engineers
DOCUMENT CONTROLLER
Solicit Subcontract PriceQuotation from approved
Subcontractors
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PROCEDURE FOR COST REQUEST =
SOLICITING CURRENT MARKET PRICES FOR MMG SUPPLIED MATERIAL
AND SUBCONTRACT ITEMS DURING BID DEVELOPMENT STAGE.
PREPARATION OF COST REQUEST
Estimating Engineers prepares Cost Request (CR) Form No. END-4-007A for
MMG supplied material and/or Form No. END-4-007D for Subcontract Work
Item requiring current market price estimate. The format shall include
material or work description, quantity, unit of measure, date submitted, date
required, referenced transmittal number, name & signature of originator, The
provision for product data, Suppliers or Subcontractors brochures or
company profile/date is specified in the CR (Form No. END-4-007B) will be
submitted if required.
Review / check the CR before forwarding to the approval by the concerned
Proposal / Engineering Manager / Supervising Engineer.
Approved CR is forwarded to Engineering Department (END) Document
Controller (DC) for assigning of CR Control Number, Prepare Transmittal
Form No. QAD-4-202 and record in Cost Request Transmittal Control Sheet
(END-4-015C)
END Document Controller transmits CR for MMG supplied material Form
No. END-4-007A to CPD Cost Request Section.
END Document Controller transmits CR for Subcontract Work Item Form
No. END-4-007D to Contracts Department (CTD)
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QUOTATION & TECHNICAL DATA
COMING FROM CPD COST REQUEST SECTION
Quotation and Technical Data to ENDEND Document Controller receives the Quotation &
Technical Data and record in the Cost Request File.
END Document Controller forward the Quotation and
Technical Data to the Engineering Section Estimatorwho initiated the Cost Request.
Receives the Quotation & Technical Data for his
estimating requirement.
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