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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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