Purchasing Terms & Conditions
PRE-DELIVERY
1.0 Pre-Planning
A. Pre-Planning Steps
1. Coordination with GC regarding site logistics – site logistics (i.e., crane schedule, man lift schedule, forklift schedule, trucking lanes, city loading zone requirements, site laydown, plan flow of installation, discussion about our kitting containers and kitting plan). This may be multiple meetings as the project moves into the different phases of construction.
2. Set-Up Job Number and Budget.
3. Review specifications, scope of work, quantities, estimate, schedule, material availability and logistics.
4. PM to develop a construction estimate and work with GF to develop means and methods with focus on critical path items relating to casting concrete installation, bulk-buys (consider purchasing only 70% up front) and committed cost items broken down by phase of construction.
5. Generate material take-offs, based on detailed plans.
6. Review schedule and prioritize scopes of work (Work Packets) to be performed. Start developing a material list for materials / items that are common to all work packets. Then start a second material list for each (Work Packet) for materials / items specific to that task. Project Manager and General Foreman / Foreman and Purchasing Manager to review for “Bulk Buy” / Savings opportunities.
7. Identify what level of detail VDC will model to (i.e., identify critical path areas that are beneficial to have modeled).
8. Forecast material needs for cookie cutter floors and communicate to the vendors quantities needed per floor and estimated schedule. On cookie cutter (like floors) write a PO per floor with anticipated delivery dates.
9. For large projects, use the never out of stock nut and bolt bin box provided by Edge Construction Supply.
10. Have 2 Vendor Kickoff Meetings:
a. Meeting #1 – Is in the office discussing terms and conditions, planned order days, means and methods, delivery schedules, inventory requirements, create 1-page delivery instruction sheet, inform suppliers that no back orders are to be delivered outside the delivery windows without prior approval.
b. Meeting #2 – On site to understand the constraints of the project. Introductions of supplier personnel to site personnel and discuss site logistics, noise zones, and delivery schedules/times, review Sequoyah and GC expectations and delivery requirements.
SEE NEW JOB KICK-OFF CHECKLIST and AGENDA! Under Purchasing/PM Forms.
11. Identify must haves per phase for "never out of stock (NOS)" items.
12. GF and Material Manager to share office space for improved communication and daily workflow alignment.
13. GF and Material Manager to have two daily meetings.
14. Share material managers with Division 44.
15. Avoid freight companies delivering direct to job sites. Everything to be delivered via vendor truck.
2.0 Material Requisitions
A. Sequoyah preferred vendors.
1. We have Master Terms & Conditions Agreements with these vendors. Please review these terms.
2. Project Specific Terms still need to be added to PO’s.: G:\Shared\Company Resources\Purchasing\Terms and Conditions\New Terms & Conditions 2018 Electrical Distributors: North Coast, Stoneway Electric Supply, Wesco
3. Supplier Contacts: G:\Shared\Company Resources\Purchasing\Supplier Contacts Construction Supplies: Edge Construction Supply
4. Wire & Cable: Anixter, Connect-Air, Windy City Wire
5. Generators: Cummins, Kohler-Power Systems West, CAT-NC Machinery, Pacific Power Group, Rental Equipment: Sunbelt Rentals
B. Order supplies in bulk, considering average cost to process a Purchase Order is over $200.00.
C. Supplier Job Account Forms – required when purchasing over $5000 for a job.
1. Send all supplier requests for job account forms to the designated person in the accounting department.
2. Currently handled by AR – ar@sequoyah.com
D. Office Supplies: Order all Office Supplies from the Human Resources Coordinator: Madison Moore
E. After Hours PO’s.
1. If you are unable to get a PO Number from Purchasing, please use your full name & Job Number. Platt Electric does an excellent job for after-hours emergencies, just call (425) 624-4083 and live person will answer the phone, check stock, and get someone to open the store in your area for you.
2. Provide Job notes that should be on each PO to Purchasing. EXAMPLES: Job site Hours, Delivery time window, site contact and alternat contact, delivery notification requirements, truck size, lift gates required, Foreman color code legend etc.
3. Each time you start a new job, use the current forms on the “G” Drive or Apex Web, as they are updated regularly.
F. Commodity Material Orders
1. Plan your work packets and associated material orders as far ahead as possible.
2. Pre-plan your work packets minimum of 4 weeks ahead of intended start of task.
3. Keep a running list of items needed by supplier and order in bulk.
4. Communicate to purchasing which materials are needed onsite and when.
5. If ordering materials for multiple foremen assign each foreman a color. Email color code matrix to Purchasing so it can be added as a note on every PO. Note Foreman name and color on the material requisition.
6. Order minimum 3-days prior to delivery date.
7. Email all material requisitions to Purchasing by 10:00am.
8. Early in project provide project specifications/approved submittals to commodities vendor and review any concerns with them. PM/PE to review project specification requirements with GF/FM.
9. When receiving deliveries, notify Purchasing of any shortages, damaged materials, back orders.
10. Material Cost Codes: Purchasing will use Sequoyah standard material cost codes for all materials unless the material requisition specifies a specific cost code to use.
G. Major Purchase Orders / Quoted Materials:
1. Items to address during the RFQ (Request for Quote) process. Prior to submitting a Major PO request.
· Payment terms: Will be as agreed with suppliers unless a quote stating longer payment terms is included with the PO request.
· Confirm freight costs are included or have supplier quote freight costs in advance.
· Confirm FOB Point. Our preference is always FOB Job site. This is when we take ownership of materials. The seller is responsible for any freight claims up to that point.
· Confirm Storage / multiple deliveries of materials is included. Must be noted on the quote.
2. Please fill out Order Forms complete and provide as much detail as possible. Please use all capital letters when submitting “Material Requisitions, Major PO’s & PO Amendments”, as it works better for the APEX Purchasing system.
3. Consider adding the following to a Major PO request.
· OPERATION & MAINTENANCE MAUALS: Indicate if operations and maintenance manuals are needed and date required.
· SPARES, WARRANTY / EXTENDED WARRANTY. PENALTIES
· Provide packaging, shipping, and labeling instructions.
· Provide delivery notification information.
· Provide Weekly Updated shipping schedules.
· Are materials taxable? Is this a government job?
H. PURCHASE ORDER VERBAIGE:
1. Use Major PO Document language as provided by purchasing.
I. PROJECT SPECIFIC PO TERMS AND CONDITIONS:
1. Include the “Word Version” of Project Specific PO Terms and Conditions for major PO’s. Switchgear, Lighting & Lighting Controls and Generators.
2. To make any changes to a Major PO Request please use the PO Amendment Form
J. Project Managers release all gear and lighting directly with the supplier and coordinated with purchasing.
K. Lighting Releases:
1. Coordinate all lighting deliveries with GF and/or Material handler or foreman. Send DETAILED request to vendor with fixture types include part number and components. Attach the factory packing slip to help both the vendor pull the order and let the field know what they should be receiving. If fixtures are coming into OSP, request delivery here to Redmond and copy to Sequoyah Fabrication so they know what is being delivered. Discuss details prior with Jessica if possible.
L. PO Amendment Forms – How to Prepare PO Amendment Forms:
1. Purchase Order Amendment Forms are used to Add or Delete items and associated costs from a Major PO. Adds and deletes need to be separate lines on the PO for the accounting to be able to receive invoices and credits. On the PO Amendment form please provide a total Lot Add and if applicable a total Lot Deduct. Include Cost Code.
M. Purchase orders / Subcontracts / MSA Work Orders.
1. The MSA List is located at: G:\Shared\Company Resources\Contracts & Bonding\_ PROJECT MANAGERS - All Sub Forms
2. If you are in the field, you may contact the Contract Manager or Purchasing Department any time for a copy of the MSA list.
3. Subcontracts and MSA’s:
a. Please submit all Subcontract and Work Orders on MSA’s to the Sequoyah Contracts Manager. Melissa.acob@sequoyah.com.
4. Purchase Orders:
a. Please submit all Purchase Order requests to the Purchasing Department. purchasing@sequoyah.com.
b. Instructions:
1) Please check the Sequoyah MSA “Master Subcontract Agreement” list to see is the supplier has an MSA in place. If an MSA is in place, then we use a Work Order against the MSA regardless of if the dollar amount is greater than or less than $5,000.00.
· Exception #1: If there is no on-site labor required than a Purchase Order is OK.
· Exception #2: For Division 43 and Division 44 only we can issue Subcontractors POs “Purchase Orders” instead of Work Orders when we aren’t working for a GC or Owner on (small projects, service work, etc.).
2) Subcontracts must be used if more than $5,000.00 labor is required.
3) Purchase Orders may be used if less than $5,000.00 labor is required.
4) Please submit all Subcontract and Work Orders on MSA’s to the Sequoyah Contracts Manager contracts@sequoyah.com
5) Purchase Orders: Email POs to the Purchasing Department. purchasing@sequoyah.com
N. Certificate of insurance (COI) process:
1. Job Specific Certificates of insurance are required when we hire others to (Perform Labor) on Sequoyah job sites.
2. For Engineering Services PO’s and “Studies” PO’s under $5K we still need a COI for Professional Liability insurance. Over $5,000.00 must be a Subcontract.
3. For Job Walks: We need "evidence of insurance" making sure they have insurance if they step on site and something happens.”
4. Mark “YES” COI required on the PO request. The Sequoyah Contract Manager will send the supplier or subcontractor a Job Specific COI request per the contract documents.
Minimum Requirements for Contracts/Subs/PO’s/COI’S
1. Customers requesting to be named “additional insured.”
· If a customer is requesting to be named “additional insured”, there must be a written agreement in place (Customer contract or signed Sequoyah proposal) for the coverage to be effective, regardless of price. An email response accepting our Sequoyah proposal and scope in lieu of their signature is also acceptable. Please save a copy of the signed proposal or email confirmation in your “Contracts” folder.
2. Minimum Contract requirements to issue an MSA WO, Subcontract, or PO
· Before an MSA WO, Subcontract, or PO can be issued on a project, there must be a written agreement in place with the Customer (Customer contract or signed Sequoyah proposal) regardless of price. Due to the risk, Sequoyah needs to tie the sub or PO vendor to our Customer contract. An email response accepting our Sequoyah proposal and scope in lieu of their signature is also acceptable. Please save a copy of the signed proposal or email confirmation in your “Contracts” folder.
*NOTE: For "Emergency Service Calls", a Sequoyah proposal with the scope and pricing on a T & M basis only (no specific pricing) is an acceptable contract.
3. If a customer references their PO# but does not provide Sequoyah with a physical PO and an MSA WO, Subcontract, PO needs to be issued
· Contracts will need the physical PO or a signed Sequoyah proposal from the customer, regardless of price. An email response accepting our Sequoyah proposal and scope in lieu of their signature is also acceptable. Please save a copy of the signed proposal or email confirmation in your “Contracts” folder.
4. PO Vendors hiring lower tiers to perform work, testing, engineering, or commissioning
· Purchasing will forward the PO to Contracts to send the vendor our Insurance Requirements – Attachment A. Contracts will request a COI from the PO Vendor, however, will no longer require a COI from any lower tiers. We are passing the risk of lower tier coverage back to the PO Vendor. Starting today, Duane will include the following language on all PO’s removing the risk from Sequoyah.
“PO VENDOR “THE SELLER” IS REQUIRED TO PASS DOWN THE INSURANCE REQUIREMENTS - ATTACHMENT “A” TO ANY LOWER SUB TIERS PROVIDING, LABOR, ENGINEERING SERVICES, CASE STUDIES, TESTING OR ON-SITE START-UP & COMMISSIONING FOR PROPER COVERAGE.
THE FOLLOWING SERVICES REQUIRE PROFESSIONAL LIABILITY COVERAGE, (ENGINEERING SERVICES, CASE STUDIES AND TESTING).”
O. Internal PO process. Electrical to SNS & SNS to Electrical.
1. Internal SNS PO’s. See SNS PO Notes.
G:\Shared\Company Resources\Purchasing\Terms and Conditions\SNS PO NOTES
P. VMI – Vendor Managed Inventory
1. VMI – We have created Never out of stock lists for (Edge Construction Supply & Electrical Distributor)
2. Using these material lists / templates when ordering by task will help receive materials already divided by supplier instead of all mixed together.
3. Please contact the Purchasing Manager if you are interested in VMI for your project.
Q. 3rd Party Rental Equipment Procedure:
1. All equipment is to be rented and called off rent through the Purchasing Department.
2. Use the Rental Request / Transfer form.
3. Rental Rates are located here: G:\Shared\Company Resources\Purchasing\Rental Forms & Rates.
4. When calling off rental equipment please reference “Unit Numbers” and PO number if available of the equipment and note where on site the equipment is located, and when you would like it picked up.
5. Do not let any other trade use any equipment rented by Sequoyah “Under Any Circumstances” as they are not covered by our insurance!
POST-DELIVERY
3.0 Receiving Materials
A. Double check the material delivered vs. the material request form / requisition & packing slip.
B. Use the original requisition and the PO from the vendor, when checking in material, is critical to knowing what is coming in and if it is correct. The fact that the requisition has trade names the stockmen/person checking in the material really helps recognize if there are any discrepancies.
C. For Will/Calls: The person picking up the material is responsible for making sure it is correct and making changes at the counter when it is not.
D. Notify Purchasing not the supplier of any Back orders or Errors.