QSP 510 01 Contract Review

CONTRACT REVIEW
Doc. Id No.
QSP-510-01
Revision Date
12/9/2013
REVISION
2
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Quality System
Procedure
QSP-510-01 Contract Review Procedure
Revision No.: 1
Effective Date:
Page
CONTRACT REVIEW
3.1
Doc. Id No.
QSP-510-01
Revision Date
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REVISION
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General
The Contract Review procedure of PT Borneo Mandiri Investment can involve one or all
of the following individual procedures:
a) Preparation of Quotation.
b) Preparation of a Customer Order for quality planning.
c) Amendment of Contract.
3.2
Purpose
To provide a consistent process for the review of customer requirements and preparation
of customer orders through final contract.
3.3
3.4
Responsibilities
3.3.1
Managing Director
a) Approval of the contract
b) Confirmation and acceptance of the Inquiry/ PO from the customer.
3.3.2
Operation Manager
a) Review of the contract before sending to customer.
b) Review and approval of the shop order form.
c) Confirmation and acceptance of the verbal instruction from the customer and
convert it to purchase order.
d) Operation manager shall prepare and review for quality planning.
3.3.3
Sales and Marketing Manager

a) Resolve discrepancies with the customer regarding the product.
b) Accept and prepare customer purchase order
c) Evaluate product inquiries/tender from customer.
3.3.4
Sales & Marketing Personnel

a) Compare customer purchase orders with quotations and applicable files for
discrepancies.
b) Coordinate with customers if there are discrepancies between purchase order
and quotations.
c) Receives product inquiries/tender from customers.
Contract Processing & Review

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CONTRACT REVIEW
3.4.1
Doc. Id No.
QSP-510-01
Revision Date
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For every submission of quotation/tender and purchase order received, the sales
and marketing personnel and the design and engineering personnel need to ensure
all the minimum information is provided by filling-up the Contract Review Forms
(CFR-510-01 & CRF-510-02).
a) Product specification such as item description, size, pressure rating, service
condition, service media, fabricate material, end connection, operator and type
must be well defined.
b) Inspection and testing acceptations criteria of the product which shall no
conflict with the API requirement.
c) Statutory and regulatory requirement of the product such as API Spec 6D, 6A
and 16A
d) Key component dimension shall compliance with the API requirement.
e) Quantity.
f) Delivery date.
3.4.2
The minimum information required to process a quote is for pricing purposes only
and not necessarily sufficient to accept a customer purchase order. It is the
responsibility of the Sales and Marketing personnel to obtain the appropriate
datasheets, technical specs and other customer supplied reference material to
satisfy the production process.
3.4.3
A Repeat Order, without changes from the previous production run, is commonly
known as an as before (AB).
3.4.4
Quotations communicated verbally are written and maintained on quote form, or

other appropriate record of the quotation.
3.4.5
Quotes and purchase order should be signed or initialed and dated as evidence of
Contract Review.
3.4.6
The Managing Director, Operations Manager, Sales and Marketing Manager, have
the authority to perform contract review and accept a customer purchase order for
Production, QSP-711-01.
3.4.7
Amendments to Contracts or Purchase Orders are handled in the procedure

documented under 3.5 Contract Amendment.
3.4.8
Evidence of contract review is maintained electronically in the Contract Review

file.
3.4.9
Special requirements or risks determined during the Contract Review Procedure

shall be documented on the Contract Review Form.
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CONTRACT REVIEW
3.5
PROCEDURE
3.5.1
Request for Quote
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a) Sales & Marketing personnel receives inquiry from customer either by email, phone or
fax.
b) Sales & Marketing will forward the received inquiry to the Sales & Marketing
Manager.
c) Sales & Marketing Manager will evaluate the customer inquiry as appropriate and
consider the conditions below:
i) Is the product to be quoted new, changed or an as before?
ii) Is there a price schedule for this or similar product?
iii) Does this product have a history of quality problems?
iv) Should this request for quote be formally evaluated by managing director?
d) If the information available is sufficient and appropriate to process the inquiry, the
Sales & Marketing Manager will forward the information to the Managing Director
for approval.
e) When the information is not sufficient and inappropriate forward the inquiry to the
Sales & Marketing personnel to clarify with the customer.
f) The Sales & Marketing Manager will further evaluate the inquiry as appropriate such
as PT BMI can meet product specifications and customer requirement, and or does the
customers history indicate that this and similar products require further review of
price schedules and /or manufacturing process.
g) The Sales & Marketing Manager will consult the Managing Director should PT BMI
will proceed with the quotation process. Refusal for quote if PT BMI cannot meet the
material requirements or environmental concerns.
h) If the Managing Director decided not to quote, the Sales & Marketing Manager will
sign or initial the Refusal to Quote and will forward it to the Sales & Marketing
personnel.
i)
The Sales & Marketing personnel, will notify the customer by sending the Refusal to
Quote either by email or fax.
j) When the Managing Director approves the quotation, the Sales & Marketing Manager
will forward the information to the Sales & Marketing personnel to prepare the quote.
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CONTRACT REVIEW
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k) The Sales & Marketing personnel will prepare and issue the quotation to the customer
using the Quotation Form.
l) The Sales & Marketing personnel will keep the quotation and refusal to quote in
customer file for reference.
3.5.2
Preparation of a Customer Order for Production

a) Sales & Marketing personnel receives customer purchase order and forwards it to the
Sales & Marketing Manager.
b) Sales & Marketing Manager will attached reference (such as Quotation, Contract
Review Forms, Customer datasheets, customer supplied reference material) to
purchase order for evaluation.
c) Sales & Marketing Manager will then forward the purchase order with attached
reference to the Operations Manager.
d) The Operations Manager will review purchase order against the reference documents,
considering customer requirements and applicable issues such as: price, quantity,
requested delivery, special requirement, identifiable risks, and others.
e) If the conditions in the purchase order is acceptable and approved by the Managing
Director, Sales & Marketing personnel will notify the customer the acceptance of the
contract. If not acceptable , the Sales & Marketing personnel will contact the
customer to reconcile differences.
f) Sales & Marketing personnel will file the approved purchase order with the attached
contract review forms evaluation as record evidence of contract review.
3.5.3
Amendment to Contract
a) Sales & Marketing personnel will receive amendment to contract from customer.
b) Sales & Marketing Manager will forward the amendment contract with attached
reference documents to the Operations Manager to review order information.
c) The Operations Manager will review if the amended contract is acceptable , if PT BMI
able to meet the new requirements and if there is still any identifiable risk.
d) If the contract still not acceptable, the Sales & Marketing Manager will contact the
customer and negotiate an agreement.
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CONTRACT REVIEW
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Revision Date
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e) If the agreement has been reach, the Sales & Marketing Manager will notify the
customer of the amended information/document (e.g customer datasheet and Purchase
Order).
f) The Sales & Marketing personnel will notify the customer of contract acceptance by
fax or email.
g) The Sales & Marketing personnel will document the amendment to the contract in the
appropriate entries. Note date of change, customer contact, and initials/signature of
personnel who accepted the amendment to contract.
h) The Operations Manager with the approval of the Managing Director will release the
purchase order to the Workshop Manager for production.
3.6
Reference Document / Records

a) QSM- 01 Section 5 Product Realization
3.7
Appendix
Appendix 1 CRF-510-01 Contract Review Form (Commercial & Legal)
Appendix 2 CRF-510-02 Contract Review Form (Technical)
Page
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Revision Date
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CONTRACT REVIEW
REVISION
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Appendix 1 CRF-510-01 Contract Review Form (Commercial & Legal)
CONTRACT REVIEW
(Commercial & Legal)
Sales Order
No.:
Scope of
Work:
Customer:
P/O No.:
Doc. Id. No.:

Revision No.:
Effective
Date:
CRF-510-01
0
Ref. Quote
No.:
Manufacture
Repair
Rental
Service
COMMERCIAL AND LEGAL ASPECT

P/B Validity:
Terms of Payment:
P/B Value:
P/O Amount:
Delivery
Point:
Delivery Time:
Commercial and Legal aspect of P/O meet referenced
quotation: Yes
No
If answer is no, customer shall be informed for clarification.
Remarks:
Reviewed by:
Date:
Page
CONTRACT REVIEW
Doc. Id No.
QSP-510-01
Revision Date
12/9/2013
REVISION
2
PAGE
7 OF 9
Appendix 2 CRF-510-02 Contract Review Form (Technical)
Page
CONTRACT REVIEW
Doc. Id No.
QSP-510-01
Revision Date
12/9/2013
REVISION
2
PAGE
8 OF 9
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CONTRACT REVIEW

Sales and Marketing Manager

Sales & Marketing Personnel

Contract Processing & Review

Quotations communicated verbally are written and maintained on quote form, or

Amendments to Contracts or Purchase Orders are handled in the procedure

Evidence of contract review is maintained electronically in the Contract Review

Special requirements or risks determined during the Contract Review Procedure

Request for Quote

Preparation of a Customer Order for Production

Reference Document / Records

Appendix 1 CRF-510-01 Contract Review Form (Commercial & Legal)

Doc. Id. No.:

COMMERCIAL AND LEGAL ASPECT

Appendix 2 CRF-510-02 Contract Review Form (Technical)

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