SAUDI ARAMCO Southern Area Projects Department Doc. No.

:
AL JANADRIYAH EXHIBITION AJEF-DOC-004/PrP
FACILITY, AR-RIYADH Rev. No. R01
EASTERN TRADING & CONT. EST. Date: 18/05/2015
PROCUREMENT PLAN
Req. No. 3000613310

Southern Area Projects Department

Community & Infrastructure Projects Division

AL-JANADRIYAH EXHIBITION FACILITY, AR-RIYADH

PROCUREMENT PLAN

Rev. Date Reason for Issue Prepared by Checked by Approved by

00 20/08/2014 Bid Attachment JCZ AHI SPR

01 18/05/2015 Bid Attachment JMD AHI SPR

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 Doc. No.:
AL JANADRIYAH EXHIBITION AJEF- DOC-004/PrP
FACILITY, AR-RIYADH Rev. No. R01
EASTERN TRADING & CONT. EST. Date: 18/05/2015
PROCUREMENT PLAN
Req. No. 3000613310

A. SCOPE AND PURPOSE

This Procurement Plan describes and outlines the procurement and QA/QC
procedures to be followed for CONTRACTOR supplied materials for this Work in
order to ensure that the materials are procured in accordance with the Contract
Agreement technical job specifications and standards and its timely availability at
the project site.

B. REFERENCE
The procurement procedures described in this plan shall be implemented in
conjunction and/or referred in the following procedures/documents.
 COMPANY Contract Schedules
 Contract Schedules
 Contract Documents, Specifications & Drawings, Codes & Standards.

C. CONTRACTOR’s MATERIAL SUPPLY & SCHEDULE

CONTRACTOR shall supply all the required materials of the Contract job in
accordance with the Construction Scope of Work and Proposed Work Schedule of
this Project.

Procurement Schedule

No. Activities Start End

1.0 Preparation of specification & requisition 01-Oct-14 23-Oct-14

2.0 Coordination with Vendors 25-Oct-14 03-Dec-14

3.0 PO Placement for Long-lead Items 04-Dec-14 30-Dec-14

4.0 Approval of Vendor Drawings 31-Dec-14 14-Jan-15

5.0 Delivery of Fire Protection Equipments 07-Apr-15 23-Apr-15

6.0 Delivery of Fire Alarm System 07-Apr-15 23-Apr-15

7.0 Delivery of HVAC Equipments 26-Mar-15 11-May-15

8.0 Delivery of Elevators 27-Jul-15 30-Jul-15

9.0 Delivery of Power & Lighting Panels 15-Jul-15 16-Jul-15

10.0 Delivery of Main Distribution Panel Board 15-Jul-15 16-Jul-15

11.0 Delivery of UPS system 28-Jun-15 29-Jun-15

 Doc. No.:
AL JANADRIYAH EXHIBITION AJEF- DOC-004/PrP
FACILITY, AR-RIYADH Rev. No. R01
EASTERN TRADING & CONT. EST. Date: 18/05/2015
PROCUREMENT PLAN
Req. No. 3000613310

Procurement Schedule

No. Activities Start End

12.0 Delivery of Electrical Power Supply Feeder Cables 05-Mar-15 28-Mar-15

13.0 Delivery of Communication System Material & Equipments 26-Mar-15 03-Jun-15

14.0 Delivery of Fire Hydrants 05-Mar-15 22-Mar-15

15.0 Delivery of Windows 22-Mar-15 25-Apr-15

16.0 Delivery of Doors & Hardware 15-Mar-15 06-Apr-15

17.0 Delivery of Furnitures 13-Aug-15 26-Aug-15

18.0 Delivery of RTR Pipe and Fittings 12-May-15 30-May-15

19.0 Issue PO for Bulk Materials 04-Dec-14 27-Dec-14

20.0 Submit Final Work Schedule 01-Oct-14 29-Oct-14

D. CONTRACTOR RESPONSIBILITIES
a) Engineering Department Manager
As technical support to procurement functions, his main responsibilities are:
 Reviews the Contract/Bid Documents comprising CONTRACTOR’s
materials supply portion and generate a Master List of these items for
issue to Site Technical Support Services Unit as base reference in the
preparation of Materials Requisitions, and required Material Technical
Submittals to the CLIENT.
 Assists Procurement Manager in Technical evaluation of Vendor’s bid
proposal and soliciting the required Non-Material Requirements (NMRs) i.e.
Product Technical Data Sheet / Brochures, Catalogue Cuts, Material Test
Certificates, etc.
 Reviews and checks the final packaging of the Purchase Requisition
Submittal prepared by Discipline Engineer/Technical Support Services
Supervisor for endorsement to the CLIENT through CONTRACTOR Site
Management and ensures appropriate approval is obtained prior to
procurement. Ensure that the Material Technical Submittals had completed
the acceptance criteria (applicable specifications, standards, IFC Drawing,
Codes and other regulatory requirements) complete CONTRACTOR with
required NMRs and Inspection & Test Requirements (S.A. Form 175s).
 Reviews and checks the Material Requisition (MR) prepared by
disciplined Engineer/Technical Support Services Supervisor approved by
the CLIENT.
 Doc. No.:
AL JANADRIYAH EXHIBITION AJEF- DOC-004/PrP
FACILITY, AR-RIYADH Rev. No. R01
EASTERN TRADING & CONT. EST. Date: 18/05/2015
PROCUREMENT PLAN
Req. No. 3000613310

b) Procurement Department Manager

Is responsible for the management of procurement activities to meet the specified
material specification of the project and serve them in timely manner. His main
roles are:
 Solicits bid proposals from pre-qualified SUPPLIERS/ VENDORS
 Evaluates bid proposal on the commercial, delivery and technical aspects
 Issues Purchase Orders to completing Bidders
 Monitors Procurement and Delivery Status and coordinates closely with the
Site/Construction
 Manages for updated Material Delivery Schedule and Job Requirements

c) Site QA/QC Manager

As QA/QC support to procurement functions, h i s responsibilities are:
 Provides checks and/or verification on Purchase Requisition (PRS)
Submittals on the correct Compliance to the job specifications and
required NMRs and Inspection Requirements (S.A. Form 175) and other
requirements that may apply.
 Conducts checks on PRS and MRs prepared by t h e Technical Unit and
ensures its full compliance to t he CLI ENT q ualit y requirements.
 Prepares purchase submittals package (for level “0”) and Inspection
Assignment Package (IAP’s) for level “1” through level “4” Inspection item
categories.
 Initiates action to prevent non-conformances (NCR), identify and record
quality problems, issue NCR and monitors its resolutions and/or corrective
action.
 Conducts random surveillance, inspection and verification activities at
material transit delivery points (CONTRACTOR’ s Dammam Central
Warehouse) prior to final delivery to site.
 Coordinates closely with construction QA/QC Supervisor for matters
related to procurement activities.

d) Site/Construction Manager
CONTRACTOR designated Site/Construction Manager for this contract job shall
be responsible to oversee that the administration of this Procurement Plan is
implemented in collaboration with the Engineering Manager, Procurement
Manager and Corporate QA/QC Manager.
He sees to it that the necessary planned resources and actions to effectively
implement this procurement plan are provided and continuously supported by
t h e CONTRACTOR T o p M anagement.
 Doc. No.:
AL JANADRIYAH EXHIBITION AJEF- DOC-004/PrP
FACILITY, AR-RIYADH Rev. No. R01
EASTERN TRADING & CONT. EST. Date: 18/05/2015
PROCUREMENT PLAN
Req. No. 3000613310

e) Procurement QC Supervisor
Procurement QC Supervisor (based in CO NTRACTO R H.O.) shall report to t he
Corporate QA/QC Manager and responsible for random review of materials
requisitions and Purchase Orders for compliance with applicable
specification/standards. Depending on the necessity, he organizes and
established the agenda for pre-inspection meetings, issuance of source
inspection assignments and review of Vendors Quality Plan / ITP.
Procurement QC Supervisor will coordinate with Vendor Inspection with technical
assistance through CONTRACTOR pool of Discipline QC Inspectors or by a
Commissioned Third Party Agency Inspector if ever necessitates performing
Vendor Inspection.

E. PROCUREMENT PROCEDURE
1) General
CONTRACTOR shall be governed by the Contract Provisions on “Contractor’s
Procurement Responsibility” as described in Project Quality Management
System (QMS)-Requirements, ISO 9001:2000/2008, and other requirements
set forth therein in the Contract Agreement.
2) Material Requirement Identification
CONTRACTOR Engineering Department shall identify, take off and prepare a
list of all the materials and equipment required as per the Contract Scope of
Work, which shall be referred to the approved, and Issued for Construction
Drawings. This list shall contain the following information as minimum:
 Item Description
 Location of use
 Quantity
 Saudi Aramco Engineering Standards (applicable to the material)
 Saudi Aramco Material Supply (SAMSS) stock number (if applicable)
 Compliance to specific International Codes/Standards
 Recommendation for capital spare parts (may not be applicable for
CONTRACTOR scope since no parent equipment is included in its
supply scope)
 Commodity Code Classification number assigned by THE CLIENT for
the Material/Equipment item.
CONTRACTOR’s Procurement Department shall use this list as the master
guideline for the Procurement of all the items as indicated on the list. CLIENT
shall provide t h e CONTRACTOR f or the formats for the Purchase Order
Control Log and Material Technical Submittals as may be appropriate.

3) Priority Listing and Long Lead Items

 Doc. No.:
AL JANADRIYAH EXHIBITION AJEF- DOC-004/PrP
FACILITY, AR-RIYADH Rev. No. R01
EASTERN TRADING & CONT. EST. Date: 18/05/2015
PROCUREMENT PLAN
Req. No. 3000613310

The master procurement list prepared by Engineering Department shall be

reviewed by the Planning and Scheduling Unit to establish the priority listing
as per the schedules. The Procurement Department identifies the long lead
items from the master list.

Long Lead Items

1. Fire Protection Equipments
2. Fire Alarm System
3. HVAC Equipments
4. Power & Lighting Panels
5. Main Distribution Panel Board
6. UPS system
7. Electrical Power Supply Feeder Cables
8. Communication System Material & Equipments
9. Fire Hydrants
10. Windows
11. Doors & Hardware
12. Furnitures
13. RTR Pipe and Fittings

4) Vendor Sources, Qualification and Quotation Request

CONTRACTOR shall procure only to Saudi Aramco Approved Vendors o n l y . It
shall be the responsibility of Procurement Department to ensure the technical
and quality requirements, and sound financial capabilities of all Vendors
prior to placement of any Purchase Order.
CONTRACTOR Procurement Department shall give special emphasis to
ensure that all materials to be purchased are from local suppliers (stockiest) as
preference and; are manufactured by approved sources.
Should propose Vendors are not listed in the CLIENT Approved Vendor System
and CONTRACTOR intends to utilize their product, CONTRACTOR shall pre-
qualify this Vendor & its source supplier and follow the requirements set forth
in Contract Schedule. T h e CLIENT shall be notified at least two (2) weeks
ahead of the planned supplier survey. This applies only for Products requiring
inspection per S.A. 175.

5) Purchase Requisition Submittals (PRS) of Materials - Submittals for CLIENT

Review and Comments.
CONTRACTOR Engineering Department/Technical Support Unit shall submit a
request for Material Technical A pproval of propose material/equipment on a
prescribed submittal format preferred, showing material item/ 9COMM and
proposed Vendor/Supplier. Prior to purchase, all materials must be
 Doc. No.:
AL JANADRIYAH EXHIBITION AJEF- DOC-004/PrP
FACILITY, AR-RIYADH Rev. No. R01
EASTERN TRADING & CONT. EST. Date: 18/05/2015
PROCUREMENT PLAN
Req. No. 3000613310

approved, except consumables, to meet the CLIENT technical requirements per

applicable SAMSS and Engineering Standards etc.

6) Material Requisition (MRs)

Upon receipt of approval of PRS from the CLIENT, t h e CONTRACTOR
Engineering Dept./Technical Support Services Unit, initiate Material Requisition
and forward to QA/QC Dept. for review of correctness and passed to
Procurement Department as basis for the preparation of Proforma Purchase
Order (P.O.) to be included in the preparation of Purchase Requisition
Submittal (for Level ‘0’ and Inspection Assignment Package (for Level ‘1’
through ‘4’) by CONTRACTOR’s QA/QC Unit. The Material Requisition shall
be checked per the following:
 Complete CONTRACTOR description of materials per Saudi Aramco
designated Classification Commodity Code (9COMM)
 Quantities
 Non Material Requirements (NMRs)
 Inspection requirements per S.A. Form required
 Copy of approved PRS as attachment to MR.
 Spare Parts (as applicable data requirements)

7) Inspection Assignment Package (IAP) Submittals

Inspection Assignment Package (IAP) are prepared in lieu of Purchase
Requisition Submittal for items categorized to Inspection level 1, 2, 3 and 4
pursuant to Contract Requirements, and only after PRS had been approved by
the CLIENT. The Inspection Assignment Package shall be submitted to the
CLIENT for review and approval prior to issuance of final P.O. to Vendor and
start of manufacture. For level 2, 3 & 4 Pre-Inspection Meeting (PIM) is
required prior to start of Materials manufacture at Vendor’s Plant.
Final Purchase Order (P.O.) shall only be issued to Vendor after seeking
approval of Inspection Assignment Package (IAP) from THE CLIENT.

8) Expediting
CONTRACTOR shall ensure that the Inspectors and/or expediters and/or those
appointed by them shall have free access to CONTRACTOR’s and its Vendor’s
offices and works.
During expediting, CONTRACTOR shall be responsible for giving complete and
reliable information on the purchase order status. The information will include
shipping schedule, issuance and progress status of any orders, critical orders
and the expected arrival dates.
CONTRACTOR Expediters shall prepare and forward at regular intervals to
Procurement Department, an up-to-date status report of Vendors.
 Doc. No.:
AL JANADRIYAH EXHIBITION AJEF- DOC-004/PrP
FACILITY, AR-RIYADH Rev. No. R01
EASTERN TRADING & CONT. EST. Date: 18/05/2015
PROCUREMENT PLAN
Req. No. 3000613310

CONTRACTOR shall expedite all purchase orders, revisions and

amendments (including vendor’s quotations, any applicable engineering
design calculations, drawings, spare parts data, installation, operating and
maintenance instructions, other Non-Material R equirements, invoices etc.)
after placement of purchase orders. CONTRACTOR shall verify with vendors,
before placement of an order that their deliveries meet the required shipping
schedule.
CONTRACTOR shall maintain control of delivery dates established for the
project. CONTRACTOR shall ensure that all vendors meet the applicable
quality assurance requirements of Contract Agreement and CONTRACTOR’s
Quality Assurance and Quality Control Procedures, as set forth in the Project
Quality Plan.
CONTRACTOR s h a l l expedite the review and approval of all Non-Material
R e q u i r e m e n t s r e c e i v e d from the vendors. These include, but are not
limited to, Design Calculation, Drawings, Spare Parts Data, Special Tools (if
any), spare parts recommendations (if applicable) and other data generated by
vendors requiring approval by CONTRACTOR and/or the CLIENT.
9) Control of Manufacturing Processes During Procurement
Prior to commencement of any manufacturing (for Vendor’s Source Inspection
items) by CONTRACTOR Vendors/Manufacturers, CONTRACTOR shall
submit to Client for review & approval such as Welding Procedure, Welding
repair, NDT, PMI, which also include quality personnel qualification
requirements and out of Kingdom NDT. These submittals are waived if
Vendor/Manufacturers are already accredited by the CLIENT, but shall form part
of in-process Inspection Documents review and included in the Final
Disposition Report.
10) Inspection and Testing
As may be applicable, CONTRACTOR Procurement QC Supervisor shall
prepare Inspection Assignment Package for items subjected to inspection
levels 1, 2, 3 and 4 pursuant to Contract Requirements. Materials classified as
Level 1 are exempted from pre-inspection meeting. Final Inspection is only
required for Level 1 items prior to release at Vendor's shop and is governed
by Inspection Requirements, Form 175, Materials categorized as Level 0 are
exempted for CLIENT Inspection Division monitoring Inspection but require QC
documentation i.e. Material Test Certificates and/or Product Data Sheet, etc.
The Inspection Assignment Package (applicable to level 1, 2, 3 & 4) to be
submitted to CLIENT Inspection Division for review and approval for each item
shall includes:
 CONTRACTOR un-priced Purchase Order or subcontractor with
complete attachment
 Copies of sub-supplier un-priced Purchase Orders (if applicable)
 Inspection requirement as specified in the Applicable S.A. Form 175
 Inspection Assignment Sheet specifying the Inspector(s) that will
perform the inspections
 Inspection and Test Plan (ITP)
 Doc. No.:
AL JANADRIYAH EXHIBITION AJEF- DOC-004/PrP
FACILITY, AR-RIYADH Rev. No. R01
EASTERN TRADING & CONT. EST. Date: 18/05/2015
PROCUREMENT PLAN
Req. No. 3000613310

 The level of CONTRACTOR's and Client's (Buyers) Inspection

Intervention as confirmed by THE CLIENT Inspection Division
 Agenda for Pre-Inspection Meeting
Vendor's ITP (for level 2, 3 & 4 only) included in the Inspection Assignment
Package contains the followings:
 Process Description
 Quality Control Reports
 Notification Requirements for Vendors inspection witness & hold points
(minimum 5 working days)
 Responsibilities
 Applicable Procedure
 Acceptance Criteria
 Verifying Documents
 Inspection points
 Hold point
CONTRACTOR's assigned Vendor's Inspector or its approved Third Party
Inspector shall schedule & perform source inspection at Vendor or sub-supplier
fabrication shop as specified in the approved ITP. CONTRACTOR shall submit
to CLIENT the Vendors test reports.
11) Inspection Schedule and Status
CONTRACTOR shall submit each week a Two- Weeks Look Ahead Schedule
of planned QA/QC activities for procurement and status of resolution on
issued NCRs to Vendors / Subcontractors. CONTRACTOR Procurement QC
Supervisor is responsible for its preparation and control.
12) Procurement Inspection and Test Records
Prior to release of Vendor's item at their Production Location and after
successful test & inspection, CONTRACTOR shall require the Vendor to
submit all relevant manufacturing test reports as specified on Purchase Order
requirement in reference to CLIENT acceptance criteria. These reports shall be
submitted to CLIENT with the Inspection Disposition Report.
13) Final Disposition Reports
Within two (2) weeks after acceptance of the materials from Vendor,
CONTRACTOR shall prepare Inspection Disposition Report to CLIENT which
shall include:
 Copies of approved Waivers to CLIENT
 CONTRACTOR's witnessed inspection record.
 Copies of Vendors quality records.
 Copies of all NCRs with final disposition and resolution.
 Doc. No.:
AL JANADRIYAH EXHIBITION AJEF- DOC-004/PrP
FACILITY, AR-RIYADH Rev. No. R01
EASTERN TRADING & CONT. EST. Date: 18/05/2015
PROCUREMENT PLAN
Req. No. 3000613310

 Copies of Inspection Release Certificates (IRC) as evidence of positive

disposition on the inspected materials.
14) Packing
CONTRACTOR and/or its Vendor shall ensure that the packing shall be
capable of withstanding all hazards normally encountered during
transportation including loading and unloading operations. It should protect
goods from weather conditions.
Spare parts shall be packed separately from the equipment, which they are
referred to. The packing list (not made on headed paper) shall bear:
 CONTRACTOR Purchase Order reference
 CLIENT reference number
 Gross, net weights and dimensions for each package
 Description of goods as per P.O.
15) Shipping and Invoicing
CONTRACTOR Vendor/s shall be responsible for shipping the material from
the country of origin to Saudi Arabia, in accordance to CONTRACTOR
shipping and invoicing instructions as attached to the Purchase Order. This
includes, but not limited to ocean freight, airfreight, export packing, insurance
(if any), and export licenses, authorization and all associated documentations
required. The shipping documents compiled by CONTRACTOR and/or its
Sub-vendor shall include, but not limited to the following:
1. Invoices - Made on sub-vendor’s headed paper, and shall bear the
CONTRACTOR purchase order reference, C L I E N T ref. no., and final
destination of goods and description of goods as per Purchase Order.
2. Packing list - In accordance with section 14 and above.
3. Certificate of origin - For all materials manufactured outside the
Kingdom of Saudi Arabia, Vendor shall obtain a certificate of origin
issued by chamber of commerce in the manufacturer’s country.
The certificate of origin must show:
 Consignee
 CONTRACTOR Purchase Order reference
 CLIENT Reference No.
 Materials, type of packages and total gross net weight
 The full name and address of the manufacturer
4. SASO Certificate (if applicable only)
Saudi Arabian Standard Organization’s (SASO) certificate of conformity
to standard specifications for items that may be required in the Contract
job specification.
5. Packing Marking
 Doc. No.:
AL JANADRIYAH EXHIBITION AJEF- DOC-004/PrP
FACILITY, AR-RIYADH Rev. No. R01
EASTERN TRADING & CONT. EST. Date: 18/05/2015
PROCUREMENT PLAN
Req. No. 3000613310

Each package shall be well marked visibly on three sides.

16) Receiving
For materials directly purchased from foreign Vendors/Suppliers,
CONTRACTOR’s Procurement Department shall be responsible for clearing the
material through Saudi Arabian customs, off-loading, and inspection on receipt,
delivery to the CONTRACTOR warehouse. CONTRACTOR shall inform the
CLIENT the status of received material.
17) Materials Procurement Status
To ensure delivery of materials will be at site during the scheduled need on its
respective activity use, CONTRACTOR normally monitors Procurements
Status through Procurement Status Report a n d shall be highlighted during
Weekly Progress Meeting and included in the minutes.
18) Quality Management Reports
Pursuant to Contract schedule, CONTRACTOR shall prepare and submit
monthly quality management report to the CLIENT covering the following, for
distribution to concerned Client Inspection Units:
 Listing of supplier surveys performed with a summary of findings.
 Listing of Pre-inspection Meeting conducted.
 Listing of supplier inspections performed versus scheduled inspections.
 Non-Conformance Reports issued to vendors: number issued, closed
out, and pending for the month.
 Listing of quality audits complete CONTRACTOR (internal and
subcontractor).
 Listing and disposition of all defective or rejected material or equipment
received at job site by CONTRACTOR and subcontractor.
 Welding rejection rate reported on a per joint basis for structural, and
alloy welds. A chart showing the historical performance during the
project shall be included.
 Listing and status of engineering waivers requested.
 QA/QC Personnel Listing by Discipline as specified in Contract
Requirements.

F. APPENDICES
1. Material Receiving Report - Form No. WF-10
2. Material Inspection Report - Form No. Q-006
3. Non-Conformance Report - Form No. Q-005
4. Inventory Stock Card - Form No. WF-11
5. Issue Voucher - Form No. WF-07