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DOCUMENT TITLE

CONTRACT
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Rev. No.

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Revision History

Originator

Date

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1.0

PURPOSE
1.1

2.0

This procedure describes the companys system on contract

review prior to submission of tender/proposal and on
acceptance of contract from clients.

SCOPE
2.1 This procedure shall be followed in general for all
tenders/proposals submitted by the company, but some steps from
this procedure may be omitted for small value projects.

3.0

REFERENCES
3.1

4.0

ISO 9001-2008 Section ____

RESPONSIBILITIES
The CESCO President or in his absence the Operation Manager is
responsible for the approval of final proposal packages.
The General Manager (Technical) is responsible for the final review
of the proposal package.
The Estimation Supervisor is responsible for coordinating the
preparation of the proposal package and initial review of the same
with the discipline engineers.
On acceptance of Contract, the Estimation Supervisor and/or Project
Manager shall review the contract documents to ascertain differences, if
any, between the contract requirements and those in the tender.

5.0

PROCEDURE
5.1
RECEIPT OF TENDERS
5.1.1 Invitation for proposal is normally received by fax or email.
These faxes/emails are recorded in the incoming file or email
by the Sales Department or the President and forwarded to
the Estimation Department .
5.1.2 When the original documents are received, a file is opened
with a unique reference number to identify the
project/contract usually RFQ No. or RFP No. The Document
Controller shall check whether the received documents are
complete.
5.1.3 These documents are controlled and maintained till the
finalization of the contract by the client. If the project is
awarded to CESCO, the documents are further controlled and

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maintained for a specified period of time fixed by the
company.
5.1.4 If the project is not awarded to CESCO, the documents are
removed from control and disposed off to the companys
Archive Records.
5.1.5 The documents are distributed to the concerned staff through
the Estimation Supervisor for the preparation of necessary
proposals.
5.2

TENDER REVIEW
The General Manager and the Estimation Supervisor shall review
the tender documents for clarity and adequacy of information and
any clarification required shall be obtained from the client.
A review shall be made on the technical requirements and pricing
and also capability of CESCO to quote for the project. Necessary
decision shall be taken by the Estimation Supervisor in consultation
with the President/General Manager (Technical). On deciding to
quote, the project shall be listed in the Active Bid Status Reports for
the following:

Active Bid (Lumpsum/LFC) Updates

Active Bid (SFC) Status Report
Active PQs Updates
Submitted Bids Weekly Updates
Submitted PQ Weekly Updates
Solicitation for Proposal Weekly Updates

Job explanation meeting and site visit shall be attended with the
client, as required, to obtain detailed information on the tender.
5.3

ESTIMATION
The Estimation Supervisor shall arrange a team/individual to
perform the estimation, considering the nature of the project. A
target date shall be given to complete the proposal.
Based on the available information on specification and quantities,
the Estimators shall send Request for Quotation (form:
CES/EST/007) to the Vendors / Suppliers for material / subcontract
prices.
The quotations received shall be reviewed for technical
requirements and pricing and the acceptable quotations shall be
selected for bidding.
The requirement of materials, equipment and manpower shall be
estimated, in preparation of the package.

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Direct cost shall be estimated on Direct Cost Summary Sheet (Form:
CES/EST/008).
Indirect cost shall be estimated on Indirect Cost Summary Sheet
(Form: CES/EST/009)
5.4

COMMERCIAL PROPOSAL
Commercial proposal shall be prepared on the Bid Package Schedule
provided by the client or any other form as required by client.
Initial review of the proposal shall be made by the Estimation
Supervisor along with the concerned Engineers.
Final review of the proposal shall be made by the Estimation
Supervisor in consultation with the General Manager (Technical) in
consultation with the President.
Prior to the submission, the commercial proposal shall be approved
by CESCO the General Manager (Technical) or the President or in his
absence, the Operation Manager.

5.5

TECHNICAL PROPOSAL
Technical proposal shall be prepared if required as per terms of
contract.
Quality Manual or QA/QC Plan and procedure shall be normally
included in the technical proposal. Other contents shall be as
required in the tender document.

5.6

REVIEW OF CONTRACT
5.6.1 On award of contract, the contract scope shall be reviewed
for differences, if any, from the scope provided at the time of
tender. These reviewed for differences, if any, from the scope
provided at the time of tender. These reviews shall be recorded in
Contract Review Report. (Form: CES/EST/010). Variations, if any,
shall be notified to the client for resolution.
Resolutions reached with the client shall be recorded along with the
contract documents
If required, amendment to the contract shall be obtained.

5.7

AMENDMENT TO CONTRACT
5.7.1 Amendments to contracts may be received as either addition
or deletions to contract quantity or changes to the scope.

5.7.2 If the amendment is only addition or deletions this is

absorbed into the

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contract.
5.7.3 Amendment to contract requiring changes to scope shall be
handled in the same manner as the original tender
documents.
6.0

QUALITY FORMS AND RECORDS

6.1
Form: CES/EST/001 Active Bid (Lumpsum/SFC) updates
6.2
Form: CES/EST/002 Active Bid (SFC) Status Report
6.3
Form: CES/EST/003 Active Bids Weekly updates
6.4
Form: CES/EST/004 Submitted bids Weekly update
6.5
Form: CES/EST/005 Submitted PQ Weekly update
6.6
Form: CES/EST/006 Solicitation for proposal Weekly
Update
6.7
Form: CES/EST/007 Request For Quotation
6.8
Form: CES/EST/008 Estimation summary
6.9
Form: CES/EST/009 Indirect Cost
6.10 Form: CES/EST/010 Contract Review Report

SIGNATURE
PREPARED BY:

REVIEWED BY:

APPROVED BY:

DA