WAREHOUSING

This policy defines the responsibilities and establishes the guidelines and procedures to be
followed by Head Office, HO Warehouse and all project warehouses with regard to the
receipt, issuance, delivery and proper warehousing of all inventory items.

Receiving of Items Delivered

1. All materials, supplies and equipment received from suppliers, HO Warehouse, other
projects and project owners shall be covered by Receiving Report (RR). All Receiving
Report shall be prepared on the same day the item is delivered. For Head Office, the
Purchasing Manager or his delegate shall be responsible for receiving the delivered
items. For project sites and HO WAREHOUSE, the warehouseman shall be responsible
for receiving the delivered items.
2. The correctness of each delivery (quantity, price/cost and specifications) should be
compared against its supporting documents (PO and DR) prior to acceptance of
goods and issuance of RR.
3. For deliveries that require technical inspection, it shall be the responsibility of the Project
Manager to assign a QA inspector to check the items delivered prior to acceptance.
For regular deliveries or deliveries that do not require technical inspection, the
Warehouseman shall act as the QA inspector.
4. The Project Manager shall approve all receipts of materials/supplies/equipment by
signing on all copies of the RR. Accounting shall not process RR’s without the signature
of the Project Manager.
5. RR’s are pre-numbered accountable forms to be issued and controlled by HO
Accounting. Accounting shall check the numerical sequence of RR’s and shall
investigate missing numbers immediately.
6. Distribution of RR copies shall be as follows:

a. Original copy - Project Accountant (to be attached to APV)

b. Pink copy - Project Accountant (master file)
c. Yellow copy - Project Warehouse
d. Blue copy - HO Purchasing Department

7. The pink copy of the RR shall be the basis of the Project Accountant in recording to the
RR register while the yellow copy shall be the basis of Warehouse in recording to the
stock cards.

8. The blue copy of the RR shall be forwarded to the HO Purchasing Manager on a

regular basis (at least weekly). HO Purchasing shall compare the RR against the
covering PO. It shall be the responsibility of HO Purchasing to immediately chase
unserved orders, particularly those with partial or full payment.
9. All pink copy of the RR (Project Accounting File) shall be temporarily forwarded to the
Project Engineering and Control Head on a daily basis (every morning) to facilitate
monitoring of project material status and accomplishment. The same shall be returned
to Accounting File within 24 hours.

Requisition of Materials / Supplies

1. All requests of materials and supplies from warehouse to project operations shall be
covered by Material Requisition Slip (MRS).
2. The MRS form shall be prepared by someone of responsibility not lower than foreman
level. All MRS forms shall be noted by Engineering and Control Head, and approved by
the Project Manager. The Project Manager may delegate his approving authority to
the Construction Manager as needed.
3. All MRS forms shall be cost coded by the Project Engineering and Control Section
(Office Engineer). The Warehouseman shall not process MRS with no cost code. In the
absence of the Office Engineer, the Project Manager shall be responsible to delegate
the cost coding input to any of his senior engineering staff.

Issuance of Materials / Supplies

1. All issuances of materials and supplies from warehouse to project operations shall be
covered by Material Issue Slip (MIS).
2. MIS’ are pre-numbered accountable forms to be issued and controlled by HO
Accounting. Accounting shall check the numerical sequence of MIS’ and shall
investigate missing numbers immediately.

3. Distribution of MIS copies shall be as follows:

a. Original copy - Project Accountant

b. Pink copy - Project Warehouseman
c. Yellow copy - Office Engineer
d. Blue copy - HO Warehouseman

4. The original copy of the MIS shall be the basis of the Project Accountant in recording to
the MIS register while the yellow copy shall be the basis of Warehouse in posting to the
stock cards.
5. The blue copy of the MIS shall be retained by the HO Warehouseman if the items issued
involve HO transactions. For internal project issuances, the blue copy shall be retained
by the project warehouseman.
6. The yellow copy of the MIS shall be forwarded to the Office Engineer on a daily basis
(every morning) to facilitate monitoring of project material status and accomplishment.
Issuance of Personal Protective Equipment (PPE)

All employees exposed to the hazards of construction operations shall be protected by the
Company from such hazards through the issuance of appropriate PPE.

1. Issuances of PPE from warehouse to project operations shall be covered by Material

Issue Slip (MIS). However, other multi-user and semi-expendable PPE such full body
harness, safety belt, face shields, welding goggles and the like shall be covered by Tool
Vale Receipt (TVR).
2. As a general rule, all project-based employees exposed to the hazards of the project
are entitled to hard hat and safety shoes at the minimum issuance. The Project
Manager, in coordination with the ESH Officer shall determine who among the
employees are entitled to hard hat and safety shoes.
3. Qualified project-based employees are entitled to one hard hat and a pair of safety
shoes per year (for regular employees) and one hard hat and a pair of safety shoes
per project (for contractual employees).
4. Cost of hard hat and safety shoes issued to contractual employees shall be free of
charge provided the original employment period is completed by the contractual
employee. If the contractual employee resigns before the expiration of his original
employment period the same PPE shall be deducted from his salary (no need to return
the hard hat and safety shoes).

5. Issuance of expensive brands of safety shoes (King’s, etc.) shall be limited to regular
employees and senior contractual staff (project department heads per approved
table of organization). The regular/ordinary brand of safety shoes shall be issued to the
rest of the qualified employees.
6. In case of loss or damage due to misuse/negligence, the cost of the replacement hard
hat or safety shoes shall be deducted from the salary of the concerned employee. This
applies to both regular and contractual employees.
7. Other PPE such as spectacles, ear plugs, rain boots, rain coats, dust masks, shall be
provide free of charge as and when needed by the employee.
8. All subcontractors shall be required to provide their own PPE in accordance with the
requirements of the company and Client. In case the subcontractor requests the
company for assistance in the supply of PPE, the same shall be automatically
deducted from the subcontractor’s next billing. All issuances of PPE (of whatever kind)
to subcontractors shall be chargeable. No free issuances.
9. All purchase requisitions for hard hat and safety shoes shall be coursed through the HO
Safety Department for validation and control. Ensuring compliance to this policy is
therefore the primary responsibility of the IMS Department.

Delivery of Materials, Supplies or Equipment

1. All materials/supplies/equipment leaving Company premises shall be covered by

Delivery Receipt (DR). This is important in order to monitor the movement of tangible
assets and to prevent loss of company property.
2. Specifically, the DR shall be prepared to document the following:
 a. Delivery of materials/supplies/equipment from CETD to project and vice versa.
b. Transfer of materials/supplies/equipment from within company premises.
c. Return of excess owner-supplied materials.
d. Delivery of equipment and tools to outside shop for repair.
e. Disposal of scrap materials.

3. The Project Manager shall approve all DR’s emanating from the project site. The ETD
Manager shall approve all DR’s from HO WAREHOUSE. The Purchasing Manager or
Accounting Manager shall approve all DR’s borne from the Main Office. Accountants
shall not process DR’s without the signature of the concerned approving party.
4. DRs are pre-numbered accountable forms to be issued and controlled by HO
Accounting. Accounting shall check the numerical sequence of DRs and shall
investigate missing numbers immediately.
5. Distribution of DR copies shall be as follows:

a. Original copy - Accounting Department

b. Pink copy - Receiving Unit - Master File c/o Accounting
c. Yellow copy - Receiving Unit - Warehouse File
d. Blue copy - Receiving Unit - User’s File

6. The original copy of the DR shall be the basis of the Accounting Department in
recording to the DR register while the yellow copy shall be the basis of Warehouse in
posting to the stock cards.

Maintenance of Stock Cards

1. All warehouses shall maintain stock cards for all inventory items. Bases of posting to the
stock cards shall be the RR for receipts, and the MIS and DR for issuances.
2. Based on the stock cards, a monthly inventory report/listing shall be submitted to HO
Accounting on or before the 10th day of each month using the 25th as cut-off date.
3. A regular cycle count should be jointly conducted by the Project Accountant and
Warehouse Head to verify the accuracy of the stock card balances. Any discrepancy
(stock card versus physical count) should be immediately reported to Internal Audit for
proper investigation and resolution.

REQUISITION AND ISSUANCE OF TOOLS

This policy establishes the guidelines and procedures to be followed with regards to the
requisition and issuance of tools and light equipment. This aims to pinpoints responsibility
and accountability in case of loss or damage due to improper use or negligence, and
ensures that tools are used solely for the pursuit of duties in connection with Company
objectives.
1. Tools are defined as semi-expendable supplies and light equipment used in the pursuit
of construction operations.
2. Tools are the primary responsibility and accountability of the Warehouseman and Tool
Keeper. These employees shall be held jointly responsible for all unaccounted tools
upon project completion.
3. Tools can only be borrowed by a Company employee for use in his official duties.
Borrowing shall be authorized with the submission of a properly accomplished Tool Vale
Receipt (TVR) which shall be the basis of issuance by the Tool Keeper.
4. The TVR shall be prepared in three (3) copies for distribution as follows:

a. Original - Tool keeper

b. Duplicate - Borrower
c. Triplicate - 201 file of Borrower

5. As a general rule, tools shall be issued out at the start of the working day and should be
returned to the Tool keeper for safekeeping before the borrower goes out at the end of
his working hours. The TVR shall cover temporary issuance of these items. In cases where
overtime is authorized, borrowed tools shall be returned on the following working day.
This is to avoid loss or damage if items are left unattended in working areas.
6. The Tool keeper shall maintain an updated Borrower’s Card for each borrower. The TVR
shall serve as the basis for posting into this card.
7. Items unreturned for five (5) consecutive working days shall be considered lost and the
cost thereof shall be automatically deducted from the salary of the borrower.
8. Accountability for tools is non-transferable. Hence, the actual user shall be required to
sign receipt thereof on the TVR. This is important in view of the rampant practice
among supervisors and foremen to delegate the actual withdrawal of tools to low-level
workers like laborers and utility personnel.

9. Lending of tools and equipment to subcontractors and other third parties shall have
the written authorization of the Project Manager on the TVR and shall be subject to pre-
determined rental charges, unless free of charge per subcontract agreement. Cost to
subcontractor must be deducted from his immediately succeeding billing. In case of
loss or damage, basis of charging to the subcontractor shall be the acquisition cost of
the item.