MEP Procurement

YARTEK FOR ELECTROMECHANICAL WORKS CONTRACTING LLCMEP PROCUREMENT RULES AND RESPONSIBILITIES

Effective Date: 03 October 2026 Department: Procurement, Estimation, Engineering, Projects, and Finance Applicable To: Head Office Staff, Project Engineers, Site Engineers, Storekeepers, and Other Employees Involved in Procurement

1. PURPOSE

The purpose of this policy is to establish a clear and systematic procurement process for all Mechanical, Electrical, and Plumbing (MEP) materials, equipment, tools, and services required for company projects.

All employees involved in procurement must comply with the procedures, approval requirements, and documentation rules outlined in this policy to ensure proper cost control, transparency, accountability, and timely material delivery.

1. GENERAL PROCUREMENT RULES

All employees must strictly follow these rules:

• No material shall be purchased without an approved material request or Purchase Request (PR).
• All material requests must specify the project name, project number, material description, quantity, required delivery date, and relevant technical specifications.
• Quotations must be obtained from suitable suppliers for price and technical comparison, wherever practicable.
• No employee is authorized to confirm an order, commit company funds, or instruct a supplier to proceed without the required approval.
• All purchases must be supported by an approved Purchase Order (PO), except where an authorized emergency procurement procedure applies.
• Materials must comply with the approved project specifications, drawings, and client requirements.
• Employees must not split purchase requests or orders to bypass approval limits.
• Personal purchases and unauthorized commitments on behalf of the company are strictly prohibited.
• All procurement documents must be properly recorded and maintained for reference, verification, and audit purposes.
• Any price variation, change in quantity, change in specification, or additional cost must be approved before proceeding.

1. ROLES AND RESPONSIBILITIESA. Project Engineer / Site Engineer

The Project Engineer or Site Engineer is responsible for identifying and requesting the materials required for project execution.

Responsibilities:

• Prepare accurate material requests based on approved drawings, BOQs, and project requirements.
• Verify material specifications, sizes, quantities, and technical compliance.
• Confirm that requested materials are required for the project.
• Provide the required delivery date and site delivery location.
• Coordinate with the site team regarding material requirements.
• Check delivered materials against the approved specifications and quantities.
• Report shortages, damages, incorrect materials, and delivery discrepancies immediately.
• Avoid duplicate requests and unnecessary material purchases.

Important: Site personnel must not independently commit the company to purchases without the required authorization.

B. Estimation Department

The Estimation Department is responsible for reviewing material requirements against the project BOQ, approved budget, and cost estimates.

Responsibilities:

• Verify material quantities and specifications against the BOQ and project scope.
• Check whether the requested items are included in the project budget.
• Identify potential cost variations or items outside the approved scope.
• Coordinate with Procurement regarding budgeted material rates.
• Report significant cost differences to the authorized manager.
• Ensure that procurement requirements are consistent with the approved project estimate.

C. Procurement Department

The Procurement Department is responsible for sourcing suppliers, obtaining quotations, negotiating prices, and coordinating approved purchases.

Responsibilities:

• Obtain supplier quotations based on the approved material request.
• Compare prices, specifications, quality, delivery periods, payment terms, and warranty conditions.
• Negotiate competitive prices and suitable commercial terms.
• Verify supplier availability and delivery commitments.
• Submit quotation comparisons and recommendations to the authorized approver.
• Prepare Purchase Orders only after the necessary approvals.
• Ensure that Purchase Orders contain the correct project details, specifications, quantities, prices, delivery terms, and payment conditions.
• Follow up with suppliers regarding order confirmation and delivery.
• Maintain an updated procurement register.
• Report price increases, delivery delays, and supplier issues to management.
• Ensure that no unauthorized order or purchase commitment is made.

Important: Procurement personnel must not approve their own purchases unless expressly authorized under the company's approval structure.

D. Procurement and Estimation Manager / Authorized Manager

The responsible manager must review procurement requirements, commercial comparisons, and budget implications within the assigned authority.

Responsibilities:

• Review quotations and price comparisons.
• Verify that proposed purchases are commercially reasonable and technically compliant.
• Review budget variations and additional costs.
• Approve or recommend purchases according to the company's authorization matrix.
• Resolve procurement issues between the site, estimation, procurement, and finance teams.
• Escalate significant cost variations or exceptional purchases to senior management.

E. Finance Department

The Finance Department is responsible for financial verification and payment processing.

Responsibilities:

• Verify supplier invoices against the approved PO, delivery documentation, and applicable payment terms.
• Check supplier account details and outstanding balances.
• Confirm payment availability and applicable financial approvals.
• Process supplier payments according to approved payment procedures.
• Maintain supplier payment records.
• Report discrepancies, duplicate invoices, and unsupported payment requests.
• Ensure that payments are not released without the required supporting documents and approvals.

F. Storekeeper / Material Receiver

The Storekeeper or designated receiving employee is responsible for recording and verifying incoming materials.

Responsibilities:

• Check delivered materials against the PO and delivery note.
• Verify quantities, item descriptions, and visible material conditions.
• Prepare or sign the Goods Received Note (GRN), where applicable.
• Record shortages, damaged goods, and incorrect deliveries.
• Inform Procurement and the responsible Engineer of discrepancies.
• Maintain accurate material receipt and stock records.
• Ensure that delivery notes and other supporting documents are submitted promptly.

G. Senior Management / CEO

Senior Management or the CEO is responsible for approving purchases that fall within their designated authority.

Responsibilities:

• Approve purchases requiring senior management authorization.
• Review significant budget variations, exceptional price increases, and unplanned expenditure.
• Approve exceptions to standard procurement procedures when justified.
• Review procurement performance and investigate unauthorized commitments or non-compliance.

1. PROCUREMENT APPROVAL PROCEDURE

The following procedure must be followed for all standard purchases:

Step 1: Material Request

The Project Engineer or Site Engineer submits a material request with complete technical details, quantities, project information, and required delivery dates.

Step 2: Technical and Quantity Verification

The responsible Engineer and Estimation Department verify the material specifications, quantities, BOQ requirements, and project scope.

Step 3: Supplier Quotations

Procurement obtains quotations from suitable suppliers and prepares a comparison for review.

Step 4: Commercial Review

The responsible manager reviews the quotations, negotiated prices, delivery terms, and budget implications.

Step 5: Purchase Approval

The purchase is submitted to the authorized approver according to the company's approval matrix.

Step 6: Purchase Order Issuance

Procurement issues the approved PO to the supplier and obtains confirmation of the order.

Step 7: Material Delivery

The receiving employee checks the delivered materials against the PO and delivery note.

Step 8: Document Submission

The supplier invoice, delivery note, GRN where applicable, and approved PO must be submitted to the designated department for verification and recordkeeping.

Step 9: Payment Processing

Finance verifies the supporting documents and processes payment after the required approvals.

1. PURCHASE ORDER RULES

The following rules apply to all Purchase Orders:

• Every PO must have a unique reference number.
• The correct project name and project number must be stated.
• Material descriptions, specifications, quantities, unit rates, and total amounts must be accurate.
• Applicable VAT and other charges must be clearly identified.
• Delivery location and required delivery date must be specified.
• Payment terms must be clearly stated.
• The PO must be approved before being issued to the supplier.
• Any amendment to an approved PO must be documented and approved.
• Verbal instructions must not replace the required written approval.
• Copies of approved POs must be maintained for procurement and finance records.

1. SUPPLIER QUOTATIONS AND PRICE NEGOTIATION

• Procurement must seek competitive quotations wherever practicable.
• Quotations must be compared on a like-for-like basis, considering specifications, quantities, quality, delivery, and payment terms.
• The lowest quotation must not automatically be selected if it fails to meet technical or commercial requirements.
• Any significant difference between the approved budget and supplier quotation must be reported before placing the order.
• Supplier price increases must be supported by a revised quotation or written confirmation.
• Negotiations must be documented, particularly where the supplier proposes a substantial price increase.
• Any change in the agreed price must receive the required approval before the supplier is instructed to proceed.
• Supplier selection must be based on documented business requirements and must not involve personal interests or unauthorized benefits.

1. INVOICE AND DELIVERY NOTE SUBMISSION

All employees responsible for receiving materials must comply with the following documentation requirements:

• The supplier invoice and delivery note must be collected on the same day the materials are delivered, wherever the documents are available.
• A copy of the invoice and delivery note must be shared in the designated company procurement group on the same day.
• Original documents must be submitted to the designated document controller or authorized employee, such as Md. Riad, in accordance with the company's internal procedure.
• No delivery document should be retained without a valid reason.
• Missing invoices, delivery notes, or discrepancies must be reported immediately.
• Employees must not confirm receipt of quantities or materials that have not actually been received or verified.
• All original documents must be properly filed and made available for Finance verification and audit.

Strict Requirement: Failure to submit procurement documents promptly may delay supplier invoice verification and payment processing. Repeated non-compliance must be reported to the responsible manager.

1. BUDGET CONTROL AND VARIATIONS

• Purchases must be checked against the approved project budget wherever applicable.
• Any increase in supplier pricing must be reviewed before order confirmation.
• Procurement must inform the responsible manager when a supplier's quotation exceeds the approved estimate.
• Additional quantities or materials outside the approved scope require documented justification.
• Cost variations must be recorded and approved by the authorized person.
• Procurement must not proceed based solely on verbal assurances that additional costs will be accepted.
• Significant or unbudgeted expenditure must be escalated to senior management.

1. EMERGENCY PROCUREMENT

Emergency purchases may be required to avoid project delays or address urgent operational requirements.

In such cases:

• The responsible Engineer must explain the emergency and provide the required material details.
• Approval must be obtained from the designated manager before committing the company, wherever practicable.
• If an exceptional emergency procedure is authorized, the reason, purchase amount, supplier, and approving authority must be documented.
• The formal PO and supporting documents must be completed as soon as practicable under the approved procedure.
• Emergency procurement must not be used to avoid normal approval requirements.

1. PROHIBITED PRACTICES

The following practices are strictly prohibited:

• Purchasing materials without the required authorization.
• Issuing a PO without approval.
• Instructing suppliers to proceed with unapproved work or deliveries.
• Accepting unauthorized price increases.
• Submitting duplicate invoices or delivery notes.
• Falsifying quantities, prices, delivery records, or material requests.
• Using company funds for personal purchases.
• Splitting orders to avoid approval limits.
• Failing to disclose material shortages or incorrect deliveries.
• Withholding procurement documents without justification.
• Accepting personal commissions, gifts, or benefits that create a conflict of interest.
• Making commitments on behalf of the company beyond one's delegated authority.

1. ACCOUNTABILITY AND NON-COMPLIANCE

All employees are responsible for complying with this policy and the company's approved procurement procedures.

Any unauthorized purchase, financial commitment, document discrepancy, or breach of the approval process must be reported to the responsible manager.

Management may investigate reported violations and take appropriate action in accordance with company policy and applicable UAE labour law.

No employee may independently impose a financial penalty or salary deduction unless such action is lawful and duly authorized.

1. PROCUREMENT RECORDS AND REPORTING

Procurement must maintain accurate records of:

• Material requests and approvals.
• Supplier quotations and comparison sheets.
• Approved Purchase Orders.
• Supplier order confirmations.
• Delivery notes and Goods Received Notes.
• Supplier invoices.
• Revised quotations and price negotiations.
• Purchase variations and additional costs.
• Supplier payment status.
• Outstanding orders and delayed deliveries.

The Procurement Department must provide regular updates to the responsible manager regarding pending orders, material shortages, delayed deliveries, price variations, and outstanding supplier documents.

Pay: AED3,500.00 - AED4,000.00 per month

Work Location: In person