Today, we talk about spending money…with care, in Part 4 of our 7-part blog series which targets Purchasing.
The purchasing director will take the specifications for each item and translate them into a purchase order for the products. We recommend the preparation of a form called a Procurement Approval Sheet for each individual item to be purchased.
This form will include information such as the item description, vendor, lead time, quantity to be purchased, cost (including tax and freight), purchase order (PO) number, “tag,” and the desired delivery date and location.
In addition, the procurement approval form has a review signature block for the Architect (if required), User, Facility Management, and Purchasing Director to execute. Using this form and ensuring signatures are captured is of utmost importance.
Requiring the review of the products with all these individuals will make sure the decision to purchase is “vetted” and will: ensure the correct device is ordered (i.e., correct functionality for the user, correct “load” on the building verified by the architect, most cost effective/value acknowledged by the facility administration) and that changes and/or costly “upgrades” are reviewed by management prior to purchasing. Any change in originally designed equipment could be costly for several reasons: the actual equipment may be more expensive to purchase, the change typically prompts a costly professional review, the new equipment’s design may require structural changes to the new facility (electrical power needs, structural anchorage hardware, etc.).
Supplemental information such as specification sheets, vendor quotes, and change requests will further help to document the entire process.
Key word in purchasing: DOCUMENTATION.
