Sample Purchase Order
Client: ______Page 23 of 23
Project Name: ______
Project Location: ______
Sample Purchase Order
To: / PO No.: / ______PO Date:
PO Value: / $00.00
Not to Exceed:
Currency: / US Dollars
Attn: / Agent’s Name: / ______
Phone: / Phone: / ______
Fax: / Fax: / ______
Email / ______
RFQ/REQ No. / ______
PROJECT DESCRIPTION: ______
DESCRIPTION OF PURCHASE: VENT GAS COMPRESSORS
BUYER’S AUTHORIZATION
Authorized Signature of Buyer Date Title
Please supply the materials, labor or services described under the heading “Description of Purchase”, subject to the conditions herein, Terms and Conditions of Purchase and all other attachments hereto (which by this reference are hereby made a part of this Purchase Order).
SELLER’S ACCEPTANCE
Seller to sign and return within ten days after receipt of this Purchase Order
Signature Date Title
Print name and title
This Purchase Order shall become a binding agreement of Seller and Buyer upon Seller signing and returning an acceptance copy of this Purchase Order without exceptions, or Seller commencing performance of this Purchase Order, whichever occurs first.
TABLE OF CONTENTS
Article Description Page No.
1.0 CONFIRMING NOTE 3
2.0 DEFINITIONS 3
3.0 COMMUNICATIONS 3
4.0 COMMERCIAL NOTES 5
5.0 TERMS OF PAYMENT 6
6.0 INVOICING INFORMATION 6
7.0 TAXES 7
8.0 SCHEDULE & REPORTS 8
9.0 DOCUMENTATION 9
10.0 SELLER’S QUALITY PLAN REQUIREMENTS 9
11.0 TRAFFIC & LOGISTICS 12
12.0 PROJECT MANAGER/EXECUTIVE SPONSOR 16
13.0 FIELD SERVICES 16
14.0 SPARE PARTS REQUIREMENTS 19
15.0 BACKCHARGES AND REWORK 20
16.0 PREVENTATIVE MAINTENANCE/STORAGE 21
17.0 CERTAIN LAWS, REGULATIONS & STANDARDS 21
18.0 SUB-SUPPLIERS & SUBCONTRACTORS 22
19.0 CONFLICTS IN THE DOCUMENTS 22
20.0 MODIFICATIONS TO TERMS AND CONDITIONS OF PURCHASE 22
21.0 ATTACHMENTS 23
For this project Seller shall supply the materials, labor or services described under the heading "Description of Purchase", subject to the conditions herein, Terms and Conditions of Purchase and all other attachments hereto (which by this reference are hereby made a part of this Purchase Order Master Document and all attachments thereto).
This Purchase Order shall become a binding agreement of Seller and Buyer upon Seller signing and returning an acceptance copy of this Purchase Order without exceptions, or Seller commencing performance of this Purchase Order, whichever occurs first.
AS A CONDITION OF PAYMENT, SUPPLIER MUST SIGN AND RETURN THE ACCEPTANCE COPY OF THE PURCHASE ORDER WITHIN 10 DAYS OF RECEIPT OF THE PURCHASE ORDER.
1.0 CONFIRMING NOTE
Confirming Buyer’s commitment to Seller’s ______by ______on
______.
2.0 DEFINITIONS
The word “Owner” wherever used in this Purchase Order shall mean ______.
The word “Buyer” wherever used in this Purchase Order shall mean ______.
The word “Agent” whenever used in this Purchase order shall mean ______, Acting as Agent on behalf of ______
The word “Seller” wherever used in this Purchase Order shall mean ______(State full name of successful bidder).
The word “Construction Manager” or “Construction” wherever used in this Purchase Order shall be supplied at a later date.
COST CODE:AREA/UNIT:
3.0 COMMUNICATIONS
Agent shall be the sole and exclusive administrator of this Purchase Order, and all communications of Seller shall be directed to the Agent.
Direct all Communications whether commercial or technical to:
MAILING ADDRESS:
Project No.: ______
Project Name: ______
Purchase Order No: ______
Mail all engineering data submittals to:
Note: All drawings & technical data shall be submitted in accordance with the submittal requirements as stated in its specifications and sent to the above address.
3.1 Both Agent and Seller shall transmit all documentation for Agent approval/review by electronic format. In instances where transmittals via courier services are required, there will be no cost to either party. Use of regular mail services will not be considered as proof of receipt of documentation for Agent approval/review. No courier or mail deliveries shall be made on a “collect” basis.
Invoices and all supporting documents shall be transmitted via e-mail (electronic) method with hard copy original to follow via courier to:Sold To/Bill To: ______.
Attn: ______, Project Director
______
Mail InvoiceTo: ______.
Attn: ______, Project Director
______
Telephone Number: ______
Fax Number: ______
E-Mail Invoice To: ______.
Attn: ______, Project Director
E-Mail: ______
______(Agent)
Attn: ______
E-mail: ______
Project No. ______
PO No. ______
Seller’s Contacts: (Bidder to Complete)
Project Manager (name, phone, e-mail):
Executive Sponsor (name, phone, e-mail):
Shop Order No. (if available):
Shop Contact (name/phone):
Spare Parts Contact (name/phone):
Warranty Contact (name/phone):
Field Service Contact (name/phone):
Fabrication address(es): List location(s) where the manufacture of major sub-components are outsourced by Supplier
______
______
______
Attn: ______
Phone: ______
Email: ______
4.0 COMMERCIAL NOTES
4.1 Pricing Notes
4.1.1 Prices detailed in this Purchase Order are fixed, firm and free of escalation or any currency rate fluctuation through to completion of the Purchase Order, unless agreed and shown otherwise in this Purchase Order.
4.1.2 The cost of all drawings, documentation, installation manuals, shop inspection, shop testing, NDE reports, test certificates and code data books as specified herein is included in the prices detailed in this Purchase Order.
4.2 Free Issued Material/Equipment
Seller shall acknowledge receipt of all materials and/or equipment furnished to Seller by Buyer for its packaging or assembly into a "complete package". It is specifically understood and agreed that title to all said items furnished by Buyer shall remain with Buyer at all times regardless of whether said items are incorporated into material or equipment being constructed hereunder and whether said items remain separable or not. Said items can at any time be reclaimed and repossessed by Buyer. Seller maintains and is responsible for all care and custody of free issued material/equipment.
4.3 Material Substitutions
Seller shall make no material substitutions without prior written authorization of Agent.
4.4 Warranty
Warranties are effective with start date of ______. Pricing for extended warranties are:
36 months ______48 months ______.
4.5 Tagging & Equipment Identification
All equipment shall be properly identified with stainless steel tags permanently affixed to each item or equipment assembly by the Seller. THE INFORMATION REQUIRED ON TAGS IS IDENTIFIED IN THE TECHNICAL DOCUMENTS. For items not specifically identified, the minimum information which shall be contained on the tag is the purchase order number, equipment tag number, date of manufacture, seller’s name, model number, serial number.
5.0 TERMS OF PAYMENT
5.1 Terms of Payment for this Purchase Order are Net 45 Days from receipt of complete and correct invoice.
5.2 The Owner agrees to pay the Seller for the performance of the Work upon receipt of audited and released invoice by Agent for that Work. Agent shall have no obligation, legal, equitable or otherwise to pay Seller for Work under this agreement.
5.3 Progress Payments (If applicable)
6.0 INVOICING INFORMATION
6.1 In order to process Seller’s invoices for payment, Agent must be in receipt of the signed Seller’s unconditional acceptance of this Purchase Order and/or Change Order(s).
6.2 If Seller requires payment be made by wire transfer Seller shall include the following wire transfer information for each invoice:
Bank Name
Bank address
ABA Number (9 digit #)
Bank Name
Bank address
Swift Code
6.3 Any of the following conditions will be considered just cause for withholding payment and/or returning invoices to Seller without loss of applicable discount privileges, if applicable:
· The specified number of copies of the Seller’s invoice has not been received.
· The invoice, packing list and/or Purchase Order do not agree in all respects.
· Errors or omissions have been made in the Seller's invoice.
· Wire transfer instructions are not included on the invoice (if applicable).
· Agent not in receipt of signed Seller’s acceptance of this Purchase Order.
· Agent not in receipt of Seller data required in this Purchase Order.
6.4 Invoices must include the following information:
· Buyer's Purchase Order Number
· Purchase Order Tag Numbers for Each Item on the Invoice
· Quantity for Each Item
· Material Description
· Net Price per Item
· Extended Total Value for the Quantity Invoiced
· Payment Terms
· Signed Bill of Lading for Shipped Goods, if applicable
· Packing List, if applicable
· Progress Payments – Description of Milestone payment and documented proof milestone has been met.
6.5 Combining two or more of Buyer's Purchase Orders on one invoice is not acceptable.
6.6 Correct invoices must be received by Fluor no later than the 20th of the month in order to be processed in that current month’s billing. Invoices received later than the 20th of the month may be held for processing during the next payment period.
6.7 A signed Bill of Lading or Forwarders Certificate of Receipt must accompany the invoice as proof of shipment.
6.8 Buyer will make payment only to Seller shown on the face of this Purchase Order unless Seller's written instructions to the contrary are received by Buyer and incorporated into this Purchase Order.
6.9 Unauthorized billing for component parts of an item will not be accepted. Partial quantities of complete units are acceptable; e.g., 10 of a total of 50 units.
6.10 Buyer reserves the right to refuse payment, without loss of cash discount, on invoices for charges not previously authorized in writing by Buyer.
6.11 Where inspection is required, all final invoices shall be supported by a Surveillance Release Form which will be issued by inspector upon final inspection/acceptance.
6.12 Final payment may be held pending resolution of back-charges. Costs accumulated due to back-charges will be unilaterally deducted from any amounts owed Seller.
6.13 The final invoice against this Purchase Order shall be marked “Order Complete.”
6.14 Order Completion Retention Provision
Seller’s performance of its obligations hereunder will not be considered complete until Agent is in receipt, in proper form, of all engineering data requirements, drawings, parts, spare parts list and instruction manuals.
Buyer reserves the right to withhold payment of final invoice (or portion thereof) pending satisfactory receipt of all documentation called for in the Purchase Order.
7.0 TAXES
7.1 Tax status to be resolved before package is awarded.
7.2 IRS Form 1099 Reporting
Seller is required to obtain correct taxpayer identification numbers from all non-incorporated payees, who receive payment for services, rents, royalties or interest that would be subject to IRS Form 1099 reporting. Thirty-one (31) percent back-up tax withholding will be imposed on all Form 1099 reportable payments made to Seller if Seller fails to provide a correct taxpayer identification number.
TAXPAYER IDENTIFICATION NUMBER ______
8.0 SCHEDULE & REPORTS
8.1 Shipment/Delivery
Based on purchase order award date of: ______
Submit drawings for review: ______(Weeks ARO)______
Agent returns review drawings______(Weeks ARRD)______
Submit certified drawings: ______(Weeks ARRD)______
Ready to Ship: ______(Weeks ARRD)______
Estimated Time of Arrival:______
Required at Site (RAS): ______
LEGEND: ARO means After Receipt of Order; ARRD means After Return of Reviewed Drawing
Seller shall take all necessary steps to ensure that the materials detailed in this Purchase Order are delivered or shipped by the date(s) stated herein. Seller shall notify Agent ten (10) working days prior to shipment.
8.2 Progress Reporting
Within ten (10) working days after Purchase Order award, Seller shall submit a legible reproducible copy of the engineering, material procurement and fabrication schedule established by this Purchase Order and/or change orders hereto. As a minimum, this schedule shall include the following:
8.2.1 Engineering schedule containing Seller’s drawing submittal dates and desired return dates.
8.2.2 Material procurement schedule containing Seller’s suborder dates, sub-supplier’s name and expected material delivery dates.
8.2.3 Fabrication schedule containing:
· Start of fabrication dates
· Starting and completion dates of all major steps during fabrication
· Shipping date(s)
Seller shall thereafter submit regular progress reports showing actual progress against planned progress dates and shall detail specific or potential problems of which Agent should be made aware. The frequency of the report shall be determined by duration and complexity of the Purchase Order, but in no case be less frequent than every fourteen days, until final delivery of the equipment/material. Once Agent has accepted the schedule, the dates and milestones reflected therein shall become contractually binding upon Seller. In the event of a schedule change, Seller must immediately advise Agent by phone, fax or e-mail to Agent (and confirm phone conversation by fax or e-mail), stating the reason for the schedule change, and Seller's proposal to redeem the original schedule or minimize any delay. Seller’s proposal shall show applicable item number(s) or identifying marks.
Upon Agent request Seller shall furnish un-priced copies of each Purchase Order issued to its major sub-suppliers for materials or equipment on this Purchase Order, at the time of sub-order placement.
Agent reserves the right to contact Seller's Sub-suppliers to determine the status of work being performed by the Sub-supplier.
9.0 DOCUMENTATION
Any review or approval of data or documentation submitted by Seller to Agent shall not relieve Seller of the responsibility for the accuracy of documentation or data, or compliance with all requirements of the Purchase Order.
10.0 SELLER’S QUALITY PLAN REQUIREMENTS
10.1 Seller’s Quality System Requirements (Criticality Ratings 1 and 2)
10.1.1 Quality System Requirements
Seller shall operate a quality management system which meets the requirements of the applicable international quality system standard appropriate to the contracted scope of work throughout the duration of this Purchase Order.
Seller acknowledges full compliance unless Seller submits details of any proposed alternative quality systems standard at the bid stage or identifies areas of non-compliance with any part of the quality standard selected, and such proposed alternate or areas of non-compliance are accepted and included in this Purchase Order.
Agent reserves the right to evaluate and audit the implementation of the quality system with the agreement and participation of Seller.
Agent reserves the right to request Seller to provide formal records or certificates for any activity associated with Seller's quality system.
All documentation shall be in the original source state or a true copy of the original. Copies shall be of reproducible quality or considered unacceptable. Data transposition from the original is not acceptable.