Procurement Guide
3.1.12 If you need to attach quotes, emails or other documents to the purchase order to adhere to the purchasing delegations and enable the release of the order, click on the Attachments option, which can be found on the left hand side in the blue menu. Please refer to the diagram below.
3.1.12.1 Click on the paper clip on the right-hand side of you screen which will allow you to browse for your document, please refer to the diagram below.
3.1.12.2 Once you have found the required document, double click and it will upload onto the screen.
Procurement Guide
3.1.13 Once the purchase order is complete and all the required information has been entered and attached, click on Submit for Approval which can be found in the left hand side blue menu. Please refer to the diagram below.
3.1.14 A box will come up with your default Coordinator or Manager’s name, however if that name needs to be changed to follow the Purchasing Delegations, click on the magnify glass and a list of all Council officers will appear. Double click on the correct name then click on OK. Please refer to the diagram below.
Procurement Guide
Procedure – How to complete a Contract Payment Summary
1. Purpose and Scope
The purpose of this procedure is to ensure Council officers complete the required payment documentation throughout a contract period.
The procedure applies to Council officers who are responsible for the management of a Capital Works and/or lump sum contract.
2. Definitions
Responsible Officer – The staff member who will be managing the contract for services or works.
Finance One – Software for raising purchase orders
Purchase Order – A documented request to a supplier for provision of works/goods/services
ITT – Invitation to Tender CEO – Chief Executive Officer
Procurement Guide
3. Procedure
3.1 Once the contracts have been signed and sealed by the CEO
3.1.2 The Procurement Administration Officer will complete a purchase order and payment summary for the specific contract.
3.1.3 A contract folder will be given to the Responsible Officer with a copy of the purchase order. A link to the payment summary will be emailed to the Responsible Officer by the Procurement Administration Officer.
3.2 Filling out a claim sheet
3.2.1 The Responsible Officer will receive a tax invoice from the contractor for the works completed for the month.
3.2.1.1 Before the tax invoice is given to Accounts Payable, a completed payment summary must be attached to enable processing and payment of the invoice.
3.2.2 Open the payment summary which will have a file name CON XXXXX – description of contract.
3.2.3 The payment summary will have many sheets along the bottom of the screen, however the only sheets the Responsible Officer is required to complete are Claim b sheets.
3.2.4 When opening the payment summary for the first time it should open up to sheet Claim 1a, which will show you the total contract sum, purchase order number and the specific ledger code number.
3.2.5 After making sure the information is correct in Claim 1a, click on the tab labelled Claim 1b. This will have a list of all the works and the contracted prices that the Procurement Administration Officer has entered from the successful tender submission. The only areas the Responsible Officer is required maintain on this sheet are % Complete or Quantity/Area Complete, Provisional items and Variations.
3.2.5.1 The Responsible Officer is required to maintain either the % Complete column with a percentage, or the Quantity/Area Complete of the works that have been completed for the month. A figure exclusive of GST will appear in the Total Values column.
Procurement Guide
3.2.5.3.1 A Variation Form should have been completed by the Responsible Officer, prior to the variation works proceeding. For further information please refer to the Variation Procedure page 31.
3.2.5.4 Once all the information is entered a total payment amount will result at the bottom of the sheet which should match up to the amount owing on the tax invoice supplied by the contractor.
3.2.5.5 All the information supplied in sheet Claim 1b should be reflected in sheet Claim 1a, therefore print off Claim 1a and attach it to the contractor’s tax invoice.
3.2.5.5.1 Ensure Claim 1a is signed by the Responsible Officer, General Manager and then given to the Procurement Administration Officer to review.
3.2.5.5.2 The Procurement Administration Officer will check the payment summary against the original contract details, initial Claim 1a and pass it to Accounts Payable for processing and payment of the invoice.
3.2.6 The same process is to occur for all invoices received from the contractor for the specific Capital Works and/or lump sum contract, the Responsible Officer uses the next Claim b sheet for each subsequent payment,
ie: claim 2, use sheet 2b, claim 3, use sheet 3b etc.
3.3 Final payment
3.3.1 When the tax invoice for the final payment of the contract is received from the contractor, the final payment claim b sheet is to be completed and the process in 3.2 followed.
3.3.2 If the contract included a bank guarantee, the Responsible Officer must authorise the release of the guarantee by emailing Council’s Legal Officer, giving details of the bank guarantee, contractor and contract number.
3.3.3 If the contract was a lump sum contract, an email to the Purchasing Officer to advise that any remaining funds on the purchase order are no longer required, will authorise the order to be closed.
Procurement Guide
Procedure – Variation/s to Contracts
1. Purpose and Scope
The purpose of this procedure is to ensure Council Officers adhere to the purchasing and variation delegations outlined in the Local Government Procurement Best Practice Guidelines, and the Latrobe City Council Procurement Policy 09 POL-1.
The procedure applies to Council Officers who are responsible for the management of a Capital Works and/or lump sum contract.
2. Definitions
Responsible Officer – The staff member who will be managing the contract for services or works.
Finance One – Software for raising purchase orders
Purchase Order – A request to a supplier for provision of works/goods/services which is raised in Finance One
ITT – Invitation to Tender
GM – Division General Manager CEO – Chief Executive Officer
Procurement Guide
3. Procedure
3.1 Variation to a contract
3.3.4 The Responsible Officer in discussion with the Contractor, have determined that a variation to the contract is required, however the works relating to the variation cannot commence until the following procedure is complete.
3.2 Approval of a variation
3.2.1 The Variation Form can be downloaded from the intranet to commence the process.
3.2.2 The Responsible Officer is required to complete the areas highlighted in green.
3.2.3 The completed Variation Form must then be given to the Procurement Administration Officer who will process the variation in accordance with the delegations below.
3.2.4 If the variation exceeds the terms and conditions as stated in (a) and (b) below, the Procurement Administration Officer will then compile a report to the CEO. The Responsible Officer is required to provide details for this report pertaining to; the reasons the variation is deemed necessary, and the financial implications of the variation.
VARIATION AMOUNT PROCESS APPROVAL
(a) Approval of contract variations where:
- the total amount of the variations together with the original contract amount will not exceed $200,000 (including GST), and;
- each single variation is less than $10,000 (including GST) and;
- the total variations are less than $20,000 (including GST).
Variation form to be completed and signed by the General Manager and supplied to the
Procurement Officer
General Managers/Direct Reports to CEO (except for the Coordinator Executive Office)
(b) Approval of contract variations where:
- the total amount of the original contract (including GST) exceeded $200,000, and;
- provided each single contract variation does not exceed 7.5% (including GST) of the original contract value and;
total variations are less than 10% of the original contract value (including GST).
Variation form to be completed and signed by the General Manager and supplied to the
Procurement Officer
General Managers/Direct Reports to the CEO (except for the Coordinator Executive Office)
(c) Approval of contract variations, where they exceed the extent of authority as outlined in (a) and (b).
Variation form to be completed, signed by the General Manager and supplied to the Procurement Officer to enable a report to be provided to the CEO by Procurement, detailing the reason/s and financial implication of the variation
Chief Executive Officer
A report to be provided to Council as soon as practicable noting the contract variations.
Procurement Guide
3.2.5 Once the GM or CEO has approved the variation, the Procurement Administration Officer is required to do the following;
3.2.5.1.1 Include the approved variation in a Contract Activity report to inform Council of the decision that has been made.
3.2.5.1.2 Amend the purchase order to add the variation as a new line with variation X as the description, and the amount being inclusive of GST.
3.2.5.1.3 Scan and attach the signed Variation Form and CEO report if applicable, to the purchase order.
3.2.5.1.4 Save the signed Variation Form and CEO report if applicable, in the relevant ITT folder.
Procurement Guide
Tendering Checklist for Responsible Officers
COMPILING THE TENDER DOCUMENT
Provide the Procurement Administration Officer with the following items;
- Tender Initiation Form with the Capital Expenditure Authorisation section completed, if required - Tender Specification
Read the draft tender document as provided by the Procurement Administration Officer, noting any changes to be made
Email the Procurement Administration Officer with any changes to the document and confirm advertising method and dates
DURING THE TENDER ADVERTISING PERIOD
Contact preferred contractors, inform them of the tender and the link to the etendering portal on Latrobe City Council’s website
Respond to potential tenderers questions in a timely manner, providing responses to the Procurement Administration Officer to upload onto the etendering portal
WHEN THE TENDER CLOSES
The following will be given to you as soon as practicable following the close of the tender;
- Memo of instructions and deadlines - Tender evaluation matrix
- Copies of all tender submissions TENDER EVALUATION MATRIX
All criterion need to be scored accordingly and comments regarding the scoring noted on the reporting questionnaire (these comments will be used to compile the CEO or Council report) Complete reference checks for contractors that are unknown to Responsible Officer
ONCE THE REPORT HAS BEEN APPROVED BY COUNCIL
Provide the following details to the Procurement Administration Officer:
- Any correspondence/documentation referring to changes to the contract; and - Confirmation of start dates or vacant possession dates for the works
The Procurement Administration Officer will provide you with a folder with the following enclosed:
- A copy of the contract document to be used as a working file
- A bound copy of the contract to be used as the Responsible Officer’s master copy - A purchase order for the works, if applicable
