PROJECT PURCHASING AUDIT CHECKLIST

PROJECT PLANNING AND START-UP

1. Have project purchasing procedures been approved by senior management?

2. Has a project purchasing execution plan been developed? If Not:

a. Does the size of the project justify a formal purchasing execution plan?

i. If Yes, Who is responsible and when will the plan be completed?

ii. If Not, Does Project Purchasing Personnel have the knowledge and

experience required to properly plan and execute required activities?

3. Is there a purchasing execution plan approved by senior management and project

management?

4. Have special prime contract requirements (flowdowns) been incorporated into the

project special conditions for purchase orders and subcontracts?

5. Have the special conditions been approved by the Company Legal Personnel?

6. Are there any special tax liabilities or reporting procedures required for materials,

equipment, and services?

7. Are there any special insurance liabilities that need to be passed on to vendors and

subcontractors visiting or working at the job site?

8. Has a written QA/QC inspection plan been issued by engineering and approved by

management?

9. Have workhour budgets been established for the purchasing staff?

a. Is the workhour budget being tracked and reported as expended versus

percent complete?

10. Does purchasing have the latest revisions of:

a. Major Equipment list?

b. Instrument index?

c. Motor list?

d. Does purchasing have the control budgets for these items?

e. Does purchasing have the control budgets for bulk materials?

f. Is a system in place to ensure that purchasing receives revisions and updates

as they are issued?

11. Does purchasing have a list of authorized persons to submit requisitions and their

signatures on file?

PROJECT PURCHASING AUDIT CHECKLIST 12. Is there a project or client-approved bidders list?

13. Does purchasing have the project schedule?

14. Is there a purchasing schedule?

15. Is purchasing included in the specification engineering office checks?

16. Does the project distribution matrix cover purchasing documents and supplier

quotations?

17. Are computer hardware and purchasing status and tracking systems in place?

18. Does purchasing personnel have proper computer training in the purchasing

systems?

PROJECT EXECUTION

1. Does the purchasing status and tracking systems track the following:

a. Specifications?

b. Equipment tag numbers?

c. Requisitions?

d. Inquiries to suppliers?

e. Bids due from suppliers?

f. Bids received from suppliers?

g. Completion of commercial evaluation?

h. Completion of technical evaluation?

i. Issue to management/client for approval?

j. Return of management/client approval?

k. Receipt of written purchase approval?

l. Purchase order issued?

m. Vendor data submission requirements?

n. Vendor QA/QC shop inspection requirements?

o. Submission of approval data by vendor?

p. Complete approval data received?

q. Return of approved data?

r. Complete certified data received?

s. Shipping date?

t. Arrival date?

PROJECT PURCHASING AUDIT CHECKLIST u. Field need date?

v. Float?

2. Are purchasing personnel responsible for expediting vendor data and deliveries?

a. If so, has the expediting audit checklist been used to evaluate purchasing

personnel expediting processes?

3. Is an Inquiry Register / P. O. Log used to control purchase order numbers and track

commitments?

4. Are all commitments versus budgets reported monthly to senior management?

5. Does the Inquiry Register / P. O. Log cross reference and track all requisition

numbers and purchase order numbers?

6. Are the online systems kept current within two or three working days?

7. Are vendor shop inspections being done as planned?

8. Is purchasing tracking workhour budgets and travel budgets against percent

complete?

9. Is purchasing tracking commitments against:

a. Architectural budgets?

b. Equipment budgets?

c. Bulk material budgets?

d. Motor budgets?

e. Instrument budgets?

10. Does purchasing formally notify project management when an item is forecasted to

exceed its budget?

11. Are pre-award or award meetings held for complex purchases and subcontracts?

12. Are sole-source orders approved and documented in the purchase order file?

13. Is there a documentation checklist in each purchase order file?

14. Are purchase order files secure?

15. Do the purchase order file numbers correspond to the status and tracking registers?

16. Are they filed sequentially?

17. How are purchase order files checked out so they are easily traceable to the persons

who have the files?

18. Are required approvals and signatures in the files?

19. Is the purchasing process on schedule, according to percentages complete?

PROJECT PURCHASING AUDIT CHECKLIST 20. Is purchasing over budget, according to the percentage complete versus workhours

expended?

21. Are there any problem purchase orders?

22. Are all potential backcharges to suppliers properly documented and coordinated

through purchasing and project management?

23. Are claims by suppliers recorded by purchasing and approved or rejected by project

management?

24. Is purchasing on the routing and distribution of project variances?

25. Has purchasing initiated any project variances because of:

a. Changes in the scope of work?

b. Supplier claims?

c. Engineering design changes?

d. Construction changes?

e. Procedural changes?

26. Is there a supplier rating system to assist the company on future projects?

a. Is it maintained and current for project suppliers and subcontractors?

27. Are there any bottlenecks in the purchasing cycle, such as late approvals, timely

submission of requisitions, or the length of time from commitment to purchase

order issue?

28. Are releases against purchase agreements reported and tracked?

29. Is the division clear between purchasing to be done:

a. At the Engineering Office?

b. At the Home Office?

c. At the Project Site?

30. Have partnering suppliers been:

a. Used?

b. Single sourced?

c. Competitively bid?

31. Will the use of partnering suppliers result in any benefit to the project?

32. Is the ratio of change orders to purchase orders less than 1 to 1?

33. Is purchasing functioning as it should on the project?

PROJECT PURCHASING AUDIT CHECKLIST PROJECT CLOSEOUT

1. Have purchasing, expediting, and traffic files been merged and properly labeled?

2. Is a closeout change order for each purchase order required?

a. If so, have they been issued?

3. Has each file been checked for proper documentation?

4. Do the purchase order files meet the requirements for record storage?

5. Have the record storage forms been completed?

6. Are there any claims from suppliers outstanding?

7. Are there any claims to suppliers outstanding?

8. Are there any unresolved supplier warranty issues?

9. Has the owner of the project assumed responsibility for warranty claims against

suppliers?

10. Are accounts payable retention balances correct?

11. Are there any outstanding invoices for purchase orders or subcontracts?

12. Are there any disputed invoices?

13. Are all supplier data requirements completed?

14. Is the supplier's technical assistance at the site complete?

15. Was purchasing released from the project before completing closeout

requirements?

16. Are closeout requirements complete?

17. If not, how are they going to be completed and who is responsible for completing

closeout activities?