Capital and Minor Works Tender Policy

This policy provides the rules for the purchase of goods and services by SMS Oil & Gas Limited, its Partners, employees and or appointed representatives.  It is the company’s policy that value for money is one of our key aims for all SMS Projects.  All O.E.M., Service and Construction contracts will be tendered on an open, fair and competitive basis and will be drafted and managed effectively to negate cost overruns.

In order to encompass the full range of expenditure, the levels of quotes/tenders and corresponding documentary back-up will vary as follows:

 

Level of Expenditure

Action Required/ Category of Purchase

Less than £15,000

Normal best-value purchasing procedure using local knowledge, approved by Manager

£15,000 to £50,000

Three Quotes Required + Partner Approval

£50,000 to £1,000,000

Min. three quotes & issued tender spec. + Board Approval

£1,000,000 and above

National Advert + Min. six quotes & full tender spec. + Closed Tender Return & Deadline + Board Approval

In extenuating circumstances and or if a strategic supplier has had a long-term relationship with the company, the above may be waived subject to Board Approval.

 

Robert Hobbs

December 2010