Procurement - Ventech!

1 OBJECTIVE
VENTECH ENGINEERS, LLC.
PROCEDURES
PROCUREMENT
4.6-2
Effective Date: Jan 6. 2011
Revision: 2
Approval: Kyle Ray
The objective of this procedure is to define the policies, practices and procedures of
Procurement.
2 SCOPE
This procedure applies to Ventech's normal procurement activities pertaining to the
supply of equipment, materials, and subcontract labor for projects.
The procurement activities shall include
3 AUTHORITY
Development of Vendor List
Vendor Contact and Correspondence
Confidentiality Agreements
Inquiry Preparation and Issuance
Bid Submittal and Analysis
Purchase Order Preparation and Issuance
Vendor Acknowledgments
Subcontract Agreements
Nonconformance Resolution
Vendor Price Modifications
Blanket Orders
Invoice Approvals
Maintaining Procurement Files
It is the responsibility of the Manager of Procurement to implement and maintain this
procedure.
4 REFERENCES
Procedure 4.6-4: Vendor Inspection / Quality Control
Procedure 4.6-1: Requisition Development
5 PROCEDURE
5.1 GENERAL
5.1.1 Ventech's standard forms will be used for all procurement and material
receipt activities, except as otherwise requested by the client.
5.1.2 Procurement has the responsibility to develop and execute the sourcing,
evaluating, placement, and administration of all purchases necessary for
the successful completion of the project.

5.2 PROCUREMENT DUTIES
Normal Procurement duties for the project will include the following:
5.2.1 Development of a project specific Vendor List.
5.2.2 Issuance of inquiries and expediting for prompt submittal of proposals
from bidders.
5.2.3 Commercial evaluation of quotations and lead in recommendation of
vendor.
5.2.4 Issuance of Purchase Orders and Purchase Order Revisions.
5.2.5 Administration and control of Purchase Orders from issuance through
completion.
5.3 DEVELOPMENT OF VENDOR LIST
Procurement maintains an active master list of vendors who have been carefully
screened and evaluated. Fabricating shops are reviewed in terms of the type of
equipment supplied, financial condition, quality control and delivery performance.
The vendor list is subject to review as required with considerations given to shop
capacity, current and projected shop loads and product or management changes.
Vendors may be deleted from the list with the main reasons being poor
performance (quality or delivery) or financial problems.
For each project a group of approved vendors is selected for all major equipment
categories which historically offer the best competitive quotations consistent with
the project's particular process and mechanical requirements, and the
geographic location. This list is developed in conjunction with Project
Management, engineering disciplines, and client (if required), and may be
amended during the course of the project due to changes in or clarifications of
equipment, economic changes, vendor performance and shop load. (With client
approval if required.)
Potential vendors may be selected through a variety of sources.
5.4 VENDOR CONTACT AND CORRESPONDENCE
All written correspondence with vendors shall be by letter or fax through
Procurement which will route copies to all concerned parties. In cases where a
technical telecon is required, which affects price or delivery, the engineer shall
have the intent of the conversation confirmed by the vendor by letter or telefax
through Procurement so all concerned parties can be kept up-to-date.
Communications between the engineering department and the vendor which may
impact the price or delivery of a given package shall be documented to
Procurement.
5.5 CONFIDENTIALITY AGREEMENTS
The Project Manager will designate all items requiring secrecy agreements and
advise the Procurement Manager of these requirements. Procurement will
arrange for advance development of the appropriate agreements so as not to
delay the bid/award process.
2 of 20

5.6 INQUIRY PREPARATION AND ISSUANCE
5.6.1 REQUEST FOR QUOTATION (RFQ) (See Form 4.6-2.1). The
prime document for issuance of an inquiry (See Form 4.6-1.4) is the
engineering "Requisition" (See Procedure 4.6-1). This package is
initiated by the engineer responsible for the equipment to be purchased
and must be approved by the Project Manager before Procurement can
take action.
5.6.2 INQUIRY NUMBERS: The inquiry number, which matches the
requisition number, consists of the project number, the major class and a
three digit numeric code issued sequentially within the major class. See
Procedure 4.6-1 for more information.
Example:
Project Number Major Class Sequential Number
4410-02 33 001
Revisions to the inquiry will be indicated by a suffix to the inquiry number of an A,
B, C, D etc.
5.6.3 INQUIRY ACTIVITY REPORT: The Inquiry Activity Report
(See Form 4.6-2.8) is to be maintained for every project or estimate in
which procurement participates and is issued periodically. It is arranged
in chronological order, by inquiry, as packages are issued for bid. The
report shall indicate all outstanding inquiries, the dates they are due,
date the proposal was received and a brief explanation in the event a
vendor chooses not to bid. The report will also indicate when the
commercial bid analysis was issued, the Purchase Order number and
successful vendor's name.
5.7 BID SUBMITTAL ANALYSIS
5.7.1 RECEIPT OF PROPOSALS: Distribution will be made by Procurement
in accordance with the Document Distribution Matrix issued for each
project. Unless otherwise instructed, bids will be held until all are
received. Once bids are received the Buyer will develop a "Preliminary"
Bid Tab and distribute it along with copies of all bids.
5.7.2 PROPOSAL REVIEW: After the preliminary Bid Tab/Bids are distributed
they are reviewed by the engineering department for technical content.
5.7.3 BID COMPARISON: The complete bid tabulation (Form 4.6-2.2)
consisting of a commercial summary page with approval signatures and
a technical back up tab (provided by the requisitioning engineer) is the
responsibility of the Buyer.
5.7.4 RECOMMENDATIONS AND APPROVAL: This procedure defines the
responsibility and authority to prepare, recommend and approve bid
tabulations. The technical bid tab shall be prepared and signed by the
responsible requisitioning engineer and forwarded to the Project
Manager. The Buyer shall complete the commercial bid tab which will
include:
• Price Review (include comparison with budget)
3 of 20

• Delivery Schedule
• Compliance with Terms and Conditions
• Freight and Payment Terms
• Resolution of any exceptions.
Upon completion of the commercial and technical bid tabulation, a
recommendation is made by the Project Manager who signs and
forwards to the Vice President of Projects for approval and signature.
The fully approved bid tabulation is returned to the Buyer and is filed in
the Purchase Order file. A copy of the fully approved bid tabulation is
distributed per the Document Distribution Matrix.
5.7.5 PRICE CHANGES: Changes which occur during the period between Bid
Tab approval and Purchase Order issuance which revise the Bid Tab
price must be treated as a Purchase Order Revision and processed
accordingly.
5.7.6 AUTHORIZATION
AUTHORIZATION TO MAKE PROCUREMENT COMMITMENTS
Level of
Sign Approve Authorization
Vice President
of Projects
X X Up to $10,000.00
President and
Vice President
Of Products
X (Both) X (Both) Over $10,000.00
5.8 PURCHASE ORDER PREPARATION AND ISSUANCE
5.8.1 AUTHORIZATION TO PURCHASE: The procedure for the authorization
to issue and commit a Purchase Order is as follows:
The authorization to commit a Purchase Order is given to the Buyer by
way of a Requisition indicating for "Purchase", signed by the Project
Manager or designee. The completed copy of the bid comparison and
all necessary signatures must be in the Buyer's possession before a
formal Purchase Order can be issued.
The formal Purchase Order is then developed (See Form 4.6-2.5),
signed by the Buyer and forwarded for approval in accordance with
Section 5.7.6.
5.8.2 PURCHASE ORDER AWARD: Purchase Order award to the vendor will
be made promptly upon receipt of the Requisition for purchase, and
include the Vendor Data Requirement Sheet (Form 4.6-2.4), applicable
drawings and specifications and corporate approval as noted in Section
5.7.6. Verbal awards are not acceptable. Fax awards may be used if
the Purchase order has received all internal approvals. Following award,
internal distribution will take place in accordance with the Document
Distribution Matrix.
4 of 20

5.8.3 PURCHASE ORDER NUMBERS: The Purchase Order number consists
of the project number followed by a three digit, sequential number for the
project.
EXAMPLE
Project Number Sequential Number
4410 001
5.8.4 PURCHASE ORDER LOG: A Purchase Order Log (See Form 4.6-2.9)
is maintained and issued every two weeks. The Purchase Order Log is
issued to assign Purchase Order numbers in sequential order, and to
record authorized expenditures committed to the project. The register
also contains the vendor name, date of Purchase Order award items
purchased, the date vendor acknowledgment was received and
subsequent revision to Purchase Orders as issued. The assigned Buyer
is responsible for maintaining and issuing this document.
5.9 VENDOR ACKNOWLEDGMENTS
The Vendor Acknowledgment (Form 4.6-2.5) copy of the Purchase Order or
revision duly signed by the vendor is a valuable legal document and the prompt
return of it by the vendor, preferably within ten days after the date of issue, is the
responsibility of Expediting. The Buyer is responsible for reviewing this
acceptance copy for any exceptions.
5.10 SUBCONTRACTS
Subcontract Agreements for the supply of services for subcontracted labor,
equipment and materials shall be executed in accordance with Procurement
activities outlined in 4.6-2; Section 5.1 through Section 5.9.
5.10.1 TYPES OF SUBCONTRACTS
Lump Sum Subcontract Agreement (See Form DWI-PUR-004.1)
Minimum guidelines for Lump Sum Subcontract quotations shall be
complete engineering, drawings and specification; a firm schedule of
specific activities; and explicit as to the exact scope of work required and
known responsibilities.
Cost Plus Subcontract Agreement (See Form DWI-PUR-004.2)
Minimum guidelines for Cost Plus Subcontract quotations shall be
specific as to the classification of each craft skill; all labor charges
broken out by base rate, fringes, markups for profit, overhead, markup
for subcontractor owned equipment, markup for third party owned
equipment, rates for all equipment shown as “fueld” and “non-fueled”.
5.10.2 SUBCONTRACT PREPARATION
5 of 20

The Subcontract Agreement shall be a clear representation of the
services and circumstances under which those services are to be
provided. It shall be in as much detail as possible and will, by
“Attachment”, list all subcontract documents and each and every item
necessary for the performance of services.
5.10.3 SUBCONTRACT ISSUANCE
The Procurement Department shall prepare one (1) original Subcontract
Agreement for approval signatures (See 4.6-2; 5.7.6 Authorization). The
Subcontract Agreement shall be presented to the Subcontractor for
acceptance and Subcontractor’s original signature shall be returned to
the Procurement Department.
A copy of the full approved Subcontract shall be distributed in accordance
with the Document Distribution Matrix issued for each project.
5.11 NONCONFORMANCE RESOLUTION
All nonconformance notifications shall be forwarded by the Statistical Quality
Control Inspector to the Project Expediter, who will, in turn, present the details of
the nonconformity to the project team for resolution (refer 4.6-4). Once a decision
has been reached, the response will be channeled back to the Expediter for
immediate transmission to the vendor. The Buyer will, if necessary, confirm with
the vendor any resulting price and/or delivery adjustments and subsequently issue
a revision to the Purchase Order upon receipt of a completed and approved
requisition.
5.12 VENDOR PRICE MODIFICATIONS
5.12.1 TRANSMITTAL LETTERS: Revised drawings or specifications are
formally issued to the vendor, by the Buyer, to obtain pricing and delivery
impact as applicable.
5.12.2 VENDOR PRICE CHANGES: Upon receipt of vendor price changes,
copies are distributed to the engineer/Project Manager for review and
approval. A duplicate copy shall be retained by the Buyer to insure
follow-up action.
5.12.3 PURCHASE ORDER REVISIONS: Upon receipt of the Project
Manager's approval, via a completed Requisition, the Buyer shall issue a
Change Order (Form 4.6-2.6) to the Purchase Order incorporating the
necessary price or scope changes.
5.13 BLANKET ORDERS
The procedure for approving and signing Purchase Change Orders
remains the same as for original Purchase Orders.
5.13.1 PIPING MATERIAL - RANDOM PIPE, FITTINGS, AND FLANGES:
Under normal circumstances pipe, valves, fittings, and flanges will be
purchased from a Bill of Material as outlined in an Inquiry Requisition.
Bills of Material are prepared by Engineering and sent to Procurement
where they are processed through the normal bid procedures, vendor
selection, and order placement.
6 of 20

Procurement will attempt to obtain from the selected vendor a firm pricing
agreement to be applicable to future releases for a specified time period.
If a firm pricing agreement cannot be obtained, subsequent materials
may be sent out for competitive quotations.
In some cases, however, economic conditions may dictate
obtaining quotations from manufacturers or distributors of valves, fittings,
and flanges on a list and discount basis.
This is advisable when requirements cannot be determined at an early
date and price increases are anticipated.
List and Discount Basis
Estimated Bills of Material for shop fab pipe and structural steel are
developed by Engineering and issued for the purpose of establishing
blanket orders. The quantities listed are an estimate of project
requirements based on preliminary information then available. The Buyer
issues an Inquiry to manufacturers or distributors requiring them to
submit their quotation on the basis of published list prices less applicable
discounts with firm prices for the duration of the project.
5.14 INVOICE APPROVALS
It is the responsibility of the Buyer or the Expeditor to approve all vendor invoices.
Invoices are attached to a completed Invoice Routing Sheet (Form 4.6-2.7) and
then forwarded to the Project Manager for review and approval. Once approved
the invoices are forwarded to Accounting for payment.
6 DOCUMENTATION
DOCUMENT LOCATION
Request For Quotation Procurement File
General Terms and Conditions
Inquiry Activity Report
Bid Tabulation
Purchase Order
Vendor Data Requirement Sheet
Purchase Order Log
Vendor Acknowledgment
Purchase Order Change Order
Invoice Routing Sheet
Subcontract Agreements
REVISION: DATE REVISED:
DESCRIPTION OF REVISION:
7 of 20

VENTECH VENTECH ENGINEERS, ENGINEERS, INC. INC.
FORM # 4.6-2.1 (Page 1 of 4)
1149 ELLSWORTH P.O. BOX 4261 PASADENA, TX 77502 (713) 477-0201 FAX: (713) 477-0180
TO:
REQUEST FOR QUOTATION
INQUIRY NO. : 4410-06-13-002-A
DATE :4/7/98
BIDS DUE BY : 13-Apr-98
DESTINATION :Pasadena, Texas
WE INVITE YOU TO SUBMIT A QUOTATION FOR THE COMPLETION OF FOUR (4) REACTORS IN ACCORDANCE WITH
VENTECH ENGINEERS, INC., REQUISITION NUMBER 4410-06-13-002, REVISION A, DATED APRIL 7, 1998, ATTACHED.
1. Immediately upon receipt of this Inquiry, please confirm your intention to quote and specify the name of the
individual who will be assigned to prepare the quotation. In addition, please provide Fax and Telephone Number.
This information may be FAXED to Ventech Engineers, Inc., Attention: DEBBIE FARLEY, Fax Number
(713) 477-0180.
2. Please submit an original and two (2) copies of your quotation to the attention of the undersigned.
3. Your quotation and all related correspondence MUST be identified with the subject Inquiry Number and be in
Ventech Engineers, Inc., office on or before APRIL 13, 1998. Ventech Engineers, Inc., RESERVES THE
RIGHT TO REJECT ANY QUOTATION RECEIVED AFTER THIS DATE.
4. Please submit your Quotation as unit pricing.
NOTICE TO BIDDERS
1. PLEASE ADVISE PROMPTLY IF UNABLE TO QUOTE. 4. "GENERAL TERMS AND CONDITIONS" AS OUTLINED ON THE REVERSE
2. SUBMIT ALL INFORMATION AS REQUESTED FOR PROPER SIDE OF THIS PAGE WILL APPLY TO ANY PURCHASE ORDER ISSUED
CONSIDERATION OF YOUR
BID.
ON THE BASIS OF THIS REQUEST FOR
QUOTATION.
3. ALL PRICES AND CONDITIONS MUST BE SHOWN. 5. ITEMIZE ALL UNIT PRICES, DISCOUNTS, TERMS, CHARGES, DUTIES,
SALES OR USE TAXES, FREIGHT, UNIT WEIGHT AND TOTAL WEIGHT.
PLEASE SUBMIT YOUR PROPOSAL TO :
BUYER
Debbie S. Farley
8 of 20

(1) COMPLETE AGREEMENT
FORM # 4.6-2.1 (Page 2 of 4)
GENERAL TERMS AND CONDITIONS
COMPLETE AGREEMENT - This purchase order, (Purchase Order) including these terms and conditions, the specifications, drawings, special instructions and any additional data, and conditions incorporated
into and attached hereto constitutes the sale and entire agreement between the parties hereto. No other terms or conditions shall be binding upon Buyer unless accepted in writing.
(2) CHANGES
CHANGES - The Buyer reserves the right at any time to make changes in any one or more of the following (a) Specifications, drawings, and data incorporated in this Purchase Order where the items to be
furnished are to be specially manufactured for the Buyer; (b) Methods of shipment or packing; (c) Place of delivery; and (d) Time of delivery; provided however that no such change materially effects the Seller's
delivery
ability to perform. If any such change causes an increase or decrease in the cost of or the time required for performance of the order, an equitable adjustment shall be made in the Purchase price or
schedule, or both. Any claim by Seller for adjustment under this clause shall be deemed waived unless asserted in writing within ten (10) days from receipt by Seller of the change. No agreement o
understanding to modify this Purchase Order shall be binding upon the Buyer unless in writing and signed by Buyer's authorized agent.
(3) ACCEPTANCE OF ORDER
ACCEPTANCE OF ORDER - The parties shall be bound by this Purchase Order and its terms and conditions when Seller (a) executes and returns the acknowledgement copy of this order, or (b) delivers to
Buyer any of the items ordered, or (c) renders for Buyer any of the services ordered herein. No contract shall exist except as hereinabove provided.
ivil
or military authority, fires, strikes, floods, epidemics, war or riot. Buyer shall be notified immediately in the event of any such delay and if the effects cannot be offset by reasonable efforts of Seller, the date
of delivery shall be extended for the period equal to the time actually lost by reason of the delay. Buyer may at anytime request assurance that Seller will complete its performance on time. If Sell er fails to
(4) DELAYS
DELAYS - Time is of the essence. However, Seller shall not be liable for delays in delivery or failure to manufacture or delivery due to causes beyond its reasonable control, such as acts of God, acts of c
give Buyer assurance of performance when reasonable grounds for insecurity arise, then Buyer reserves the right without liability, in addition to its other rights and remedies, to cancel this Purchase Order by
notice effective when received in writing by Seller, as to stated items not yet shipped or services not yet rendered, and to purchase substitute items or services elsewhere without liability, and Seller shall be
liable for the difference between the cost of such items or services and the price set forth in this order for the goods involved.
(5) INSPECTION
INSPECTION - If this Purchase Order specifically requires Buyer's inspection, Seller shall give Buyer ten (10) days written notice prior to start of fabrication and ten (10) days written notice prior to readiness
for final inspection. Buyer's failure to inspect shall not be cause for Seller delaying start of fabrication or shipment. Any such inspection and/or failure on the part of Buyer's Inspectors to disc over or reject
defective work, equipment or materials furnished by Seller or work, equipment or materials not in accordance with this Purchase Order shall not be construed to imply an acceptance by Buyer of such work,
equipment or material.
NON-WAIVER - Failure of Buyer to insist upon strict performance of any of the terms and conditions hereof, or failure or delay to exercise any rights or remedies provided herein or by law or to properly notify
Seller in the event of breach, or the acceptance of or payment for any goods hereunder, or approval or design, shall not release Seller of any of its rights or remedies as to any such goods, regardless when
(6) NON-WAIVER
shipped, received or accepted, or as to any prior or subsequent default hereunder, or shall any purported oral modification or rescission of this Purchase Order by Buyer operate as a waiver of any of the terms
hereof.
(7) WARRANTY
WARRANTY - Seller expressly warrants that all items covered by this Purchase Order will conform to the drawings, specifications or samples (if any) or other description furnished or adopted by Buyer, and
will be fit and sufficient for the purpose intended, merchantable, and free from defects in material, workmanship and title. This warranty shall inure to and be enforceable by the Buyer and its succe ssors in
interest for a period of eighteen months from date of delivery or one year from the date of acceptance of the goods by Buyer's successor in interest, whichever period is shorter. This warranty shall
limit any other warranty expressed herein or provided by law.
PATENTS - Seller undertakes and agrees to defend at Seller's own expense all suits, actions, or proceeding in which Buyer of Buyer's successor
(8) PATENTS
- Seller undertakes and agrees to defend at Seller's own expense all suits, actions, or proceeding in which Buyer of Buyer's successor
in interest is made a defendant for actual or alleged infringement of any U.S. or foreign letters patent resulting from the use or sale of the items
purchased hereunder (excepting infringement necessarily resulting from adherence to specifications or drawings submitted to Seller by Buyer)
and Seller further agrees to pay and discharge any and all judgments or decrees which may be rendered in any such suit, action or proceedings
against such defendant therein.
(9) TAXES
TAXES - The total price of the Purchase Order shall include sales and other taxes imposed by law upon, or on account of the manufacture, sale or delivery of the material or equipment ordered herein, unless
otherwise agreed.
(10) FREIGHT
"Actual Cost" only.
FREIGHT - To be agreed upon by both parties at the time an order is placed. If an exact amount cannot be settled upon then the material shall be shipped "Prepaid and Added." All freight shall be billed at
(11) PRICES AND PAYMENT
PRICES AND PAYMENT - Prices herein stated are firm and not subject to escalation unless otherwise expressly stated and shall include all charges for packing and loading. Payment will be made in accordance
with the applicable provisions of this Purchase Order or within thirty (30) days after delivery to Buyer and inspection as provided herein if not otherwise specified. However, the time for payment of invoices,
or for accepting any discounts offered, shall not begin until the date correct invoices are furnished to Buyer.
(12) COMPLIANCE - Seller warrants that all goods sold and services furnished hereunder shall have been produced, sold, delivered and furnished in strict compliance with all applicable laws, regulations, labor
agreements and working conditions. Seller shall execute and deliver such documents as may be required to effect or to evidence compliance. All laws and regulations required to be incorporated in agr eements
of this character are hereby incorporated herein by this reference.
(13) OWNERSHIP AND CONFIDENTIAL INFORMATION
OWNERSHIP AND CONFIDENTIAL INFORMATION - All drawings, specifications, plans, data, or other written material furnished by Buyer to Seller, and all copies thereof, shall remain the property of Buyer,
and all such material and copies shall be returned to Buyer on demand. The information disclosed in such drawings, specifications, plans, data or other written material shall not be disclosed to third parties
or used by Seller other than the connection with this order without Buyer's prior written consent, except to the extent that such information is in the public domain or was in Seller's prior possessio n without
obligation of secrecy.
(14) TERMINATION
TERMINATION - Buyer shall have the right at any time and for any reason to terminate this Purchase Order, in whole or in part, by giving written or telegraphic notice to Seller. Upon receipt of such notice,
Seller shall, unless the notice directs otherwise, immediately discontinue the work and the placing of orders for materials, facilities and supplies and shall make every reasonable effort to procure cancellation
of all such existing orders or contracts upon terms satisfactory to Buyer. Seller shall thereafter do only such work as may be necessary to preserve and protect work already in progress. In case of such
termination, it is agreed that Seller shall be entitled to compensation for the work already performed and not otherwise salable in the ordinary course of Seller's business, including material for whi ch firm contracts
have been made. The foregoing shall be the sole remedy available to Seller in the event of termination by Buyer. The Buyer's right to terminate as provided herein shall not be construed as affecting in any
way the rights, duties, or obligations of the parties, should Buyer cancel this Purchase Order upon Seller's breach or default.
(15) ASSIGNMENT
hereunder to Buyer.
ASSIGNMENT - Seller shall not assign this order or delegate any of its duties hereunder without Buyer's prior written consent. No assignment or delegation by Seller shall relieve Seller of its obligations
(16) BACKCHARGES
BACKCHARGES - Should the material or equipment furnished under this Purchase Order require modifications to correct deficiencies in manufacture, fabrication or warranty conditions, the Seller will be advised
in a timely manner. Seller shall correct such deficiencies in a timely manner, and if Seller doe not take appropriate action to correct any deficiency for which Seller is responsible within a reasona ble time after
Buyer's notification thereof, Buyer may take such corrective action itself or by contract with others. All costs incurred in connection with the correction of such deficiencies, either before or after delivery, shal
be borne by Seller and Seller shall reimburse Buyer for all costs so incurred.
INDEMNITY - The Seller agrees to indemnify and save the Buyer harmless against all liabilities, claims or demands for injuries or damages to any
(17) INDEMNITY
- The Seller agrees to indemnify and save the Buyer harmless against all liabilities, claims or demands for injuries or damages to any
person or property arising out of Seller's acts or omissions in the performance of this order including any liabilities, claims, or demands which
are the result of buyer’s sole, comparative and/or contributing negligence or gross negligence.
(18) GOVERNING LAW
GOVERNING LAW - The parties agree that the laws of the State of Texas shall govern the validity and interpretation of this contract and the rights of the parties hereunder. The parties agree that venue for
any action arising out of this contract shall be in Harris County, Texas. The parties further agree that they submit to the jurisdiction of any state or federal court located in Harris County, Texas.
9 of 20
in no way

VENTECH VENTECH ENGINEERS, ENGINEERS, INC. INC.
SPECIAL INSTRUCTIONS TO BIDDERS:
A. TECHNICAL REQUIREMENTS:
FORM # 4.6-2.1 (Page 3 of 4)
REQUEST FOR QUOTATION
INQUIRY NO. : 4410-06-13-002-A
DATE :4/7/98
*Confirm that your quotation complies with all Ventech Engineers, Inc., specifications or list specific exceptions taken.
Delivery is of the utmost importance to the successful completion of this Project; therefore, your quoted delivery must be
obtainable.
*Vendor must identify manufacturer of all items and components.
*Confirm your compliance with General Tagging and Marking Instructions.
*This order is subject to inspection by Ventech Engineers, Inc. The Inspector designated by the Buyer shall have free
entry, at all times while work is being performed, to all parts of Manufacturer's premises which involves the manufacture,
inspection or testing of the material ordered. The Manufacturer shall afford the Inspector, free of cost, all necessary and
reasonable use of facilities, including inspection and testing equipment, instruments, supplies, and technicians, in
determining that the material is being furnished in accordance with specifications. All test and inspection by said Inspector
shall be made at place of manufacture as not to interfere unnecessarily with the operation of Manufacturer's Plant.
All materials, parts, and equipment purchased by the Manufacturer from sub-vendors or subcontractors shall be subject to
these Inspection Requirements.
The Manufacturer shall notify all sub-vendors / suppliers / subcontractors of these requirements.
This Inspection shall not relieve the Manufacturer of complying with any and all expressed or implied specifications or of
Manufacturer's guarantee that the material shall perform satisfactorily under conditions of reasonable service.
Buyer's Inspector representative may withhold shipment of any material or equipment that does not conform to the
Purchase Order and / or technical requirements.
B. COMMERCIAL REQUIREMENTS:
(1) Quote must state price as requested.
(2) All prices must be firm for duration of Contract and not subject to escalation.
(3) State validity of proposal for acceptance (90 day minimum).
(4) State terms of payment.
(5) Provide transportation cost to Pasadena, Texas as a separate line item. If F.O.B. point is other than project site,
transportation fees will be prepay and add at actual cost. (Vendor will furnish paid freight bill as proof of cost).
(6) Ventech Engineers, Inc., reserves the right to accept other than the lowest quotation and to accept or reject any
quotation in whole or in part, or to reject all quotations without notice or reasons.
(7) Any commercial questions that you have in reference to this Inquiry should be addressed to the attention of the
undersigned.
(8) Failure to follow the above guidelines in submitting quotations may invalidate your proposal.
10 of 20

VENTECH VENTECH ENGINEERS, ENGINEERS, INC. INC.
FORM # 4.6-2.1 (Page 4 of 4)
1149 ELLSWORTH P.O. BOX 4261 PASADENA, TX 77502 (713) 477-0201 FAX: (713) 477-0180
REQUEST FOR QUOTATION
INQUIRY NO. : 4410-06-13-002-A
DATE :4/7/98
QUOTATIONS SHALL BE IN ACCORDANCE WITH THE FOLLOWING ATTACHMENTS:
A. Requisition
B. Special Instructions
C. Exhibit "A" - Scope of Work
D. Exhibit "B" - Terms and Conditions
E. Exhibit "C" - Construction Safety Rules & Policies Manual
F. Exhibit "D" - Insurance Requirements
11 of 20

FORM # 4.6-2.2
12 of 20

FORM # 4.6-2.3 (Page 1 of 3)
TO : SHIP TO:
PH:
FAX:
ATTN :
SHIPPING DATE F.O.B SHIP VIA TERMS
ITEM NO. QUANTITY
COMMODITY CODE:
QUANTITY DESCRIPTION
COST CODE: 4422-02-XXXXXX $
INSTRUCTIONS:
1. PURCHASE ORDER NUMBER MUST APPEAR ON ALL INVOICES,
PACKAGES, PACKING SLIPS AND CORRESPONDENCE.
2. SEE GENERAL TERMS AND CONDITIONS ON THE REVERSE SIDE HEREOF.
3. SIGN AND RETURN ACKNOWLEDGMENT COPY WITHIN 10 DAYS AFTER
RECEIPT OF ORDER
4. ALL CORRESPONDENCE CONCERNING THIS ORDER SHOULD BE
DIRECTED TO THE ATTENTION OF THE DESIGNATED BUYER.
DESCRIPTION UNIT PRICE
13 of 20
UNIT PRICE TOTAL
TOTAL
TOTAL P.O. VALUE: $0.00
BY: ARTHUR PENNY
VICE PRESIDENT OF MANUFACTURING
BUYER: D. S. FARLEY

DRAWINGS:
FORM # 4.6-2.3 (Page 2 of 3)
ALL DRAWINGS AND VENDOR DATA AS LISTED ON THE VENDOR DATA REQUIREMENTS SHEET SHALL BE SUBMITTED
TO:
INVOICES:
VENTECH ENGINEERS, INC.
1149 ELLSWORTH DRIVE
PASADENA, TEXAS 77506
ATTENTION: VENDOR DATA DEPARTMENT
INVOICES INVOICES TO TO BE BE BILLED BILLED AND AND MAILED MAILED TO: TO:
SHIPPING:
VENTECH VENTECH ENGINEERS, ENGINEERS, INC. INC.
P. P. O. O. BOX BOX 4261 4261
PASADENA, PASADENA, TEXAS TEXAS 77502 77502
ATTENTION: ATTENTION: ACCOUNTS ACCOUNTS PAYABLE PAYABLE
FOR SHIPPING INSTRUCTIONS CONTACT:
VENTECH ENGINEERS, INC.
FREIGHT:
ATTENTION: DEBBIE FARLEY
713/477-0201, EXT. 412
SHALL BE PREPAID AND ADDED TO THE INVOICE WITH SUPPORTING DOCUMENTATION. ALL FREIGHT SHALL BE
BILLED AT ACTUAL COST ONLY.
NOTE:
VENTECH ENGINEERS, INC., WILL NOT ACCEPT DELIVERIES ON FRIDAYS, SATURDAYS, OR SUNDAYS, NOR WILL
FREIGHT COLLECT SHIPMENTS BE ACCEPTED WITHOUT PRIOR WRITTEN AGREEMENT.
INSPECTION AND TESTING:
THIS ORDER IS SUBJECT TO INSPECTION BY VENTECH ENGINEERS, INC. THE INSPECTOR DESIGNATED BY THE
BUYER SHALL HAVE FREE ENTRY, AT ALL TIMES WHILE WORK IS BEING PERFORMED, TO ALL PARTS OF
MANUFACTURER'S PREMISES WHICH INVOLVES THE MANUFACTURE, INSPECTION OR TESTING OF THE MATERIAL
ORDERED. THE MANUFACTURER SHALL AFFORD THE INSPECTOR, FREE OF COST, ALL NECESSARY AND
REASONABLE USE OF FACILITIES, INCLUDING INSPECTION AND TESTING EQUIPMENT, INSTRUMENTS, SUPPLIES,
AND TECHNICIANS IN DETERMINING THAT THE MATERIAL IS BEING FURNISHED IN ACCORDANCE WITH
SPECIFICATIONS. ALL TEST AND INSPECTION BY SAID INSPECTOR SHALL BE MADE AT PLACE OF MANUFACTURE
PRIOR TO SHIPMENT, AND SHALL BE SO CONDUCTED AS NOT TO INTERFERE UNNECESSARILY WITH THE
OPERATION OF MANUFACTURER'S PLANT.
ALL MATERIALS, PARTS AND EQUIPMENT PURCHASED BY THE MANUFACTURER FROM SUB-VENDORS OR
SUBCONTRACTORS SHALL BE SUBJECT TO THESE INSPECTION REQUIREMENTS.
THE MANUFACTURER SHALL NOTIFY ALL SUB-VENDORS/SUPPLIERS AND SUBCONTRACTORS OF THESE
REQUIREMENTS.
14 of 20
NOTE: DO NOT SEND ANY VENDOR DATA
ATTACHED TO PIECES OF EQUIPMENT,
INVOICES, OR PACKING LISTS.

INSPECTION AND TESTING: (CONTINUED)
FORM # 4.6-2.3 (Page 3 of 3)
THIS INSPECTION SHALL NOT RELIEVE THE MANUFACTURER OF COMPLYING WITH ANY AND ALL
EXPRESSED OR IMPLIED SPECIFICATIONS OR OF MANUFACTURER'S GUARANTEE THAT THE
MATERIAL SHALL PERFORM SATISFACTORILY UNDER CONDITIONS OF REASONABLE SERVICE.
BUYER'S INSPECTOR REPRESENTATIVE MAY WITHHOLD SHIPMENT OF ANY MATERIAL OR
EQUIPMENT THAT DOES NOT CONFORM TO THE PURCHASE ORDER AND/OR TECHNICAL
REQUIREMENTS.
MANUFACTURE PRIOR TO SHIPMENT, AND SHALL BE SO CONDUCTED AS NOT TO INTERFERE
UNNECESSARILY WITH THE OPERATION OF MANUFACTURER'S PLANT.
BUYER'S INSPECTOR REPRESENTATIVE MAY WITHHOLD SHIPMENT OF ANY MATERIAL OR
EQUIPMENT THAT DOES NOT CONFORM TO THE PURCHASE ORDER AND/OR TECHNICAL
REQUIREMENTS.
SPECIAL NOTE:
WAIVERS OF TECHNICAL REQUIREMENTS FOR DESIGN, MANUFACTURE, FABRICATION OR
TESTING OF AN ITEM MUST BE APPROVED, IN WRITING, BY BUYER. (A WAIVER IS DEFINED AS AN
"APPROVED" DEVIATION FROM THE REQUIREMENTS.) VERBAL AGREEMENTS DO NOT
CONSTITUTE ACCEPTABLE
DEVIATION FROM THE REQUIREMENTS OF THE PURCHASE ORDER OR REFERENCED
DOCUMENTS.
CERTIFICATIONS:
INVOICES FOR ALL MATERIALS MUST HAVE IMPRINTED THEREON A CERTIFICATE SIMILAR TO
THE FOLLOWING:
"WE HEREBY CERTIFY THAT THESE GOODS WERE PRODUCED IN COMPLIANCE WITH ALL
APPLICABLE REQUIREMENTS OF SECTIONS 6, 7 AND 12 OF THE FAIR LABOR STANDARDS ACT,
AS AMENDED, AND OF REGULATIONS AND ORDER OF THE UNITED STATES DEPARTMENT OF
LABOR ISSUED UNDER SECTION 14 THEREOF."
EEO REQUIREMENTS:
THE VENDOR WILL COMPLY WITH ALL PROVISIONS OF EXECUTIVE ORDER 11246 OF SEPTEMBER
24, 1965, AND OF THE RULES, REGULATIONS AND RELEVANT ORDERS OF THE SECRETARY OF
LABOR, AND SUCH MODIFICATIONS THERETO AS SHALL BE MADE FROM TIME TO TIME.
15 of 20

FORM # 4.6-2.4
16 of 20

FORM 4.6-2.5
17 of 20

FORM # 4.6-2.6 (Page 1 of 2)
18 of 20

SCHEDULE REVISIONS
DRAWINGS:
EQUIPMENT DELIVERY:
FORM # 4.6-2.6 (Page 2 of 2)
OTHER REQUIREMENTS OF THIS CHANGE
19 of 20

CC: P.O. FILE
DATE:
PROJECT:
VENDOR NAME:
P.O. NUMBER:
P.O. AMOUNT:
INVOICE AMOUNT:
INVOICE NUMBER:
APPROVAL CHECK LIST
FORM # 4.6-2.7
INVOICE ROUTING SHEET
Calculations / Drawings / Documentation complete?
Equipment / Material delivery complete?
Pricing in accordance with P.O. terms?
Material Receipt attached?
P. O. Acknowledgement received?
Order is complete?
EXIM Certificate?
COST CODE
APPROVALS / ROUTING
Purchasing:
Project Manager:
Accounting (Last)
Remarks:
Remarks:
TOTAL
20 of 20
YES
DOLLARS
NO
Date
Date
invfrm