Producing contractual arrangements to supply or procure goods or services for engineering activities

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This standard identifies the competences you need to produce contractual arrangements to supply or procure goods or services such as materials, components, services, facilities, equipment or people to customers, in accordance with approved procedures. You will be required to collect information, specifications and contractual terms and conditions, and to produce a tender to supply specific goods or services as requested by the customer. Your responsibilities will require you to comply with organisational policy and procedures for producing the contractual arrangements/tenders to supply or procure the required goods or services for the engineering activities, and to report any problems that you cannot personally resolve, or that are outside your permitted authority, to the relevant people. You will be expected to work with a minimum of supervision, taking personal responsibility for your own actions and for the quality and accuracy of the work that you carry out. Your underpinning knowledge will provide a good understanding of your work, and will provide an informed approach to gathering appropriate information, contractual terms and conditions, determining technical data, and presenting these in the required format to form a contract/tender. You will understand the engineering activity requirements within your area of responsibility, including quality assurance, resource management and problem solving principles and procedures, in adequate depth to provide a sound basis for carrying out your activities to the required standard. You will be aware of any organisational, legislative or regulatory health, safety and environmental requirements applicable to the engineering activities for which the tender is being supplied. You will be required to demonstrate safe working practices throughout, and will understand the responsibility you owe to yourself and others in the workplace.

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1. obtain accurate and full information on the goods or services for which tender or procurement contracts are to be prepared
2. identify the elements of the project to be tendered/procured through contractual arrangements, and confirm these with interested parties
3. ensure that the specifications for elements to be contracted out are unambiguous and are in sufficient detail for potential contractors to make competitive bids
4. ensure that any queries are dealt with promptly and equitably, in accordance with agreed organisational procedures, and that records are kept for future reference
5. ensure that relevant features and critical success factors are identified and recorded
6. produce contract/tender proposal in the required detail, ensuring it complies with organisational and regulatory requirements
7. ensure that the completed contract is reviewed and confirmed as meeting the customer requirements

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1. how to access information on health and safety regulations and guidelines relating to the engineering activities
2. the implications of not taking account of legislation, regulations, standards and guidelines
3. how to obtain information required to produce a contract/tender (such as technical data, terms and conditions, product specification, manufacturing requirements, manpower)
4. how to obtain information on a supplier to identify appropriate information (such as trading history, financial returns, volumes of business)
5. the arrangements that may require a supplier to demonstrate continuous improvement in the provision of goods and services
6. the documentation or evidence that may need to be provided with the supply of goods and services (such as declaration of conformity, materials specification, batch control)
7. how products can be made identifiable or traceable (such as part numbers, batch codes)
8. how to check the validity of documentation used to prepare the tender
9. the organisational procedures that should be used when obtaining auxiliary and support resources
10. orgnisational policy and procedures for contractual work, goods, materials and services
11. types and forms of contract appropriate to project type and project elements within your organisation
12. precedents for use of particular types and forms of contract within your organisation
13. methods of identifying potentially suitable contractors
14. sources of information to establish suitability of potential contractors
15. methods of accessing information to establish suitability of potential contractors
16. basic principles of contract law, including implied terms of contract
17. implications of National, European and International contract law
18. legal requirements governing tendering procedures and ethical considerations in the tendering process (such as environmental considerations, end of life disposal and carbon footprint)
19. the type of information and amount of detail to be written into the contracts/tenders
20. how to use previous or similar tender/contract information to assist in preparing the contract
21. the obvious (and hidden) costs of providing that product/service
22. the method to set target costs using own and supplier benchmark data
23. how to determine the resources that will be required to carry out the work for which you are contracting
24. how to carry out cost analysis, and determine the costs that will need to be charged for the work to be contracted
25. the procedures and format for submitting tenders
26. confidentiality and protection of information rights
27. the process and procedures for concluding contractual arrangements
28. techniques of negotiating contracts
29. the importance of maintaining records on contractual arrangements; what needs to be recorded, and where records are kept
30. the different ways of presenting information to different people
31. the roles and responsibilities of key personnel in your organisation
32. problems that can occur when producing contractual arrangements, and how these problems can be overcome
33. the extent of your own responsibility, and whom you should report to in the event of problems that you cannot resolve
34. the sources of technical expertise if you have problems that you cannot resolve

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1. Carry out all of the following when producing contractual arrangements for the supply or procurement of goods or services:

   1. use the correct issue of organisation information
   2. collect technical details and specifications of the goods or service to be supplied/procured to the customer
   3. collect and analyse costing data relative to goods and services provided (such as quotations)
   4. identify potential problems which may influence the provision/procurement of the goods or services
   5. ensure that health and safety regulations, safe working practices and environmental issues are taken into account
   6. ensure that the influence of working conditions is recognised and included in the contractual arrangements
   7. identify sources of any additional or auxiliary resources to be supplied/procured
   8. ensure suppliers produce evidence that meets appropriate industry standards, guidelines or directives (such as ISO 9001, CE marking)
   9. provide terms and conditions related to the contract
   10. produce the contract in an appropriate format in line with organisational procedure
   11. ensure existing contracts are amended (if applicable)

2. Produce contractual arrangements to supply/procure goods or services for one of the following engineering activities:

   1. drawing/design activities (such as mechanical, electrical/electronic, motor vehicle, aerospace, marine)
   2. manufacturing activities (such as machining, detail fitting, fabrication of components, pressing)
   3. material processing activities (such as heat treatment, casting, injection moulding, purification)
   4. composite manufacture (such as wet lay-up, pre-preg laminating, resin infusion, blow moulding)
   5. finishing activities (such as stripping finishes, painting, plating, anodising, veneering, lacquering)
   6. assembly activities (such as mechanical, structural, fluid power, electrical/electronic, woodworking)
   7. installation activities (such as mechanical, electrical/electronic, avionic, structural, environmental equipment)
   8. plant and equipment (such as site preparation, plant layout, equipment changeover, equipment replacement)
   9. equipment capability studies/performance measurement
   10. movement/storage of materials, components or finished goods
   11. business improvement activities
   12. engineering safety audits or risk assessments
   13. quality control/quality assurance
   14. maintenance activities             
   15. commissioning/decommissioning  
   16. research and development
   17. testing and trialling                      
   18. modification and repair activities    
   19. engineering support services
   20. new product or component introduction (NPI) to the business operation
   21. launch of an engineered product to the market
   22. logistic operations

3. Obtain information on the goods or services to be supplied/procured, from three of the following sources:

   1. goods or service specifications 
   2. process engineering          
   3. contractor
   4. design office                            
   5. plant engineering             
   6. installation department
   7. sales department                  
   8. quality engineering       
   9. finance department
   10. planning department    
   11. logistics department          
   12. contracts/legal department   
   13. management/directors
   14. production engineering            
   15. service department         
   16. health/safety/environmental engineering

4. Determine the requirements for the goods or services for which contracts/tenders are being prepared, to include ten of the following, as applicable:

   1. stock levels of goods or components required
   2. people who have the required skills and knowledge to carry out the work
   3. the space/work area in which to carry out the engineering activities
   4. the raw materials required (such as type and specification of material, form of material, amount of material)
   5. consumable materials required (such as welding accessories, masking mediums, lubricant, cutting compounds)
   6. bought in standard components that will be required (such as bearings, electrical or electronic components, fluid power components, mechanical fasteners)
   7. batch size and frequency of supplier
   8. capacity assessment of supplier to handle increase in demand for goods or services
   9. equipment required (such as hand tools, power tools, machinery, lifting and handling equipment)
   10. any additional support services required and associated costs (such as material treatments, specialist lifting and moving equipment)
   11. ensuring all hidden costs are identified and considered in contract tender
   12. timescales in which the activities need to take place
   13. special/specific safety equipment required (such as fume extraction, fire equipment, environmental protection)
   14. identification of issues arising from new supplier/contract
   15. impact of international/national sourcing (such as currency exchange rates and lead time for delivery)

5. Produce a contract/tender which includes information covering seven of the following:

   1. precise details of the goods or services to be supplied/procured
   2. compliance/quality requirements for goods and services
   3. the full costs of the goods or services
   4. the timescales in which the goods or services will be supplied/procured
   5. the delivery details
   6. service level agreements
   7. penalty clauses to be applied
   8. protection against breach of contract
   9. provision for contract review

6. Produce contracts which cover two of the following:

   1. standard contracts
   2. non-standard contracts
   3. contracts which have implied terms
   4. contracts which contain a balance of risk and reward
   5. contracts which are fixed price or `cost plus' (variable)

7. Carry out both of the following on completion of the contracting activities:

   1. validation of the contracting systems and procedures used
   2. identification of improvements that could be made to the contracting systems and procedures

8. Produce the contract/tender in the appropriate format, and inform the appropriate people, using the following methods:

   1. specific company documentation

Plus one more method from the following:
2. written or typed report
3. verbal report
4. electronic mail
5. computer based presentation
6. other appropriate media

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3

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01 Mar 2024

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Current

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Original

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Enginuity

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SEMETS361

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Engineering, Engineering and Manufacturing Technologies, Engineering Technicians

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3113

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engineering; technical; support; machining; detail fitting; fabrication of components; pressing site preparation; plant layout; equipment changeover; equipment replacement; mechanical; electrical/electronic; avionic; structural; environmental equipment

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