Quotation preparation

Quotation preparation:

 

All proposals are to be prepared in line with the following guidelines. The regional authorization must have a guideline as per respective “Corporate Policy Manual” is implemented and followed, The checklist to be prepared in Commercial and Technical aspects to be made more lucid.

A quotation describes the product, states a price for it, sets the time of shipment, and specifies the terms of the sale and terms of the payment. Since the foreign buyer may not be familiar with the product, the description of it in an overseas quotation usually must be more detailed than in a Domestic quotation. The description should include the following 15 points:

1. Seller’s and buyer’s names and addresses.
2. Buyer’s reference number and date of inquiry.
3. Listing of requested products and brief description.
4. Price of each item (it is advisable to indicate whether items are new or used and to quote in domestic cuurency to reduce foreign-exchange risk).
5. Appropriate gross and net shipping weight (in metric units where appropriate).
6. Appropriate total cubic volume and dimensions packed for export(in metric units where appropriate).
7. Trade discount (if applicable).
8. Delivery point.
9. Terms of sale.
10. Terms of payment.
11. Insurance and shipping costs.
12. Validity period for quotation.
13. Total charges to be paid by customer.
14. Estimated shipping date from respective nations seaport or airport.
15. Currency of sale.

Note: The below are of assumed only to make understand the what would be the appropriate terms and conditions for POME pupil.

Standard terms and conditions to be considered while submitting the quotation in the bid, as per sample format:

This type of format needs to be enclosed, when ever the quotation provided to the customer, in order to be safeguarding our organization and its projects, Products contractually. The terms and conditions, that should be there in detail, is been illustrated in separate chapter in detail.

Sample Terms & Conditions for Supply/ Service of Equipment.

1.      DELIVERY

The delivery of the equipment offered would commence within __ months and would be completed within ____ months thereafter.

Delivery period shall be reckoned from the date of receipt of your technically and commercially clear order and advance payments whichever is later.  The delivery period may stand revised in case of changes in order specifications.  The delivery would be made in complete unit or standard transport sections.

We have assumed that in order to adhere to the quoted delivery period, the following

commitments must be observed:

 

Activity

Action By

Commencement

Completion

Tech. & Commercially clear Purchase Order and advance.

Client

 

 

Project Inputs & GFC Drawings

Client

 

 

Submission of Drawings for information/ records (for Major Equipment only)

Organization/ Manufacturer/ Supplier

 

 

Approvals; within 10 days of submission.

Client

 

 

 

• Only basic documents like technical submittal, system architecture, panel wiring drawings, cable routing drawings etc., which would propose the scheme/ arrangement in principle shall only be submitted for approvals.
• In case of delays in furnishing or change in specs/ drawings by you beyond the stipulated / agreed time schedule, the prices as well as delivery periods shall be subject to changes and shall be mutually discussed and agreed     between us.
• Approval received on submission of drawings will be considered as your final approval of drawings for the equipment which will then be strictly manufactured accordingly.  However, please note that corrected drawings as above will not be  resubmitted to you for approval again. No further changes shall be accepted by us without repercussions on the stated delivery and prices.
• The delivery indicated above has been in good faith, subject to force majeure conditions.

 

2.       PRICES & VALIDITY

Our offer is valid up to ___________ and valid for  delivery   up to   ………  The prices quoted are on Ex-works basis inclusive of standard roadworthy packing.

 

3.       TAXES & DUTIES

• The prices are exclusive of Excise Duty, Sales Tax (i.e. central and / or state sales tax and /or Works Contract Sales Tax and / or Turnover Tax and / or Additional Tax and / or surcharge commonly known as sales tax, recovery whereof from customers is not prohibited under the provisions of the relevant law), and / or any other Central and / or Local Tax and / or Surcharge of any kind, which if levied will be charged extra. Octroi (if applicable) and any other taxes and duties (including customs duty), shall be paid extra at actuals at the rates prevailing at the time of delivery. Exchange rate variation, if any, shall be to your account.

For own manufactured items, the Sales Tax is computed as per the prevailing rates against appropriate form, prescribed by the concerned sales tax authorities, to be furnished by you. For bought out items we have considered sale in course of transit subject to your furnishing appropriate form prescribed by the concerned sales tax authority. For such transactions, sale will be by endorsement of documents while goods are in transit.

• The lump sum excise duty and sales tax amount shown is indicative only.  The excise duty and sales tax shall be reimbursed at actuals against submission of documentary proof along with dispatch documents.
• The prices normally on lump sum turnkey basis including clearing, forwarding, transportation, insurance and octroi where applicable. x% Works Contract Tax on total contract has been included in the prices. For the services portion indicated separately in the price schedule y % service tax as per Government notification has been included.

 

1. SCOPE OF SUPPLY

• The scope of supply for all the items considered have been clearly brought-out  as per the price schedule. The prices indicated by us have been calculated based on the same. In case of quantity variation our basic prices/unit rates/delivery will be mutually agreed. Quantity supplied as per approved drawing, if becomes surplus at site and is not installed shall be purchaser’s property and will not be taken back by us.

 

1. 4. TERMS OF PAYMENT FOR SUPPLY PORTION

Note: In few cases, advance won’t be given by Buyers.

­­­Normally, at least x%  of the total Contract Price as Initial interest free advance along with LOI/PO/Brief order and against the organization submitting a corporate guarantee for equivalent amount and valid up to completion of deliveries. The value of the guarantee shall be reduced on pro-rata basis every month against supplies.

(100-x)% of the contract price along with 100% taxes and duties (where applicable)  and full price variation amount with 100% taxes and duties thereon (where applicable) on pro-rata basis (as per billing schedule to be furnished by us on receipt of LOI) immediately on submission of dispatch documents. Timely payment shall be the essence of the contract.

In case of default in payment or indefinite hold on project, from your side, unadjusted advance, if any, would be used to clear our outstanding payment.

 

5.       WARRANTY

The equipment supplied by the organizations is warranted for ‘z’ months from the date of supply or ‘y’ months from the date of commissioning (whichever is earlier).  Should the equipment become defective under proper use due to faulty material or workmanship, the same shall be repaired by us free of cost. You shall inform us in writing of any defect in equipment noticed during guarantee period.  On receipt of the written notice, the Organization shall repair free of cost, equipment supplied by us. You shall not return the equipment to us before receiving our confirmation to this effect. The equipment in such cases shall be returned to the works informed by us on freight to pay basis. The warranty under this clause is subject to the condition that you shall not have subjected the equipment to alteration, addition or repair by anyone except us or our authorized representative.

 

6.       TRANSPORT & INSURANCE

• The prices quoted are on Ex-works basis.   Transport shall be to your account.  The dispatch of our equipment shall be made by Road Transport only, for which we would engage our approved transport contractors.
• Insurance shall be to the customers account.  Manufacturer would intimate the particulars of the equipment being dispatched for your information within 48 hours of dispatch.
• The prices are on all inclusive lump sum turnkey basis.

 

8        ARBITRATION

All disputes / differences whatsoever, which shall arise between parties hereto during the continuance of this Agreement /Contract or afterwards, touching this Agreement / Contract or the construction or application thereof or any clauses contained on the rights, duties, liabilities of either party in connection therewith, shall be referred to a Sole Arbitrator to be appointed with the consent of both the parties. The place of arbitration shall be at ” some place” and the Arbitrator appointed shall have held the office of a judge of any Court. In the event of the parties not being able to agree to a Sole Arbitrator within a period of 15 days from being called upon to agree such appointment, then in that event organization shall have the right to nominate such Sole Arbitrator with a similar qualification and his decision will be binding on the Parties. Such Arbitration proceedings will be held in the consonance with the provisions of Arbitration and Conciliation Act of 1996 or any statutory modification or re- enactment thereof for the time being in force.

 

9.       Limitation of liability

No Other Warranties / Guaranties:

Organization to the maximum extent permitted by applicable law, disclaim all warranties / guaranties, either express or implied, other than what is expressly stated in this Agreement / Offer / Order Confirmation.

No Liability for Damages:

Organization, to the maximum extent permitted by applicable law, in no event shall be liable for any damages whatsoever, including without limitation, special, incidental, consequential, direct or indirect damages, for personal injury, loss of business profits, business interruptions, loss of business information, or any other pecuniary loss, arising out of the use of or inability to use the products / equipment / systems.

 

10.     CHANGE ORDER

If the Purchaser desires any variations in any part of the Contract, notice in writing shall be given to the Contractor by the Purchaser so as to enable the Contractor to make necessary arrangements and/or procedures, and to enable the Purchaser and the Contractor to reach the mutual written consent, and in case the Equipment is already manufactured or in the course or manufacture, or any matter done or drawings or patterns made that require to be altered, a reasonable sum to be mutually agreed on in respect thereof shall be paid by the Purchaser.

In this case, the reasonable time of extension of delivery shall be granted.  All extra costs or reductions of costs due to variations shall be paid by either party as greed upon.

 

1. 11. FORCE MAJEURE

In the event of,  stoppage of work in any establishment of ours/our suppliers during the delivery period owing to war hostilities, acts of the public enemy, civil commotion, riots, acts of terrorism, sabotage, fires, floods, power cuts, earthquake, tempests, explosions, epidemics or any acts of God, quarantine restrictions, strikes, lockouts, trade disputes, concerted action of workman, breakdowns, accidents, etc. as well as  transport embargoes, failures or delays in transportation, Governmental decree and/or causes beyond our control, deliveries may be postponed or partially or wholly cancelled by us.

 

1. 12.      INDEPENDENCE OF CONTRACT

In the event the Purchaser awarding contract(s) the execution of such awards contract(s) shall be treated to the bidder against this offer, the execution of such awarded contract/s shall be treated independently all other contract/s which the purchaser may place or may have placed with Bidder.  In other words, there shall be no inter-connection technically and/or commercially, including deduction of any nature related to other contract/s between the contract/s already awarded and the contract now to be awarded against this offer.

 

GAUTAM KOPPALA ORG (Signtaure of the concerned Authority of the organisation)

 

 

Risk assessment for all offers of Higher Value Orders has to completed and sent to  Corporate Risk Management, and needs to approved by the respective management authoritative.

 

Where the tender specifies commercial terms and conditions, a contract review needs to be done for all offers which are of bigger contract values espscially.

Received tenders are kept secure and unopened until the closing date, when they are opened in the presence of nominated officers and formally recorded. Late tenders are opened and recorded before being returned to the tenderer. Now a days, it is currently exploring and working towards electronic tendering so that tenders can be transmitted electronically. Presently documents can be downloaded electronically and sent to the Customer in hard copy in the normal manner described here.

Opened tenders are passed to the contract officer for evaluation, which may take a few days or several weeks. All tenderers are notified of the outcome in writing and the successful tenderer will be issued with a contract.

Effective contract management is key to a successful relationship between both Customer and the contractor/supplier.

Then the sales executive to meet up with the customer with the freezed BOQ, and also participate in Technical Bid. If the technical bid got success, then goes for the Bid Approval.

Then comes the Contract Negotiation/ Price comparisons with other bidders

And normally, No biased upon any vendor and the Price bids are kept in the secret lockers. Buyer/ Customer goes for L1 Policy normally (L1= lowest bid, L2= Next lowest Bid…….. H2: Next Highest Bid, H1: Highest bid)

Then officially, would be confirmed whether the Project is won or lost.

POME LIGHTER VEIN:

Software Development Cycle:

• Programmer produces code he believes is bug-free.
• Product is tested. 20 bugs are found.
• Programmer fixes 10 of the bugs and explains to the testing department that the other 10 aren’t really bugs.
• Testing department finds that five of the fixes didn’t work and discovers 15 new bugs.
• Repeat three times steps 3 and 4.
• Due to marketing pressure and an extremely premature product announcement based on overly-optimistic programming schedule, the product is released.
• Users find 137 new bugs.
• Original programmer, having cashed his royalty check, is nowhere to be found.
• Newly-assembled programming team fixes almost all of the 137 bugs, but introduce 456 new ones.
• Original programmer sends underpaid testing department a postcard from Fiji. Entire testing department quits.
• Company is bought in a hostile takeover by competitor using profits from their latest release, which had 783 bugs.
• New CEO is brought in by board of directors. He hires a programmer to redo program from scratch.
• Programmer produces code he believes is bug-free…

 

About the Author

With over ten years, track record of successful leadership, excellent results through strategic skills in driving revenue and profit growth. Demonstrated ability to identify and trouble shoot critical issues impacting productivity, cost, distribution, marketing, Strategic positioning, sales and financial operations, with innate ability to build and maintain strong client relationships in operations. Expert in distilling and managing processes, enhancing internal structures, and promoting multi-skilled team competencies via nurturing mentorship and inspirational leadership. Engagements have spanned operational, strategic, technological and change management roles. Academically, I am a cum laude graduate with a Bachelor of Technology degree in Electrical and Electronics Engineering (B-Tech E.E.E.) and a post graduate in Masters in Human Resources Management (M.H.R.M.) and Masters of Foreign Trade (M.F.T.). As you will see my Post Graduation’s were been studied part-time, as well as working full-time as an Engineer. I feel that this demonstrates my ability to maintain dedication, motivation and enthusiasm for a project management over a long period of time. In addition, balancing full-time work with study has perfected my time-management and organizational skills. I believe that my college degrees and gamut certifications in combination with my extensive broad-based work experience along with my drive, resourcefulness and determination, would make me an excellent candidate for a senior management position with any company. Highlights of my background include Operations related Commercial, Supply chain, Sales with a magnificent experience in Project management, technically oriented towards Automation and Security Systems in Industrial and Building sectors. Presently, writing a book on Projects and Operations Management (comprise of 12 volumes, 6K pages), and awaited for the reputed publications. These books can be checked in Google books and scribd websites too.

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