📑 Purchasing Orders Audit Checklist for Nigerian Oil and Gas EPC Projects 🛢️
Dear BIVILLEPM Community,
Everything about this post started from a job description requiring the Planner-Cost Engineer to audit purchasing orders’ content and clauses for Nigerian Oil and Gas EPC. Auditing purchasing orders for Nigerian Oil and Gas EPC (Engineering, Procurement, and Construction) projects requires attention to detail and compliance with local regulations and industry standards. Here’s a checklist you can use:
1. Legal Compliance:
- Ensure that all purchasing orders comply with Nigerian oil and gas laws and regulations.
- Verify that the contracts adhere to the Nigerian Oil and Gas Industry Content Development Act (NOGICD Act) requirements.
- Confirm that the terms and conditions align with Nigerian contract law.
2. Vendor Selection and Qualification:
- Check if vendors have been properly evaluated and qualified based on technical capabilities, financial stability, and adherence to safety standards.
- Verify that vendors meet local content requirements as per Nigerian regulations.
3. Scope of Work:
- Review the scope of work outlined in the purchasing orders to ensure clarity and alignment with project requirements.
- Check if the scope covers all necessary services, materials, and deliverables.
4. Technical Specifications:
- Ensure that technical specifications are accurately defined and meet project standards.
- Verify compliance with relevant industry standards such as API, ANSI, and ASTM.
5. Delivery Terms:
- Check delivery terms to ensure timely supply of materials and equipment.
- Verify transportation and logistics arrangements, including shipping terms and responsibilities.
6. Price and Payment Terms:
- Verify pricing details and ensure they are in line with market rates and project budget.
- Review payment terms, milestones, and any penalties or incentives related to delivery schedules.
7. Insurance and Indemnity:
- Confirm that insurance requirements are clearly outlined, including liability, property, and workers’ compensation insurance.
- Ensure vendors provide adequate indemnity clauses to protect against potential risks.
8. Quality Assurance/Quality Control (QA/QC):
- Verify that QA/QC requirements are specified to maintain quality standards throughout the project.
- Ensure that inspection and testing procedures are outlined for materials and equipment.
9. Health, Safety, and Environment (HSE) Requirements:
- Check if HSE standards are incorporated into the purchasing orders to ensure a safe working environment.
- Verify compliance with Nigerian HSE regulations and industry best practices.
10. Change Management:
- Ensure that procedures for handling changes to the scope, schedule, or budget are clearly defined.
- Verify mechanisms for documenting and approving changes to purchasing orders.
11. Dispute Resolution:
- Confirm that mechanisms for resolving disputes, such as arbitration or mediation, are included in the purchasing orders.
- Ensure clarity on the governing law for dispute resolution.
12. Documentation and Record-Keeping:
- Check if documentation requirements are clearly defined, including reporting, invoicing, and record-keeping.
- Ensure that all correspondence and communications related to purchasing orders are properly documented.
13. Audit Trail:
- Verify that there is a clear audit trail for all changes, approvals, and communications related to purchasing orders.
14. Contract Closeout:
- Ensure provisions for contract closeout, including final inspection, acceptance, and settlement of any outstanding issues or claims.
15. Ethical and Anti-Corruption Compliance:
- Confirm that purchasing orders adhere to ethical standards and include anti-corruption clauses.
- Verify compliance with the Foreign Corrupt Practices Act (FCPA) and other relevant anti-corruption laws.
Image By #GeorgeNWOGU
Regular auditing of purchasing orders against this checklist can help ensure transparency, compliance, and successful execution of Nigerian Oil and Gas EPC projects.
Source: GPT AI and #GeorgeNWOGU
#OilandGas #EPC #Nigeria #Procurement #Audit #Compliance 🇳🇬🛢️#GeorgeNWOGU #BIZVILLEPM 🌐🚀
Best regards,
Engr. George (Chìsom) ÑWÒGU (MBA, PMP®️)
Motto: Humanity First, then Smart and Green. 🚀
My name is George Nwogu, a Senior Project & Planning Manager, COO and Global Trainer from Nigeria. I’m the Founder of Bizville Project Management Limited
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