GENERAL PROCEDURE

MATERIAL HANDLING CONTROL

PROCEDURE

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Date: 11/07/2009

MATERIAL HANDLING CONTROL PROCEDURE

Rev. 0

GENERAL PROCEDURE
MATERIAL HANDLING CONTROL
PROCEDURE

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Date: 11/07/2009

INDEX OF CONTENTS

SECTION

1.0

TITLE

PAGE

INTRODUCTION

2.0

OBJECTIVES

3.0

DESCRIPTION

3.1

General

3.2

Material Receiving (For Contractor supplied)

3.3

Material Receiving (For Owner Supplied)

3.4

Material Identification and Marking

3.5

Material Handling

3.6

Material Storage and Preservation Control

3.7

Material Issuance and Surplus Control

3.8

Material Colour Coding

4.0

MATERIAL CONTROL RECORDS

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1.0 INTRODUCTION
The Material Control and Handling Procedure form an integrated part of the Contractor
Quality Management System. The development of this procedure is in line with the Contractor
processes management and the requirement in ISO 9001:2000 Standard.
This procedure is applicable for all materials and equipment that shall be used for the
construction and installation activity that are controlled by the Contractor.

2.0 OBJECTIVES
The objective of this procedure is to provide a guideline and methodology as well as
determine the responsibility of the Contractor personnel including Material Control
Coordinator, Storekeeper and Inspectors in ensuring that all materials or equipment received
are properly stored, monitored, and controlled for easy traceability for both categories of
supplies (Owner and Contractor materials).

3.0 DESCRIPTION

3.1 GENERAL
The material handling process starts with the receiving of the purchase orders and other
supporting documentation from the Procurement for Contractor materials and for Owner
supplied materials, the material handling process starts from the receipt of material at site
including inspection as stipulated on contract document.
3.2 Material Receiving (For Contractor Supplied)
The Material Control Coordinator and/or the Storekeeper are responsible for the receiving of
the materials at the work site. They are also required to make a necessary arrangement for
the receiving, storage, handling and preservation prior to the receiving of the material. Upon
arrival at site / store, the material shall be checked against the supporting documents (P.O,
D.O, Certificates, and Data Sheets, etc.) to ensure that there is no discrepancies in quality
and quantities. The Material Control Coordinator / Storekeeper shall prepare Material
Receiving Report (MRR) and forward to Discipline Inspector for further inspection.
The MRR shall be signed by relevant personnel upon completion of all inspection.
Subsequently if the material is satisfactory, Request for Inspection (RFI) shall be forwarded to
the Owner for their inspection, if required, and if is found acceptable then the same is allowed
for use.

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In both inspections (internal or with the Owner), if the material was found not in compliance to any
of the requirement, the finding shall be recorded by the Inspector in the Material Discrepancy
Report (MDR) and immediately communicate the issue to the Contractor Project Manager and
Procurement for further action.
The Material Control Coordinator / Store Keeper shall update the Material Status Inventory Report
as

necessary

with

the

accepted

material

information.

The

Material

Control

Coordinator/Storekeeper shall then prepare a Material Delivery Advice and forward it to the
Procurement Department in the Head Office.

3.3 Material Receiving (For Owner Supplied)

3.3.1

The Owner and or their appointed transporter shall be responsible for

shipping, custom clearing, transporting to site and unloading of all free issue
materials, equipment, and etc. in the designated area at work site. The
unloading of materials shall be done such as item wise, size wise and tank
wise as well by category wise.

3.3.2

The Material Control Coordinator and / or Store Keeper are responsible for
the receiving of the free issue

materials, equipment and etc. at the work

site. They are also required to make a necessary arrangement for the
receiving, storage and preservation prior to the delivery of materials.
3.3.3

Upon delivery of materials / equipment at site by Owner/transporter, the

following steps shall be followed:
a) The Owner/Transporter and Contractor`s Representative shall jointly
inspect all the delivered items against the delivery order (DO), shipping
documents and relevant drawings and shall verify the quantity as well as
the physical damages, if any, during the transportation and unloading at
site. The Contractor`s representative (Material Control Coordinator) shall
prepare Material Receiving Report (MRR) and shall be signed by all parties
representative if no shortage in quantity and physical damage (during
transportation).
b) During the above inspection, if any shortage in quantity against delivery
order (DO) and found any physical damage during transportation the
finding shall be recorded in the Damage/Non Conformity Report and
signed by Owner/Transporter and Contractor`s Representative and
immediately communicate the issue to the Owner`s and Contractor`s
Project Manager for further action.

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3.3.4

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Upon completion of all the above, the following activities shall be carried out:
a) The Owner`s Representative and Contractor`s Representative
(discipline inspector together with Material Control Coordinator) shall
jointly inspect all materials, equipment, etc. thoroughly with the use of
necessary tools, equipment, etc. item by item against the data sheet,
drawing, design calculation, etc. to ensure there are no discrepancies
in quality. The Contractor`s Representative shall prepare Material
Inspection Report (MIR) and shall be signed by both parties (Owner /
Contractor Representative).
b) During inspection the following shall be followed:

If the materials found satisfactory without any discrepancies in quality

and then the same is allowed to use.

If the materials are acceptable but with minor discrepancies and not
required any rectification/replacement shall be

recorded in the

Material Inspection Report (MIR) with supporting document such as

photos and the extent / type of discrepancies and signed by both
Owner/Contractor`s Representative and then allowed to use.

If the material is acceptable but required rectification it shall be

recorded in the Material Inspection Report (MIR) with supporting
documents such as photos and the extent/type of discrepancies as well
as with recommendation for remedy/rectification, requirement of NDT
works and signed by both Owner/Contractor`s Representative. Then
the same materials shall be rectified, tested as recommended and then
allowed to use upon approval by Owner/Contractor Representative.

But prior to commence rectification it shall be notified to Owner`s and

Contractor Project Manager for their comments and approval.

That material that is not acceptable and not possible to rectify shall be
rejected. In such case the same shall be brought to the attention of
Owner`s and Contractor`s Project Manager with supporting documents
evidence for their further action to procure or replace the materials.

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3.4 Material Identification and Marking

3.4.1

For Contractor Materials.

All materials received shall be marked, tagged or segregated for positive
identification. As a minimum the materials shall be identified with:

Purchase order and Delivery order.

Specific item number. (The item number if not specified by any support
documents shall be the one that is established by the Material Control
Coordinator/Storekeeper. Accept (Green), Reject (Red) or On hold
(Yellow) marking or segregation shall be marked or tagged accordingly
after the inspection as an evidence for inspection status. A color system
as mentioned above has been established and shall be made known to all
related personnel. A copy of the above color code shall be displayed
prominently at all work places.

The material shall be segregated by Accept, Reject or On Hold areas. The

areas shall be clearly marked accordingly.
3.4.2

For Owner Materials

Piping materials shall be painted on the outer surfaces with the identification
colors for material, type and schedule/ rating as per Owner color coding
procedure for piping. All other Owners supplied materials shall come with
proper tags / marking / nameplates as the case may be for easy identification.
Proper care shall be taken to ensure that tags / marking are not damaged
during handling /installation.

3.5 Material Handling

All materials shall be carefully handled to avoid damage, deterioration and contamination.
Suitable tools shall be used for the handling in the storage as well as in the construction or
installation areas. Material handling shall also consider safety, health and environment factors
during the process. Specific handling methods may be established, if required for in the storage,
construction or installation.
Materials that are sensitive to corrosion shall be handled without getting in contact with ferrite
materials. If carbon base tools are to be used, the contact surface shall be isolated.
Suitable lifting gears shall be utilised during handling heavy load materials and ensure the gears
that are used will not deteriorate the quality of the products/parts.

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3.6 Material Storage and Preservation Control

Suitable storage area shall be established at site and shop to ensure the conformity of the
product or parts of the product are maintained. The marked-up storage area plot plan layout
may be prominently prepared and displayed.
In general the storage areas are divided into four main categories namely:
Covered Warehouse Priority for the material that may easily deteriorate in quality and
security if stored in outdoor.
Covered warehouse with air conditioning Priority for the materials that may easily
deteriorate in quality if stored in covered warehouse without air conditioning.
Out Door Storage for that material that have very low probability of deterioration in quality
and security with or without minimum preservation (Weatherproofing material canvas or
plastic sheeting).
Special Out Door Storage For material that easily deteriorate in quality and quantity but
unable to be stored in the Covered Warehouse due to special reasons (size, mobility, safety,
etc.). This type of storage shall be accompanied with a comprehensive preservation program
(to be established at site for case to case basis).
Storage method in all the above areas shall also be considered and ensure the type that used
will not deteriorate the quality of the products/parts and maintain easy handling at all time. No
materials shall be stored on the ground except in the Covered Warehouse with raised
concrete floor.
Suitable barricaded or separation areas shall be prepared for corrosion sensitive material
from ferrous base material.
Suppliers special storage requirement (such as welding electrodes, fluxes, tools etc.) shall be
strictly followed to maintain the quality of the material.

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3.7 Material Issuance and Surplus Control

For Contractor supplied materials
The authorised person who wishes to withdraw the material shall require completing the
Material Withdrawal Voucher (MWV) and obtaining approval from the discipline Supervisor
(as defined in the authority approval at site).Upon receiving the approved MWV, the Material
Control Coordinator will:

Check the completeness and the correctness of the MWV

Check the availability of the required material

Issue the material

Update Material Stock Card

At the end of the project all the Material Status Reports will be reviewed and physical
verification will be carried out to determine consumption and / or surplus material status.
Material Status Report will be prepared to record remaining materials at site. The Project
Manager must obtain approval from the General Manager (Commercial) for the disposition of
the saleable surplus material. Disposition of scrap material is under the jurisdiction of Project
Manager.
3.7.1

Control of Owner Supplied Material

In general all Owner-supplied material shall be controlled by the same method that is
being utilized for the Contractor purchased material. The following shall be added in
the process:
Identification and Marking in the Store To provide additional unique identification or
marking to differentiate from the Contractor supplied material.
Storage Area Additional marking is required to represent Owner-supplied material if
required.
Identification and Marking during construction or installation To provide additional
unique identification or marking to ease recall and verification if required.
Alternatively identification and marking during construction or installation can also be
identified in the form of material mapping in the drawing or document. This map shall
be made known to all the relevant personnel.
At the time of receiving, the Project Manager shall report any discrepancies, damage
or loss directly to the Owner. Necessary supporting documentation shall also be
made available such as MRR, NCR or other reports to support the notification.
Upon receiving the material, the Material Control Coordinator/storekeeper shall
complete the Material Receiving Report. Prior to issue the material for construction,
Contractor discipline Engineer/Superintendent/Supervisor shall inspect the material.

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Material will be issued for construction upon receiving an approved Material

Withdrawal Voucher by the authorized Construction supervisor. The storekeeper shall
update the Material Stock Card upon issuance of the material.
In the event that the surplus material is required to be returned to the Owner the
Material Control Coordinator/Storekeeper shall complete a Material Return Voucher
(MRV) and obtain approval from the Project Manager. The approved MRV shall form
as a delivery order and receiving confirmation for the return items. The Project
Manager shall ensure that the Owner sign receipt and stamp the MRV. This format is
applicable for both materials that supplied by the Owner and the Contractor.
3.8 Material Colour Coding / Material Identification Tags
The colour coding for all piping material shall be as per Owner specific requirement. Owners
colour coding requirement will be provided by Owner to the Contractor. Proper care shall be
taken by the Contractor to ensure material tags are tied / secured to the respective items and
or not lost or damaged during handling / storage / installation.

4.0 MATERIAL CONTROL RECORDS

Material inspection records or reports together with the supporting certificates used to confirm
compliance or non-compliance shall be maintained and controlled throughout the product
realization process.
Necessary records shall be compiled in the final documentation package as required by the
contract and this completed document shall be maintained.