Risk management in procurement
The Company has focused on good corporate governance for the entire group of companies. In the past year, the Company has reviewed the procurement regulations by collaborating with external consultants in arranging the assessment on the adequacy of the internal control system in order to reduce operational risks and adequacy in managing the dealers.
The Company is committed to operate efficiently. The new procurement regulations were announced in January 2019 in order to ensure transparency in procurement to be fair.
Guidelines for risk management of traders
The Company has set the criteria for consideration and selection of procurement proposals in 2 criteria to ensure fair competition. Not only the price is considered in order for the contractor to deliver the best products and services with fair prices to the Company, namely, in price and price performance evaluation criteria.
The Company has set the criteria for selecting traders who have the right to bid for the project of the Company. The list of traders is made categorized by types of work to be procured relating to the quality management system in the process of supplying raw water to customers. This is for having enough traders to perform the main operations of the Company. The types of work are divided into 9 categories and are categorized the registration levels in each category. The criteria for the consideration of registration and classification is made from the registered capital, previous performance in 10 years, responsible persons in the operation Including machine, tools.
This also includes evaluating the performance, requesting traders when the work is completed. Or if the project duration is over 1 year, the evaluation is supposed to be conducted every year until the work is completed. Besides, the registration of traders must be reviewed at least every 2 years to allow traders to submit relevant information for the Company to review and classify new levels according to the current data of the traders. In addition, the Company having the right to delist the traders from the list of accounts to bid in the case that the assessment results are lower than as determined by the Company or under the criteria for considering other related delisting.