Zealcon Engineering

(Pvt.) Ltd
Method Statement for Material
Handling And Storage

Zealcon-DGK-9000 TPD-MS-004
Issue # 001

Issue Date

Page 1 of 14

25-07-2016

METHOD STATEMENT

MATERIAL HANDLING AND STORAGE

Client:
Contractor:

DG Khan Cement
Zealcon Engineering (Pvt.) Ltd

Rev.
Description
No
00

MS for Material Handling

And Storage

QHSE

Farhan

A. Hafeez

Ahmad

Khan

Sohail Rabbani

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Zealcon Engineering
(Pvt.) Ltd

Zealcon-DGK-9000 TPD-MS-004

Method Statement for Material

Handling And Storage

Issue # 001

Issue Date

Page 2 of 14

25-07-2016

1. PURPOSE
This MATERIAL HANDLING AND STORAGE PROCEDURE is intended to define
the requirements, storing, care and custody etc., from receipt through to
issue of the MATERIALS supplied by the VENDOR to the CONTRACTOR and
to set forth the respective CONTRACTOR's responsibilities and obligations in
this respect.
2. SCOPE OF APPLICATION
This Method Statement is to apply to all aspects of MATERIALS handling and
Control carried out by the respective Contractor.
3. DEFINITIONS & KEY PERSONNEL
3.1 Definitions
In this Method Statement, the following words and expressions are used,
and they have the respective meanings hereby assigned to them, except
where the context otherwise requires,
COMPANY:

DG Khan Cement

CONTRACTOR:

ZEAL Construction Engineering

SITE:

The place or places so designated by the Company for

the
construction of the PLANT including such
places adjacent there

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Zealcon Engineering
(Pvt.) Ltd
Method Statement for Material
Handling And Storage

Zealcon-DGK-9000 TPD-MS-004
Issue # 001

Issue Date

Page 3 of 14

25-07-2016

to which are for storage and assembly of

equipment and
materials.
WAREHOUSE
OPEN STORAGE AREA
REQUISITION

Any Indoor Storage Facilities.

Any Outdoor Storage Facilities.
A written request for MATERIALS, to be prepared

by the
Contractor.
VENDOR

Any party whose services are obtained by the

Company or
Contractor for supply and construction.
3.2 Key Personnel
The following key personnel of the Contractors may be assigned in respect
of MATERIALS Handling and Storing
3.2.1 Incharge Warehouse
A person employed and assigned who shall be responsible to the
overall control of MATERIALS, which includes receiving, storing,
issuing, stock taking and disposal of MATERIALS and also includes
forecasting of MATERIALS availability and arranging of replacement
for shortage, damaged or shortfall MATERIALS.
3.2.2 Store Officer
A person employed and assigned, who shall be reporting to the
Incharge Warehouse, for the receiving, storing, issuing and stock
taking of MATERIALS at the Warehouse And Open Storage Area.
3.2.3 Store Keeper

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Zealcon Engineering
(Pvt.) Ltd

Zealcon-DGK-9000 TPD-MS-004

Method Statement for Material

Handling And Storage

Issue # 001

Issue Date

Page 4 of 14

25-07-2016

Persons employed and assigned, who shall be responsible to the

Store Officer, For The Receiving, Storing and issuing of materials at
the Warehouse and Open Storage Area.
3.2.4 Material Coordinator
A person employed and assigned, who shall be responsible to the
Head of Construction Co-ordination Department of the Contractors
for the supervision and co-ordination of the construction work
assigned to him, carried out by the Contractor.
4. OUTLINES OF MATERIAL HANDLING AND STORING

MATERIALS handling and storing commences with receipt of the

MATERIALS at the SITE, and includes the unloading of the MATERIALS into
the WAREHOUSE or OPEN STORAGE AREA, and the issue of the
MATERIALS which is in the control of the Contractor.

The final operation shall be the disposal of all surplus or residual

MATERIALS upon completion of the construction work by Contractor.

The duties and scope of the persons of Contractor involved in MATERIALS

Handling

and

Storing

activities

are

listed

as

follows,

including

mobilization of all labour, equipment, tools and materials required.

1. Planning and preparatory works
2. Receiving and unloading of MATERIALS
3. Unpacking and inspection, which includes:
a. Issuing of Excess, Shortage or Damage Reports,
b. Issuing of Request for Urgent Procurement, if any,
4. Storing MATERIALS by Contractors shall include

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Zealcon Engineering
(Pvt.) Ltd
Method Statement for Material
Handling And Storage

Zealcon-DGK-9000 TPD-MS-004
Issue # 001

Issue Date

Page 5 of 14

25-07-2016

a. Securing the land area provided by Company for MATERIALS

storage.
b. Provision of suitable, weather-tight warehouse facilities, and where
required within the area allocated to the respective by the
Contractors.
c. Optimizing the use of available space within the STORAGE
FACILITIES and providing all racks, pallets, sleepers, natural
drainage etc., necessary for the appropriate storage of MATERIALS
in advance of their receipt.
d. Storing all MATERIALS in accordance with the requirements,
e. Ensuring that all MATERIALS stored in the OPEN STORAGE AREA are
adequately protected, i.e., by tarpaulins or the like, to prevent
deterioration,
f. Maintaining a high degree of housekeeping within the STORAGE
g. FACILITIES
h. Ensuring that all hazardous MATERIALS shall be stored and handled
with the utmost care and in accordance with the laws and
regulations applicable thereto.
5. Requisition and issuing, which includes:
a. Producing and submitting REQUISITIONS to the DISCIPLINE COORDINATOR for his approval
b. Approval of issue of MATERIALS to the construction Engineer.
c. Control and co-ordination of issue of MATERIALS.
6. Stocktaking
7. Return and disposal

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Zealcon Engineering
(Pvt.) Ltd
Method Statement for Material
Handling And Storage

Zealcon-DGK-9000 TPD-MS-004
Issue # 001

Issue Date

Page 6 of 14

25-07-2016

5. MATERIAL HANDLING ACTIVITIES

5.1 Planning and Preparatory Works
Prior to receiving of MATERIALS at the SITE, the following planning and
preparatory works shall be carried out by the Contractor.
1. Receiving the following reference documents for planning
a. Overall Shipping Schedule,
b. Over Dimension Cargo List and drawings thereof,
c. Storage Area General Drawing
d. MATERIAL Handling Procedure
2. Receiving the Detail Packing Lists
3. Planning for required manpower and construction equipment for
unloading.
4. Planning of unloading place and designation of storing areas
5. Filling the Package No., Item No., etc. in the Cargo Receiving Report
accordance with the received Detail Packing Lists
5.2 Material Receiving And Unloading
5.2.1 Receiving of Materials
The MATERIALS received at the Site shall be delivered to one of the
following areas as designated by the Store Officer
1. At The Warehouse
2. At The Open Storage Area
3. At

any given place in the Site (Direct Delivery Materials)

Upon receipt, all MATERIALS shall be recorded on a Cargo Receiving Report

describing the MATERIALS, the requisition under which they are delivered,
their storage location, etc.
5.2.2 Unloading of materials

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Zealcon Engineering
(Pvt.) Ltd
Method Statement for Material
Handling And Storage

Zealcon-DGK-9000 TPD-MS-004
Issue # 001

Issue Date

Page 7 of 14

25-07-2016

Delivery schedules for all types of MATERIALS shall be reviewed by Site

Warehouse Incharge as and when required and updated by the Store
Officer in order to allow the pre-arrangement of manpower and suitable
equipment to assist with unloading. The schedules shall be reviewed
by the Site Manager or Project Manager at any time.

Utmost care shall be taken by Warehouse Incharge in the unloading to

ensure that no damage occurs to MATERIALS.

Prior to any unloading, packing cases or crates Store Officer shall

inspect for signs of damage during transportation, and where evident,
this shall be recorded on the Cargo Receiving Record, and as
necessary, photographs of the damage shall be taken for possible use
in the event of a later claim.

On unloading, Cargo Weigh Bill, which shall be issued by Transportation

Company, shall be received, checked and filed as record by the Store
Officer.

5.3 Unpacking And Inspection

5.3.1 Unpacking Inspection Schedule

Unpacking Inspection schedule for respective packages shall be

prepared by the Store Officer and submitted to the Warehouse
Incharge for his review.

Packed MATERIALS procured overseas shall not be opened without the

appropriate customs clearance, which, at the discretion of the customs
officials, may be carried out at the SITE.

5.3.2 Non-scheduled Unpacking Inspection

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Zealcon Engineering
(Pvt.) Ltd

Zealcon-DGK-9000 TPD-MS-004

Method Statement for Material

Handling And Storage

Issue # 001

Issue Date

Page 8 of 14

25-07-2016

In case any damage to the packing is found, Unpacking Inspection shall be

carried out by Store Officer and put to the notice Warehouse Incharge
officials for further actions.
5.3.3 Preparation of Unpacking Inspection
The Store Officer shall make the necessary preparations prior to
Unpacking Inspection and which are:

Establishing the inspection procedure according to the kind of packing

Provision of, as necessary, the area for the Unpacking Inspection

making available all necessary manpower, equipment, tools,
MATERIALS, etc., for unpacking and re-packing the MATERIALS

Designation of the place for storing of the MATERIALS after Unpacking

Inspection.

5.3.4 Unpacking Inspection

All Unpacking Inspection shall be carried out by the store officer or

Store keeper..

If any damage to packing is found prior to Unpacking Inspection, the

Store Officer Or Store keepers shall notify it to the Incharge Warehouse
and seek for his instruction.

All Unpacking inspection shall be carried out with the utmost care, to
ensure that no damage occurs to the MATERIALS.

Unpacking Inspection shall be carried out for the following checks.

1. Visual appearance inspection for
a. Damage to, and/or deformation of the MATERIALS
b. Rust or stains,

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Zealcon Engineering
(Pvt.) Ltd
Method Statement for Material
Handling And Storage

Zealcon-DGK-9000 TPD-MS-004
Issue # 001

Issue Date

Page 9 of 14

25-07-2016

c. Damage to, paint, coatings or linings, and/or blistering thereof

due to underlying rust.
2. Verification of Tag Nos., Valve Nos., ID Stamps, ID Markings. Etc.
3. Quantity verification.
a.

Damaged MATERIALS shall be stored separately by Store Officer

b.

The Store Officer shall prepare Unpacking Inspection Report and

submit it to the Incharge Warehouse for recording.

5.3.5 MATERIAL Excess, Shortage or Damage (ESD)

Where excess, shortage, or damage of the MATERIALS shall be

discovered, the Storekeepers shall prepare the Excess, Shortage or
Damage Report, and present it to the Store Officer with the relevant
Unpacking Inspection Report.

The Store Officer shall submit both reports to the Warehouse Incharage
for review and confirmation.

The Warehouse Incharge shall arrange for distribution of copies of the

ESD to the Site Manager/ Project Manager and the appropriate
departments of Site Office and, as necessary, shall request a
subsequent inspection by the Quality Control Department to determine
whether repairs are possible and what methods are to be adopted.

The Warehouse Incharge shall take any necessary steps for the
replacement of irreparable MATERIALS, or to make up any deficiency in
quantities, through one of the following actions:
1. Checking whether the available spare quantities can cover the
damage or shortage quantities,
2. Requesting local procurement and necessary approval by Site
Manager/ Project Manager.

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Zealcon Engineering
(Pvt.) Ltd
Method Statement for Material
Handling And Storage

Zealcon-DGK-9000 TPD-MS-004
Issue # 001

Issue Date

Page 10 of 14

25-07-2016

3. Preparing Request for Urgent Procurement.(RUP)

The Excess Shortage or Damage Report shall be prepared by Store

Officer for any excess, shortage and/or damage of MATERIALS, and
issued to the Site Manager/ Project Manager for their claim action to
VENDORs.

Request for Urgent Procurement (RUP) shall be prepared only when resending of replacement is required and issued to the Company (If
purchased by Company). (Where the damage or shortage can be
covered by the available spares, RUP is not required.). One (1) copy of
the relevant ESD shall be attached to.

5.3.6 Insurance Claim

Insurance claims for items of MATERIALS damaged, stolen shall be
processed, on behalf of the Company, by the Head of the Administration
Department, with all assistance provided by Warehouse Incharge and the
Store Officer in respect of reports, photographs, etc.

6. STORING
6.1 General
The Store Officer shall instruct his Storekeepers, the following

Correct storage of materials at the prescribed location.

Storing of MATERIALS by item, class, size, etc.

Maintenance of up-to-date records of quantities of the MATERIALS held

in the STORAGE FACILITIES.

Correct identification and marking of the various storage areas.

6.2 in Open Storage Area

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Zealcon Engineering
(Pvt.) Ltd
Method Statement for Material
Handling And Storage

Zealcon-DGK-9000 TPD-MS-004
Issue # 001

Issue Date

Page 11 of 14

25-07-2016

All MATERIALS stored in the OPEN STORAGE AREA shall be landed on

pallets or sleepers, and shall be tagged or marked for easy identification
by the Store Keeper.
6.3 Storing in Warehouse

All MATERIALS stored in the Warehouse shall be landed on pallets, on

shelves, on racks, or in bins, and shall be tagged or marked for easy
identification by the Store Keeper under the direction by Store Officer.

Pallets, racks, shelves, and bins must be designed to carry the

materials envisaged, in respect of size, weight and quantity.

6.4 Care and Protection of MATERIALS

Responsibility for the care and protection for stored materials lies with
the Storekeeper, under the direction of the Store Officer, until the
MATERIALS are issued to the respective Construction Engineer, and
after which, lies with the Construction Engineer until the Completion of
Work.

The periodical care and protection for the MATERIALS is to be carried

out, taking into consideration of the manufacturer's or Vendor's
recommendations.

6.5 Material Requisition And Issuing

6.5.1 Issuing of MATERIALS

MATERIALS shall be issued in accordance with the following conditions

and procedures to the Construction Engineer,
1. Free at the stored area in the WAREHOUSE, usually in an unpacked
condition, or

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Zealcon Engineering
(Pvt.) Ltd
Method Statement for Material
Handling And Storage

Zealcon-DGK-9000 TPD-MS-004
Issue # 001

Issue Date

Page 12 of 14

25-07-2016

2. Free on the ground in the OPEN STORAGE AREA, in a re-packed

condition, or in an unpacked condition as bulk material, or
3.

Free on the inland transportation carrier in the PLANT area, usually

in a packed condition as imported (Direct Delivery Materials)

MATERIALS shall only be issued from the Storage Facilities i.e.

warehouse and/or open storage area against Requisitions submitted by
the Construction Manager. The responsibility for the transportation of
MATERIALS from the Storage Facilities to the PLANT location or the
Construction storage facilities lies with the Construction Manager.

Issue of the MATERIALS is deemed complete when the Construction

Manager signs the copy of the REQUISITION acknowledging receipt.

The Storekeepers must enter daily, on the Stock Book and/or Bin Card,
the type and quantity of MATERIALS issued.

When the Construction Engineer has prepared the requisition, he must

receive approval from the Construction Manager for the construction
work on which the MATERIALS are to be used, and then from the
Warehouse Incharge.

REQUISITIONS consist of 04 sheets and both the Storekeepers and the

Construction Engineer shall sign at time of issue of the MATERIALS. as
proof of receipt.

REQUISITION copies are, subsequent to issue of MATERIALS, to be

distributed, as follows:
a. NO.1 Warehouse Incharge
b. NO.2 - Store Officer/Storekeepers
c. NO.3 - Material Coordinator
d. NO.4 - Construction Engineer

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Zealcon Engineering
(Pvt.) Ltd
Method Statement for Material
Handling And Storage

Zealcon-DGK-9000 TPD-MS-004
Issue # 001

Issue Date

Page 13 of 14

25-07-2016

6.6 Stock Taking

The storekeepers will carry out monthly stocktaking of all MATERIALS

being in the storage facilities, both within the Warehouse and Open
Storage Area.

The purpose of the exercise is to compare actual quantities of

MATERIALS held in stock with the quantities indicated on the Stock
Book, Bin Cards and/or Materials Issued Control Report.

The results of the exercise, i.e., surplus or shortfall of MATERIALS

shall be recorded by the Store Officer on Stock Book, and reported
to the Warehouse Incharge.

Additional stocktaking may be requested by the Warehouse Incharge

from time to time and the results will be recorded and reported in the
same manner as the regular stocktaking.

6.7 Return Of Issued Materials

Returning of issued MATERIALS may be required, due to mistake in

issuing, over-issuing, cancellation of planned works, etc.

In such cases, the form of Requisition shall also be used for

returning of MATERIALS having been once issued to the Store
Keepers

. Where previously issued MATERIALS are to be returned to the

storage facilities, the construction engineer

shall submit the

Requisition by describing the returned items, with a red stamp

saying "RETURN"

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Zealcon Engineering
(Pvt.) Ltd
Method Statement for Material
Handling And Storage

Zealcon-DGK-9000 TPD-MS-004
Issue # 001

Issue Date

Page 14 of 14

25-07-2016

The Storekeepers shall confirm that, the returned MATERIALS are

not defective, and shall sign the "RETURN" on Requisition, of which
copies are retained by the Construction Engineer, as proof of return.

When any MATERIALS are returned, the Store Officer shall record
the quantities on "Issued Quantities" of Stock Book as minus(-)
values.

6.8 Disposal Of Surplus Or Residual Materials

The Construction Engineer shall return all surplus or residual

materials, scrap Materials and packing materials, to the Storage
Facilities, at a place designated by the Store Officer.

On completion of the construction work, the Storekeepers shall carry

out the final stocktaking in the Storage Facilities.

A list of surplus and residual MATERIALS will be produced and

submitted by the Store Officer to the Incharge Warehouse, along
with a request for instructions for their disposal.

The disposal of surplus and residual MATERIALS, scrap MATERIALS

and packing MATERIALS shall only be carried out on receipt of a
written instruction by the PM/SM.

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