Vendor Procurement Process

Vendor Procurement

Process

TABLE OF CONTENTS

Learning Outcomes Page 1 VENDOR REQUIREMENTS

Vendor Requirements INTERNAL VENDOR SET-UP PROCESS Summary Page 3 Vendor Request Page 4 Vendor Look Up Pages 4-6 Vendor Packet Page 7 Vendor Insurance Pages 8-10 VENDOR SETUP Page 12 Vendor Request Form Page 12 Vendor setup in JDE Page 13 CONTRACT & LICENSE Determine if a Contract is Required Page 14 Vendor License Page 16 CONTRACT APPROVAL & PAYMENTS Contract Approval Page 18 Payment Request Page 19 Payment Delivery Page 21 Payment Exception Reports Page 22-23

Page | 1 Vendor Procurement Process

LEARNING OUTCOMES Upon comple�on of the Vendor Procurement Process Course, you will:

• Be aware of the different types of vendors and what the company requires from them to be an Approved Lewis Vendor

• Understand how to properly set-up an approved vendor • Understand the complete process a poten�al vendor must go through, from approval as a

Lewis Vendor to payment for services rendered • Know how to properly read the excep�ons report to determine why payment is being withheld


Complete a Vendor Packet

Provide proof of insurability1

Receive Insurance Department

ApprovalBe Set-Up in JDE as

a vendor2

Complete a Contract for the

property being serviced

VENDOR REQUIREMENTS Before goods are purchased, before a vendor is permitted onsite, and/or before a vendor begins working, the following items must be completed. 1For construction bids a certificate of liability and endorsements will be collected once the bid is awarded and a contract is prepared. Proof of insurance will need to be collected for approval. 2 If a contractor or vendor performs both construction design and construction services, then a separate vendor number will need to be assigned. Please advise AP when requesting vendor numbers.


INTERNAL VENDOR SET-UP PROCESS

CONTRACT APPROVAL & PAYMENTS-As applicable, confirm the contract has been approved by the legal department-If insurance specific to the project was not secured, verify proof of insurance-Payment requests, delivery & exception reports

CONTRACT & LICENSE

-Determine if contract is required. As applicable, prepare a contract or short form-As applicable, receive vendor licensing

VENDOR SETUP-Submit a vendor request form-Setup vendor in JDE-Accounting will assign a vendor number

VENDOR REQUESTS-A request is made for vendor work or supplies-Look Up the vendor to determine if the vendor is new or existing-If the vendor is new, have them complete and return a vendor packet


VENDOR REQUESTS Requests Made to Administrators

A new project, supply needs, or necessary repairs may prompt a request for a new vendor set-up or may initiate a review of an existing vendor’s insurance and liability paperwork.

When should you begin the vendor set-up process? Begin the vendor set-up process when a vendor has won a bid, and/or a contract is needed to begin work on a project. If you have only received bids from a vendor and you have not confirmed the vendor will be doing work for Lewis, you may receive paperwork and information from the vendor, but please do not submit your Vendor Packet until you are ready to officially use the vendor. Vendor Lookup

When a vendor request has been made, the Contract Administrator must confirm whether the vendor is a new or existing vendor. The process for looking up existing approved vendors will vary depending on the Region and Department:

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VENDOR LOOK UP (CONTINUED) Corporate Employees JDE Search for a vendor match in JDE by using the path below: Navigator > LOC View > Address Book – Vendor Inquiry

Use the vendor name or tax ID to search for the vendor in the system or use a “*” to perform a wildcard search. A wildcard search will pull up all vendors that contain the same characters entered into your search, rather than looking for an identical match. If there is more than one vendor with the same name, check the Display Address checkbox and look at the city to determine which to use for your region (SoCal, NorCal, or NV). Please Note: Although the RPM Vendor List provides Lewis Apartment Communities’ (LAC) approved vendors, vendors working at your property must have an executed master contract or a short form approved by the Legal Department for your specific property before the vendor may work on-site. Before beginning a project, please review the Determine if a Contract is Required Section of this booklet for additional requirements. Do not use any vendor with a “#” is in the name field. The “#” indicates a closed vendor that Lewis is no longer working with.

No JDE Results If vendor results are not found in JDE, begin the Vendor Packet process to start setting up the new vendor.

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VENDOR LOOK UP (CONTINUED) Residential Property Management (RPM) Employees

SOCAL Review the RPM Vendor List: Intranet > Property Management Links > RPM Vendor List NORCAL Contact the NorCal Regional Office Administrative Assistant to determine whether the vendor is a new or existing vendor. NEVADA Contact the Nevada Regional Office Administrative Assistant to determine whether the vendor is a new or existing vendor.


EXISTING VENDORS

If you determine the vendor is an existing Lewis vendor, please confirm (as applicable): The vendor’s insurance is current and in JDE The vendor’s license is valid The vendor has previously worked at the requested location

• Our contractors may work on several projects with various insurance requests; therefore, a short form may be required.

The vendor has worked with Lewis within the last two years The vendor does not have a # in the name field in JDE

If any of these requirements have not been met (or if you have questions regarding these requirements), please email the Insurance Department at [email protected] for further guidance; additional or updated documents may be necessary prior to working with the vendor. NEW VENDORS

If you have determined you are working with a new vendor, send the vendor a Vendor Packet to start the official vendor set-up process. VENDOR PACKET REQUIREMENTS

1. Vendor contact information fact sheet. 2. W-9 3. Certificate of insurance with applicable endorsements 4. Workers Compensation Exemption form (for vendors without employees)

LAND DEVELOPMENT CONTRACTORS

Contractors in the bid process will need to provide the completed packet with Proof of Insurance in this phase. The Certificate of Liability and endorsements will be collected once the bid is awarded and a contract is prepared. The certificate of Liability and Endorsements, naming LMC and the appropriate entity will be collected.

Vendor packets are prepared specifically for each Contract Administrator. Please contact the Insurance Department at [email protected] to request a packet to be prepared for you.

The Contract Administrator is responsible for:

1. Sending the Vendor Information Packet to the vendor. 2. Receiving the completed packet with all required documents from the vendor and reviewing for

completeness. 3. Forwarding the documents to the Insurance Department for approval.

PLEASE CONFIRM THE VENDOR NAME MATCHES ON ALL DOCUMENTS COLLECTED.

mailto:[email protected]



If insurance documents are required and the vendor only provides a one-page insurance document, the vendor has not provided all the required insurance documents. The endorsement page may be missing.

VENDOR INSURANCE To be considered eligible to perform work for us, certain vendor types are required to provide a copy of their Certificate of Insurance and Additional Insured Endorsement with the Vendor Packet. The Contract Administrator will need to confirm the following, prior to sending all required documents to [email protected] for approval:

Limits of Liability are at least as high as the minimum required The amount provided meets requested requirements The endorsements are attached:

▫ (1) Additional Insured Endorsement, ▫ (2) Completed Operations (required for licensed contractors only)

The policy dates are current Lewis and the locations of service are listed as “Additional Insured and Certificate

Holder” All legal names of the vendor are correct and match on all paperwork The certificate is signed

OUR INSURANCE REQUIREMENTS Vendors should discuss Lewis’ insurance requirements with their insurance agent/broker to see if they will need to make changes or adjustments to their policy.

If you have questions or need additional assistance ensuring the proper insurance has been provided, contact the Insurance Department at [email protected] To ensure all required documents have been received, reference the resources on the following pages. If a document is missing from the packet or if the paperwork has been filled out incorrectly, the vendor must make the necessary corrections before the packet will be approved by the Insurance Department

When the Insurance Department approves the packet, they will send an email to the Contract Administrator, which will indicate that a Vendor Request Form may be submitted.




To aide in determining what requirements a vendor might be subject to use the chart below for reference.


Samples of Insurance Documents:

Please Note: Not all Certificates of Liability Insurance and Additional Insured Endorsements look the same, there are many versions and the examples below are only samples.

Certificate of Liability – Sample 1. Name of Insured

(Vendor Name and Address)

2. Coverage Details (General Liability, Automobile Liability, Workers Compensation, & E&O)

3. Policy Effective Dates

4. Additional Insured (Lewis Management Corp. and Legal Name of Property)

5. Authorized Representative Signature

6. Certificate Holder (Lewis Management Corp.)

Additional Insured Endorsement – Sample 1. Policy Number

2. Additional Insured

(Lewis Management Corp. and Legal Name of Property)


Completed Operations Licensed Contractors will be required to provide a Completed Operations endorsement (a type of Additional Insured Endorsement) with their Vendor Packet. Completed Operations – Examples

BLANKET SCHEDULE

Blanket will say “per written contract or agreement”, covering any entity there is a contract with. Scheduled will only cover the entities listed on the “schedule”


VENDOR SETUP

VENDOR REQUEST FORM (SUBMITTED BY ADMIN) After the Insurance Department has approved the Vendor Packet, the Contract Administrator will fill out the Vendor Request Form.

The Vendor Request Form is located on the intranet homepage: Forms > Vendor Request Form

Alpha Name: Name, as it will appear in JDE for lookups. Usually the DBA (Doing Business As) name that appears on an invoice.

Tax ID: Either the Social Security Number (SSN) if the prospective vendor is an individual or the prospective vendors Tax Identification Number or Federal Identification Number.

Legal Name: The legal name associated with the SSN or Tax ID number. Address: Where the business would like its payments sent, including city, state, and

postal code. Vendor Type: See Vendor Type Chart Region: Geographical region the vendor is operating. Organization Type: Type of company the vendor operates as (LLC, Corporate, etc.) Employee #: LEAVE BLANK Business Phone & Fax Number: Vendor phone number and fax number (if applicable) Contact: Name of the primary contact for the prospective vendor Title: Title/role of the contact

Click “Submit” to send the Vendor Request Form to the Accounts Payable Department.

Questions: Contact [email protected]

VENDOR SET-UP IN JDE

Accounting will complete the vendor set-up in JDE and will assign a vendor number. Accounting will send an email to the Contract Administrator when the vendor has been assigned a vendor number.



Until the vendor has been approved and setup in JDE:

Questions: Contact [email protected]

1. No ContractsA contract should not be written

2. No Vendors On-SiteVendors should not be on-site

3. No Work DoneNo work should be completed

4. No PaymentsA check cannot be issued



CONTRACT & LICENSE

DETERMINE IF A CONTRACT IS REQUIRED

The Contract Administrator will review the vendor’s projects/tasks/responsibilities and will determine what type of contract may be required and whether it is a Master Contract or Short Form. This will be necessary before a vendor may begin work.

Any questions that arise regarding whether a contract is necessary should be directed to the Contract Administrator, a supervisor, or the Legal Department.

DEFINITION: The term “contract” for vendor set-up purposes is defined as a written legal document outlining the terms and conditions of the service(s) being provided by a vendor; this contract is prepared by a Contract Administrator using a legal form template located on the X-Drive. This type of contract is different from the JDE termed “contract”.

Contracts set-up in JDE are considered monetary “work agreements” and not a legal contract that reduces risk and liability for our companies.

Master Contract Types Master Contracts may be required for new vendors and for some existing vendors (Amendments, etc.).

Short Form

Consultants

Licensed Contractors

Service Contractors/Vendors


A Short Form may be required for existing vendors who already have a Master Contract in place and would like to work at another Lewis property or location. When a Short Form is necessary, a vendor will be required to sign the contract before beginning work.

Important: Existing vendors are required to have an executed contract for each location they work. Although a vendor may be considered an “approved vendor,” before any work may be completed on-site, we must ensure the vendors have a Master Contract or Short Form for the specific location they will be working.

Example: Superior Carpet Care is an approved carpet vendor for Carmel Apartments, and they have completed a Master Contract approving service at Carmel Apartments. If Homecoming at the Preserve would like to use Superior Carpet Care, they would need to confirm with the Contract Administrator that a Short Form has been executed and approved before Superior Carpet Care would be able to begin any work at Homecoming at the Preserve.


VENDOR LICENSE Contractors Contractors are required to submit their Contractor’s License with the Vendor Packet. The Contract Administrator may confirm the Contractor’s License is current and active by reviewing the following website:

California website: https://www2.cslb.ca.gov/OnlineServices/CheckLicenseII/checklicense.aspx

Nevada website: https://app.nvcontractorsboard.com/Clients/NVSCB/Public/ContractorLicenseSearch/ContractorLicenseSearch.aspx


Contractor’s License - Examples

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CONTRACT APPROVAL & PAYMENTS

CONTRACT APPROVAL When a vendor has signed and returned a contract though DocuSign, it should be signed by an authorized agent and sent to the Legal Department, Insurance Department and Scanning.

Questions or clarifications should be directed to the Legal Department.

After all required documents have been obtained and approved by the Insurance Department, and any necessary contracts have been approved by the Legal Department, the vendor may begin work.


PAYMENT REQUEST When a vendor requests payment for goods or services, the Contract Administrator will need to obtain appropriate payment request documents (such as an invoice, a progressive billing worksheet, or a check request specifying the goods or services provided) that detail the amount due.

CODING, FUNDS, AND PREPARATION

Before submitting the Payment Request to the Accounting Department, the Contract Administrator must review and confirm:

*Please Note: The term “contract”, for payment purposes, is a reference to the contract set-up in JDE (not the legal contract on the X-Drive). This contract is considered a monetary work agreement and not a legal contract that reduces risk and liability for our company.

The cost code for the goods or services

1. Cost Code

The PO or Contract* has enough funds to pay the vendor

2. Enough FundsThe Payment Request Documents

have been stamped with an accounting approval stamp and is

filled out correctly.

3. Approval Stamp

Definition:


SUBMITTING PAYMENT REQUESTS

The Contract Administrator will submit the prepared invoice, progressive billing worksheet, or check request to the Accounting Department through interoffice mail.

The Vendor Set-Up section of this booklet will be the best guide to ensuring all requirements have been met to pay a vendor, but you may use the chart below as a quick reference for understanding basic vendor payment requirements.

For Questions contact [email protected]



PAYMENT DELIVERY There is one check run each day. Accounting will work as quickly as possible to process the requested check.

Checks will be processed if the requested account has proper funding, and all applicable documentation is provided, which may include insurance, licensing, a signed contract, receipt(s), etc.

Contract Administrators should review the Daily Exception Reports to confirm nothing is preventing a check from being processed. See the Payment Exception Reports section of this booklet to determine what may be stopping a check from being processed and how to resolve any issues.

Delivery Time

Delivery timing of your check may vary. If funding is available, and proper documentation is submitted, you can expect any invoice submitted by 4pm to be processed within 2 to 3 corporate business days.

Please submit construction draws by 1pm to receive the check within 2 to 3 corporate business days.

Note that checks for large sums may require up to 2 corporate business days’ notice. This will ensure the funds are available and/or an executive is available to hand-sign the check. Contact [email protected] to check for insurance, contracts, and updated licensing.

The Insurance Department is able to check a vendor’s insurance, contract, and/or licensing at any time to avoid a check from being held. You may contact [email protected] prior to submitting an invoice to Accounts Payable, and the Insurance Department will review the vendor requirements to confirm nothing is missing.

PAYMENT EXCEPTION REPORTS The Insurance Department processes Exception Reports on a daily basis. These reports identify vendors who are missing documents that are preventing the vendor from being paid. Contract Administrators should check the Exception Reports on a daily basis to confirm vendors providing goods or services to their department are not on any of these lists.


There are three different Exception Reports:

If a vendor is on any of the three lists, payments for this vendor will not be processed until all issues have been resolved.

EXCEPTION REPORT DETAILS

The Exception Reports are located on the X-Drive > Daily Exception Reports.

1. VENDOR PAYMENTS WITHHELD FOR INSURANCE/CONTRACTS Insurance Contracts The report will list these vendors as No "Valid" The report will list these vendors as No "Gen. Liab"

The vendor’s insurance is expired, or no insurance information is available.

No Contract is found.

After a vendor has been set-up and approved in JDE, the Insurance Department will attempt to contact the vendor to obtain a copy of their current insurance when it has expired.

Checks will clear after the missing insurance is obtained by the Insurance Department and entered into JDE.

This report is checked against the MOC, SMA, AIA, MCA, and MSA Indexes located on the X-Drive (and LDOCs). See the Contract Approval section of this booklet for more information.

If no contract is found, the contract writer will be contacted by the Insurance Department to complete the contract.

These checks will not clear until the contract is in place on the index by the Legal Department.

PAYMENT EXCEPTION REPORTS (CONTINUED)

2. VENDOR PAYMENTS WITHHELD FOR LICENSING Vendors appearing on this list will be state licensed contractors. JDE requires California and Nevada Contractor's Licenses to be updated approximately every three months. JDE tracks and notifies us when it is time to update

1. Insurance /Contracts

2. Licensing

3. Not Signed


the license. Unfortunately, there is no way for us to know when specific vendors will appear on this list, but vendors on this list are reviewed and cleared first each morning. If the contractor has a valid state contractor’s license, and this is the only reason the vendor is on the exceptions report, the check will clear the next business day.

3. VENDOR PAYMENTS WITHHELD FOR CONTRACT* NOT SIGNED Vendors on this list have been placed on hold because something has not been completed or approved in JDE. Any changes made to an existing contract in JDE that has not been “signed” will cause a check to hold. The Contract Administrator must resolve these issues in order for checks to clear.

*Please Note: The term “contract”, for payment purposes, is a reference to the contract set-up in JDE (not the legal contract on the X-Drive). This contract is considered a monetary work agreement and not a legal contract that reduces risk and liability for our company.

If you have a large invoice or other special circumstances with your vendor and want to make sure the check will not be withheld for any reason, please contact the Insurance Department at [email protected], prior to sending the invoice to AP Support.

Definition:


Vendor Procurement Process

Documents

Transcript of Vendor Procurement Process