BPI Procurement Policy

Group Policy & Procedure	Document No.	P-POL-009
Group Supply Chain	Ver. No. | Rev Date	0.4 | 08 APR 2026
Title: BPI Procurement Policy	Effective Date	08 April 2026

BUKHATIR GROUP

Strength through Diversity

Group Policy and Procedure

Group Supply Chain (GSC)

BPI Procurement Policy

Services Procurement via Group Channel

Document No: P-POL-009

Copyright © 2026 Bukhatir Group

Revision Control

This document is issued under the authority of Bukhatir Group and applies when carrying out the activities described. Revisions may be issued as necessary under the authority of the Group Head of Procurement. Revision history is recorded below with every revised policy.

Revision History

Ver. No.	Effective Date	Description
02	September 2016	Original Procurement Policy
0.3	March 2026	Procurement Policy – BPI Procurement Policy
0.4	08 April 2026	Redesign, content modernization & flowcharts – BPI Procurement Policy

Revision Sign-Off

Approving Committee	Name	Signature
Endorsed by — Group Head of Supply Chain	Mohamad Koussa
Reviewed by — BIIL CEO	Mr. Ayman Ismail
Reviewed by — Group Chief Financial Officer	Mohamad Adnaan Sait
Approved by — Group Vice Chairman & Group CEO	Mr. Salah Bukhatir

Distribution List

#	Departments
1	Business Unit Procurement Departments
2	Group Supply Chain (GSC)
3	Finance, Legal, Compliance, Internal Audit
4	Business Unit Management

1. Purpose

This policy establishes the mandatory guidelines for procuring services at Bukhatir Precast Industries (BPI) exclusively through the Group Procurement function. It ensures consistency, compliance, transparency and efficiency in BPI's procurement practices, while maximising value for projects and alignment with the overarching Bukhatir Group Procurement Policies (SOP 1–7).

2. Policy Statement

SINGLE CHANNEL — GROUP PROCUREMENT All procurement of services at BPI — including engagement with contractors, sub-contractors and consultants — SHALL be conducted solely through the designated Group Procurement process. Individual employees are strictly prohibited from directly approaching or engaging any contractor or consultant without prior written approval from the Group Procurement Department.

3. Scope

This policy applies to all employees, contractors and consultants of BPI involved in any aspect of the procurement of services. It is to be read together with SOP 1 (Purchase Requisition), SOP 2 (RFQ), SOP 3 (LOI), SOP 4 (Purchase Orders), SOP 5 (Supplier Evaluation) and SOP 6 (BU–Group Interaction).

4. Group Procurement Process

4.1 Approved Vendor Pool

The Group Procurement Department maintains a formal Approved Vendor Pool for BPI's contractors, sub-contractors and consultants. The pool is reviewed at least annually to confirm continued quality, financial health, HSE performance, compliance and alignment with UAE and industry standards. Vendors not on the pool may not be engaged without a formal onboarding exercise under SOP 5.

4.2 Request for Services

Employees requiring services shall submit a formal Purchase Requisition (PR) via the Oracle system to the Group Procurement team. Every request shall include, as a minimum:

• Project and cost-centre details, including a clear business case.

• Detailed scope of work (Technical and Commercial).

• Budget considerations and confirmed funding source.

• Required timeline and delivery milestones.

• HSE, quality and regulatory requirements where applicable.

4.3 Vendor Selection

The Group Procurement team evaluates each request and selects appropriate vendors from the Approved Vendor Pool using the weighted best-value criteria defined in SOP 2. Selection criteria include:

• Experience, qualifications and relevant track record.

• Past performance on Group projects (OTIF, quality, HSE, responsiveness).

• Cost-effectiveness and Total Cost of Ownership.

• Compliance with UAE regulations, ESG standards and In-Country Value commitments.

4.4 Contracts Approval Process

All contracts with vendors, contractors and consultants shall be routed through the Group Procurement Department for approval. The approval process comprises:

1. Review of contract terms and conditions against the Group Standard PO T&Cs (Annex 4A).

2. Verification of compliance with BPI policies, the Group Delegation of Authority and relevant UAE law.

3. Legal review where value or risk triggers the thresholds defined in SOP 3.

4. Final approval by the designated Procurement Officer — no contract may be signed before this step.

4.5 Closed Tenders for Projects

Group Procurement arranges all closed tenders for BPI project works. The tendering process follows SOP 2 and comprises:

• Development of a complete tender dossier (RFQ, CSW, TSW, LOC).

• Issuance of the tender to pre-qualified vendors from the Approved Vendor Pool.

• Receipt and evaluation of sealed bids using the weighted scoring model.

• Selection of the winning bid based on pre-defined commercial, technical, ESG and ICV criteria.

• Documented award decision and issuance of the LOI / PO.

4.6 Communication

All communication with approved vendors shall be conducted through the Group Procurement team. BPI employees shall route all inquiries, clarifications or discussions regarding services through this single channel to ensure proper documentation, audit trail and compliance. Direct side-channel communication with vendors (email, phone or meeting) regarding commercial matters is prohibited.

5. Compliance

DISCIPLINARY CONSEQUENCES Failure to adhere to this procurement policy may result in disciplinary action, up to and including termination of employment. All BPI employees are expected to comply with this policy and actively promote a culture of accountability, ethics and transparency in procurement.

6. Review & Amendments

Input Tax Credit (ITC) Compliance — FTA Decision No. 13 of 2026

Effective 1 October 2026, BPI procurement activities must comply with FTA Decision No. 13 of 2026 and P-POL-032 regarding ITC verification.

• All BPI supplier engagements are subject to the same ITC verification requirements as standard procurement. Complete Form F-ITC-01 for each supplier and Form F-ITC-02 for each supply.

• Where BPI procurement involves cash payments, ensure compliance with the electronic payment preference and cash payment documentation requirements under Article 4.2 of the FTA Decision.

• BPI procurement managers must verify that supplies fall within the supplier's commercial license scope and that prices are commercially justifiable.

Reference Forms

Form F-GRN-01 — Goods Received Note (GRN)

Form F-PQQ-01 — Pre-Qualification Questionnaire

Form F-SPR-01 — Supplier Performance Scorecard

This policy shall be reviewed annually and updated as necessary to reflect changes in UAE regulations, industry best practices, or the organisational needs of BPI and the Group. Employees shall be notified in writing of any amendments via the Group Supply Chain communication channels.

• Form F-ITC-01 — Supplier ITC Verification Checklist

• Form F-ITC-02 — Supply ITC Verification Checklist

7. Effective Date

This policy is effective from 08 April 2026 and supersedes the prior BPI procurement instruction dated 01 October 2024.

8. Flowchart

Figure 10: BPI Procurement via Group Channel

9. Definitions & Acronyms

Acronym / Term	Definition
AED	United Arab Emirates Dirham
BPI	Bukhatir Precast Industries
BU	Business Unit
DOA	Delegation of Authority
GRN	Goods Received Note
GSC	Group Supply Chain
KPI	Key Performance Indicator
Oracle	Enterprise Resource Planning System
OTIF	On-Time In-Full
PO	Purchase Order
PR	Purchase Requisition
QCS	Quotation Comparison Statement
RFQ	Request for Quotation