Policies & Procedures

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KOLTER HOMES Policies and Procedures

Policy Number: Policy Name:

5.5.7

Issued Date: Revised Date:

April 13, 2016

Vendor Change Process

4/14/2016

Authorized By:

___________________________________

Date: _______________________

Doug Bruk, Executive VP Kolter Homes

4/14/2016

Authorized By:

___________________________________

Date: _______________________

Rick Covell, President, Kolter Homes

Policy:

To release and replace a vendor that is not working according to the Kolter Homes standards which could include, but not limited to lack of performance and/or pricing issues. Also adding a new vendor to a community.

Responsibility:

The purchasing department will work in conjunction with the construction department during all phase of this process

Procedure:

Expectations:

- Release and Replace a vendor in a timely manner, without interrupting work schedules at the community

Request and Coordination:

- Request can come from either Construction or Purchasing, request to release needs to include the reason for release and replacement of the vendor - Coordination of the release and replacement will be done by the Purchasing Director once the letter is sent to the subcontractor. The Purchasing Agent or Director of Purchasing will obtain new pricing from tentative vendors and/or re-open the communities for bidding if necessary.

Processing:

- Performance warning o A meeting will be scheduled with the vendor to outline any and all issues. Kolter Homes representatives and the vendor will come to an agreed upon timeline to rectify the said issues (between 5 to 30 business days) and a letter will be sent or given to the vendor - 48 hour warning (receiving the certified letter back) o A letter will be sent to the vendor via certified mail to notify them of Kolter Homes intent to replace them if immediate action is not taken to resolve said issues within 48 hours - Termination letter o A termination letter will be sent to the vendor via certified mail to notify them of Kolter Homes intent to replace them

Processing a release and replacement:

- Director /VP of Construction will fill out the “Release of a Vendor Change Form” , date, subdivision(s) and reason for the changing of a Vendor o Construction Department will obtain the following signatures: - Construction Manager - Area Construction Manager

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