Procurement Policy

Effective date: 6 November 2026

1. Scope This policy governs material requests, RFQ distribution, quotations, comparison, item selection, order confirmation, fulfilment tracking and related support. Lighthouse provides coordination unless a signed scope expressly appoints it to purchase, manage execution or act as agent. A plan or AI estimate is not a final BOQ. The buyer or appointed professional must approve technical requirements and procurement quantities.

2. Preparing a request State the product/category, model where known, quantity and unit, acceptable alternatives, delivery location, timing, scope and relevant specifications. Identify whether quantities are estimated or approved. Share only the drawings and personal data needed for pricing. Do not fabricate demand, circulate confidential tenders without authority or solicit bids to manipulate competitors. Suppliers may decline requests outside their category, stock or service area.

3. Quotation requirements A quote must identify supplier, exact product/variant, quantity, unit and pack size, unit and total price, taxes, delivery/handling/installation costs, validity, stock confirmation, lead time, payment stages, warranty, returns and exclusions. “Equivalent” alternatives require clear identification and approval; do not substitute an AI-matched product without checking technical compatibility. Changes to price or timeline before acceptance must be clearly communicated.

4. Comparison and award Compare like-for-like units, accessories, taxes and delivery obligations. Initial quote comparison may use supplier codes where lawful, but disclose the seller information required by law before binding acceptance. The workflow must distinguish shortlist, provisional selection and final acceptance. If the existing “award” button hides seller identity, treat it as provisional and add a disclosed confirmation step before creating contractual obligations. Each awarded item creates the recorded commitment with its identified supplier. Store the accepted quote version and authorised approver. A rejected quote is not an order; a supplier’s “Won” status is not payment confirmation.

5. Approved changes A change order must identify the original item, proposed substitution/quantity/price/date change, reasons, financial effect and buyer approval. Silence does not approve an adverse substitution. Keep an audit trail and communicate downstream effects on other items. If stock fails or delivery changes, promptly offer the buyer lawful options including cancellation/refund where applicable. Do not make the buyer accept a different brand solely because an item was displayed as available.

6. Payment, delivery and completion The accepted order specifies payer, recipient, milestones and payment method. Do not claim escrow or credit guarantees unless contracted. Platform service fees are separately disclosed and invoiced. Delivery records should identify item, quantity, date, recipient and visible condition. Log partial deliveries, shortages, damage and pending items separately. Upload the seller invoice and warranty evidence. A delivery receipt proves the stated receipt, not satisfaction of every specification. Closing a workflow does not waive a defect claim or mandatory remedy. Reviews must reflect actual experience.

7. Disputes, confidentiality and fees Use order references, quote versions, invoices and evidence for disputes. The grievance, returns, warranty and refund procedures remain available. Preserve relevant documents without exposing competitors’ confidential quotations. Any Lighthouse fee requires an accepted schedule stating attribution, calculation base, taxes, trigger and treatment of returns/cancellations. Off-platform fulfilment of an attributable order may still be reportable where agreed; no undisclosed fee applies to every later transaction.

Internal workflow note Current labels can be mapped as Pending/New: intake; Quoted: response received; In Progress: coordination; Won: supplier award record; Delivered: receipt recorded; Completed: workflow closed; Rejected: declined. These labels alone must not define legal acceptance. Product must publish one clear binding confirmation event and train staff accordingly.

8. Authority, tender confidentiality and approvals A request submitted by an architect, employee, agent or contractor must identify the actual buyer and the scope of that person’s purchasing authority. Authority to seek quotations is not authority to accept an order or change a budget. Before acceptance, identify the approving person and record any amount, category or project limits. Lighthouse may seek written authority where instructions conflict. Drawings and tender documents must carry revision identifiers and the minimum necessary distribution. Do not send one bidder another bidder’s confidential price or design without

authority. Public procurement, regulated tenders and customer procurement rules require their own compliant process; the ordinary RFQ flow is not a substitute for mandated tendering.

9. Specification and commercial comparison A comparison should show brand, model, finish, dimensions, technical standards, unit, pack size, quantity, wastage basis, accessories, installation scope, availability, price validity and delivery assumptions. If quotations are not equivalent, highlight the difference instead of ranking them solely by total. The buyer or its professional must approve the final specification and quantities. Suppliers must identify deviations and proposed equivalents expressly. An AI similarity score, a salesperson’s verbal assurance or a photograph does not replace the approved specification. Samples or mock-ups should state whether they establish colour, finish, performance or another limited characteristic.

10. Milestones, variations and shortage management Every material variation must state its reference, technical change, price/tax effect, delivery impact and approving party. Record whether it replaces or supplements the original order. A supplier must not invoice an unapproved upgrade or silently reduce quality to preserve its margin. For partial availability, separate ready stock, back-order stock and discontinued items. Obtain approval for staged delivery and any resulting extra freight. Escalate schedule risks promptly; a missed project milestone does not automatically entitle either party to unlimited consequential damages or excuse all outstanding duties. At handover, reconcile ordered, delivered, rejected, returned and pending quantities; invoices, payments and credits; warranty documentation; and unresolved defects. Preserve the underlying record even when the interface displays “Completed.”

11. Payment and anti-diversion safeguards Verify a changed collection account through an independent channel already associated with the supplier. Staff must not request OTPs or receive procurement funds in personal accounts. Where advance payment is required, state the amount, purpose, protection if any, cancellation implications and evidence of receipt. A recommendation, preferred-supplier status or platform badge is not a guarantee of supplier creditworthiness. Buyers should assess exposure for large advances and may agree inspections, staged payment or bank-backed protection directly. Lighthouse undertakes such protection only through an express written service.

12. International procurement schedule An international RFQ must specify destination standards, measurements, required language, export packaging, shipping documents, conformity evidence and service territory. The accepted order must assign export clearance, import clearance, duties, insurance, carriage,

unloading, loss risk and return costs. If an Incoterms rule is used, state the named place and version; the label alone does not settle ownership, payment or every remedy. A local professional must confirm destination suitability. An Indian product approval or manufacturer warranty may not extend to another country. Sanctions, export restrictions and import prohibitions must be screened where applicable before accepting or facilitating supply.

13. Record integrity and disputes Retain accepted quote versions and approvals rather than overwriting them with later edits. Identify who changed a record and why. Both parties should submit relevant evidence promptly; settlement credits must identify which items and claims they resolve. A settlement of a price dispute does not waive an undisclosed safety defect or non-waivable consumer right.

14. RFQ scope and document register An RFQ should identify the project or purchase reference, specification revision, quantity basis, intended delivery location and person authorised to approve commercial commitments. Drawings, BOQs, schedules and written instructions must be identified by version. If they conflict, the buyer must clarify the intended requirement before a binding award; bidders must not silently select whichever interpretation produces the lowest apparent price. Alternatives must be submitted separately from the compliant base offer. An alternative should state the manufacturer, model, performance differences, compatibility issues, lead time, warranty and price effect. A cheaper alternative is not approved merely because the comparison screen displays it alongside the specified product.

15. Bid handling and changes before award Suppliers must state assumptions, exclusions, dependencies and quote validity. A buyer requesting a revised price or specification should provide equivalent material information to competing suppliers where necessary for a fair comparison. Lighthouse must not fabricate competing offers, disclose another bidder's confidential rates to force a reduction, or represent an unconfirmed quotation as binding. A withdrawn or superseded bid must remain distinguishable in the audit history and must not be accepted accidentally. The buyer may reject all quotations before commitment, subject to any separate agreed tender obligations. Submission of an RFQ does not promise minimum purchases, exclusivity or reimbursement of bid preparation costs.

16. Approval thresholds and purchase authority The buyer is responsible for identifying who may approve an award, variation, advance or receipt. Lighthouse will apply the authority controls it expressly supplies and will not treat an AI output, a junior employee's comment or an unauthenticated message as sufficient authority for a binding change. Where approvals are staged, record the technical approval separately from the commercial approval and payment authorisation. A technical approval that a product meets specification

does not approve its price. A payment approval does not certify that installation is complete. If an approval is disputed, preserve the relevant records and pause the affected unperformed action where reasonably possible.

17. Change orders and urgent substitutions Every material change should identify the original order line, requested variation, reason, additional or reduced cost, delivery effect and approving parties. The seller must not ship a substitute first and seek consent only after delivery. Oral emergency instructions must be confirmed through an authorised record as soon as practicable; legal rights arising from actual conduct remain subject to law. A change caused by seller error must not automatically be charged to the buyer. A buyer-requested change after custom fabrication starts may involve reasonable supported costs under the accepted terms. Undisputed parts of the order should continue where safe and commercially separable.

18. Inspection, completion and financial close Goods receipt should record delivered quantity, visible condition and shortages separately from technical acceptance and final account settlement. Where testing or commissioning is included, identify the responsible person, criteria and documents required. Signing for packages is not certification of concealed quality. Before closing an order, reconcile invoices, delivery lines, approved changes, returns, credits and outstanding claims. Retain traceable warranty and product information. Marking a workflow “Completed” is an administrative event; it does not release latent-defect claims, unpaid lawful balances or statutory remedies.

19. Conflicts, inducements and independent judgment A person involved in comparison or award must disclose a material financial interest, referral incentive or connected-party relationship that may affect the recommendation. No party may offer kickbacks, sham quotations, undisclosed rebates or gifts intended to corrupt the process. Suspected manipulation may be investigated with proportionate confidentiality. Procurement support is limited to the scope expressly accepted. Lighthouse does not become the buyer's general purchasing agent, quantity surveyor or site supervisor merely by organising quotations. Any agency, inspection or project-management service requires a separate appointment defining authority and responsibility.