Purchase orders in construction
A purchase order (PO) is a document that is issued by a buyer to a seller, indicating their intention to purchase certain products or services. On construction projects, POs are typically used to control the purchasing of products and services from suppliers, and are then retained for record keeping.
A PO may include the following information:
- The PO number.
- A description of the products and / or service being purchased.
- Technical details if required.
- Quantities.
- Any discounts to be applied.
- Agreed prices.
- Payment terms.
- Shipment dates.
A PO may be a legally-binding agreement where there is no existing contract, it is only when the supplier accepts the PO that it become a legal contract.
Invoices are documents issued by a suppliers to buyers, summarising the products or services that they have purchased (or have agreed to purchase). Invoices invoice will usually reference a PO number (if there has been one) to assist with record keeping and avoid confusion.
NB A blanket purchase order is: 'A special purchase order typically designed to leverage repetitive requirements and emergency repairs involving low value goods and services, while reducing the administrative workload.' Ref UN Procurement Practitioner's Handbook, produced by the Interagency Procurement Working Group (IAPWG) in 2006 and updated in 2012
[edit] Related articles on Designing Buildings Wiki
Featured articles and news
Specifying rendered external wall insulation for fire safety
How to interrogate the evidence provided to the specifier.
The benefits of writing articles for your organisation
How to create a profile for your organisation and publish for free.
No Falls Week. The importance of safe working at height
What to expect and what is on offer to avoid accidents.
Scottish Government action to reach net-zero targets
Retrofit expert group highlight critical actions needed.
A forward thinking, inclusive global community of members.
From engineered product life-spans, to their extension.
Circular economy in the built environment
A brief description from 2021. Where are we now?
Mental Health Awareness Week with ABS
Architects Benevolent Society programme of activity.
CLC publishes domestic retrofit competency framework
Roadmap of Skills for net zero.
May 13-19: Moving more for our mental health.
Understanding is key to conservation.
Open industry engagement survey seeks responses
Institutions and the importance of engagement.
National Retrofit Hub unveils new guide
Digital Building Logbooks and Retrofit: An Introduction.
Enhancing construction site reporting efficiency
Through digitisation and the digital revolution.