Free Purchase Order Template for Contractors
Contractors need accurate materials orders to keep projects on schedule and within budget. A purchase order confirms quantities and prices before delivery, protecting both parties if disputes arise on site.
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What goes on a contractor's purchase order to suppliers?
A contractor issues a purchase order to trade suppliers to authorise materials and tools before they reach site. List each item with the quantity, section or specification, and the agreed trade price, plus the job it is for. The PO gives the supplier an approved order, and the delivery note and invoice quote its number.
Typical line items
- Lumber and framing by section and length
- Concrete, mortar, and aggregates (by bag)
- Fixings and fastenings
- Tools and consumables
- Safety equipment and PPE
- Job or site reference
- Agreed trade price per unit
- Delivery date and site access notes
How the work is charged
Materials are priced per unit, per bag, or per length at agreed trade rates, with tools as a one-off cost. The purchase order records the figures so each delivery can be checked against approved costs.
Payment terms and deposits
Trade accounts commonly run net 30 from end of month. The order authorises spend up to its total, and the supplier should quote the PO number so deliveries reconcile against the right job.
Tax and compliance
If sales tax or VAT applies, list it separately with the registration number. Construction supplies and some work carry distinct rates in places, so confirm what applies to the order.
Frequently asked questions
Why should contractors use purchase orders?
POs create a binding record of agreed materials, prices, and quantities before delivery. This prevents billing surprises, helps with job costing, and provides documentation for client invoicing.
What should a contractor PO include?
List materials with specifications (size, grade, brand), quantities, unit prices, the delivery site address, required delivery date, and any project or job number for tracking.
Can I use a PO for subcontractor services?
POs are typically for goods. For subcontractor services, a subcontract agreement or scoped work order is more appropriate, although some businesses use POs for straightforward service engagements.
Related purchase order templates
Read the complete purchase order guide to see what a purchase order needs and how it leads to an invoice.
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