Purchase orders (PO) procedure

A purchase order is the standard document used to purchase goods and services

Process

A purchase order is a contract between PEER Construction and a vendor. Using a purchase order to initiate purchases ensures that transactions are covered by a proper contract. A properly completed purchase order is a legally binding contract and should be treated accordingly

Requests for purchases must be processed through the Purchasing Department on the Purchase requisition/order form. The purchase order is the standard instrument used to procure goods and services. All PEER Construction procurement transactions require a purchase order

A regular purchase order is issued for a one-time procurement of a commodity or service. When the commodity or service is delivered and paid in full, the order is complete.

Oral requisitions/purchases are not considered valid purchases by PEER Construction requisition. The requisitioning department is responsible for defining quantity, quality, specifications, delivery date requirements and all other pertinent information essential to making a proper purchase.

Departments submitting a requisition are requested to follow the guidelines shown on the Purchase requisition/order form.

All purchase orders must include the following or they will be returned to the department.

• Vendor name – must contain full name and address of vendor. Also include contact name, phone number if available.
• Shipped to – must contain full name and address for delivery of order.
• Description – the purchase order must contain a complete description of the goods and/or services. You must describe what the item(s) is that you are ordering.
• Quantity – enter quantity of each item to be ordered. All items should be listed in the body of the purchase order. “See Attached” is not acceptable.
• Unit price – enter price of each item.
• Subtotal price – enter total price of purchase order.
• Total amount – enter total dollar amount of order.
• Purchase order completed by – print the name of individual generating the order.
• Authorising supervisor – print name of supervisor approving the order.
• Signature – proper signature(s) must appear (name must be printed legibly) or the purchase order will be returned.
• Date – date of the purchase order must be added.