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Open the PO generatorWhen to use a construction PO
Use construction POs for any material purchase from a supplier (lumber, concrete, fixtures, electrical), subcontractor scopes (framing, plumbing, electrical, drywall), and equipment rentals. The PO documents the agreed price, job assignment, and delivery requirements before work or material flows.
Construction-specific fields
Construction POs benefit from a job site address (separate from the contractor billing address), a project or job number that ties the PO to a specific build, scope language for subcontractor POs, and references to lien waivers and retainage in the terms section.
Sample line items
| Description | Qty | Unit price |
|---|---|---|
| Framing lumber package — Job 2024-117 | 1 | $8400.00 |
| Concrete delivery — 12 yards | 12 | $165.00 |
| Subcontractor: rough electrical | 1 | $6500.00 |
Suggested terms: Delivery to job site address above by date specified. 10% retainage held until project completion and lien waiver received. Net 30 from delivery or completion of scope.
Frequently asked questions
How is a construction PO different from a regular PO?
Construction POs typically include a job site address, project or job number, and references to construction-specific terms like retainage, lien waivers, and progress billing. Otherwise the structure is the same.
Can I use this for subcontractors?
Yes. Use the line items section to describe the scope of work and the agreed amount. Include scope details, completion criteria, and payment milestones in the terms section.
What about retainage?
Note any retainage percentage and release terms in the PO terms section. Most construction POs withhold a percentage of payment until project completion to ensure satisfactory delivery.