Purchase Order

Construction purchase order (PO) definition. Learn how POs protect contractors by locking in material pricing and delivery terms.

Calculation Formula

PO Total = (Quantity × Unit Price) + Tax + Shipping

Real Contractor Example

A contractor orders 50 sheets of drywall from a supplier. They issue a PO for $1,250 to lock in the price before an upcoming tariff increase.

Put This Into Practice

Knowing the definition is step one. RemodelFin tracks this in real time on every job — no spreadsheets.