ABSTRACT
This chapter deals with some of the general principles of project purchasing and purchase order preparation. It focuses on those aspects of purchasing and materials control that occur after the issue of a purchase order. In addition to the issue of purchase orders, the materials management function generally includes inspection or checking of goods upon receipt and handling and safe storage facilities. There are two main parts to this particular type of specification: a statement of the relevant commercial conditions and a description of the goods. The purchasing cycle is initiated by the discovery of a need for raw materials, components or a larger item of equipment. Moving one more step round the cycle, the order has to be prepared and sent to the supplier. When the supplier has received the purchase order, complete with its set of conditions, the supplier is expected to acknowledge acceptance of the order.
