Oregon Construction Contractors (CCB) Practice Test

What is a significant function of a purchase order system in construction?

1. Allow major project delays

2. Facilitate the review of purchase orders with clients

3. Make change orders at the last possible moment

4. Reduce material costs

The correct answer is: Facilitate the review of purchase orders with clients

A purchase order system in construction plays a crucial role in maintaining clear communication and accountability between parties involved in a project. One significant function of this system is to facilitate the review of purchase orders with clients. This process ensures that all materials, services, and costs are agreed upon before procurement begins. It minimizes the risk of misunderstandings about supply needs and budgeting by keeping all stakeholders informed about what has been ordered and at what cost. In the context of construction, where projects can be complex and involve multiple vendors and subcontractors, an effective purchase order system assists with tracking orders and ensuring that they align with the contractual agreements made with clients. It allows for an organized method of managing and documenting transactions, which aids in dispute resolution if disagreements arise regarding materials or services provided. While it is important to minimize delays and manage costs, the primary focus of a purchase order system is to enhance communication and formalize agreements, which ultimately leads to smoother project execution.