An LPO is a contract, even when it is one page. When a delivery is short, late or wrong, the argument is settled by what the order said — and most orders say far too little to settle anything.
Describe the goods so only one thing can arrive
"Cement — 200 bags" is not a specification. Which cement, to which standard, what strength class, what bag size, from which manufacturer if that matters? Vague descriptions get filled in by the supplier, in their favour, and the argument happens on site with a truck waiting.
For anything with a standard, quote the standard. For anything where a substitute would be unacceptable, say so explicitly: no substitutions without written approval. Suppliers substitute in good faith all the time; the order is where you decide whether that is allowed.
State where, when and to whom
- The delivery address, in enough detail that a driver who has never been there can find it
- The required delivery date, and whether it is a date or a window
- Site access constraints — vehicle size limits, hours when deliveries are accepted
- Who is authorised to receive and sign
That last point prevents the most common and most awkward dispute: material signed for by whoever happened to be near the gate, with no note of what actually arrived.
Say what happens on a part-delivery
Part-deliveries are normal. Whether they are acceptable, and how they are paid, should not be improvised. State whether partial delivery is permitted, whether it is invoiced in parts, and by when the balance must arrive.
Put the price beyond argument
Unit price, quantity, total, and — the ones most often left out — whether the price includes transport to site, offloading, and VAT. An order that is silent on delivery charges invites a separate invoice for them later.
If the price is held for a period, say so: prices firm for 30 days from order date. In a market where cement and steel move, an order without a price validity is an invitation to be re-quoted at delivery.
Set the quality and rejection terms
State that goods are subject to inspection on arrival, that the right to reject non-conforming material survives signature of the delivery note, and how long you have to raise a defect. Without this, a signed delivery note is treated as acceptance of everything, including what was buried in the middle of the load.
For materials with test certificates — steel, cement, admixtures — require the certificate to accompany delivery. Chasing certificates after the material is in the works is a losing exercise.
Match the paperwork three ways
Payment should follow a three-way match: the order, the delivery note and the invoice all agreeing. Where they do not, nothing is paid until they do.
This single discipline catches most overbilling — quantities invoiced above what was delivered, prices above what was ordered, and deliveries never made. It only works if delivery notes are collected and filed against the order rather than left in a cab or a pocket.
Number it, and keep the register
Every order gets a unique number, and every delivery note and invoice quotes it. A register showing what was ordered, what has arrived and what is outstanding takes minutes a day and answers the question that otherwise takes an afternoon: what is still coming?
Approval before issue, not after
Orders should be approved before they go out, against a threshold that matches the value. The failure mode here is familiar: goods ordered informally by phone, delivered, used, and then an order raised afterwards to make the invoice payable. Once that becomes routine, budget control is gone, because nobody knows the committed cost until the invoices land.
A workable minimum
- Unique order number and date
- Full description, standard and no-substitution clause
- Quantity, unit price, total, and what the price includes
- Price validity period
- Delivery address, date, access constraints, authorised receiver
- Part-delivery terms
- Inspection, rejection and certificate requirements
- Payment terms and the three-way match condition
- Approval signature appropriate to the value
Ten minutes at the order stage. It is the cheapest dispute resolution available.
