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In this video, Theo from buildersdocuments.com explains how to use a purchase order template, a simple spreadsheet for entering contractor and supplier information to issue purchase orders for projects. He reflects on his own experience, noting that initially, he didn't see the value in issuing purchase orders, believing that an email or verbal confirmation sufficed. However, he acknowledges the importance of having a formal purchase order as a reference document that clearly states the specifics of the contract price, benefiting both the contractor and the builder or supplier. This helps ensure clarity and accountability in project management.