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In this tutorial, Theo from BuildersDocuments.com explains how to use a purchase order template, a simple spreadsheet designed to capture details about contractors and suppliers for project purchases. He reflects on his early experiences, noting that he initially viewed purchase orders as unnecessary, believing verbal agreements sufficed. However, he emphasizes the importance of issuing formal purchase orders as they serve as a single reference document for both contractors and builders or suppliers, outlining the specifics of contract prices. This ensures clarity and organization in project management.