Steel purchase-order review checklist

A steel PO should be reviewed as a contract package, not simply checked for price and quantity.

By the time a purchase order arrives, several documents may already exist:

• enquiry/RFQ;
• project specification;
• MTO;
• supplier quotation;
• technical deviation list;
• clarification emails;
• negotiated commercial terms;
• final PO and attachments.

The main review task is to confirm that the PO reflects the agreed deal and has not introduced new or conflicting requirements.

1. Establish the document hierarchy

Before reviewing individual clauses, identify:

• PO number/revision;
• referenced RFQ;
• referenced offer/revision;
• MTO/requisition revision;
• project specifications/revisions;
• drawings;
• approved deviation/clarification list.

Then check whether the PO states an order of precedence.

Without this, a conflict between the MTO, specification and offer can become a dispute later.

2. Review every material line

For each line compare:

• product form;
• dimensions;
• grade;
• standard;
• edition if specified;
• delivery condition;
• ordered length;
• quantity;
• unit;
• unit price;
• total price.

Do not assume that a commercial description copied into the PO is technically complete.

A mismatch such as S355J2H vs S355J2, or EN 10210 vs EN 10219, can be commercially serious even when the dimensions are identical.

3. Check supplementary technical requirements

Create a separate checklist for requirements above the base grade.

Examples:

• Charpy temperature/energy;
• CEV/Pcm;
• Z-quality;
• UT class;
• hardness;
• CTOD;
• grain size;
• strain ageing;
• NACE/ISO 15156;
• PMI;
• class approval;
• special tolerances;
• surface condition;
• welding/manufacturing restrictions.

Confirm that the price and delivery offered actually included them.

4. Check certificate and document requirements

Confirm:

• EN 10204 type;
• whether 3.2 is actually required;
• named/approved TPI if any;
• MTC language/copies;
• certificate submission timing;
• manufacturer approvals;
• origin documents;
• packing list;
• certificate of conformity;
• test reports;
• ITP/QCP;
• MPS/manufacturing procedure where required.

A PO can be technically correct but commercially impossible if it demands documents that were not included in the quotation.

5. Review inspection points

If inspection is required, establish:

• which tests are hold points;
• which are witness points;
• notification period;
• inspector approval;
• inspection location;
• who pays inspector costs;
• re-inspection cost allocation;
• release-note requirement;
• whether shipment can proceed before document approval.

See Hold, witness and review points in third-party inspection.

6. Marking and traceability

Check exactly what must appear on:

• each piece;
• each bundle;
• tags;
• packing;
• shipping marks;
• documents.

If material will be cut by a stockholder, make sure the PO defines how identification is transferred and documented.

See Traceability when stockholders cut material from master lengths or plates.

7. Delivery terms and schedule

Check:

• Incoterm;
• named place/port;
• Incoterms edition;
• required delivery date;
• whether date means EXW, FOB, arrival or site delivery;
• partial shipments;
• transshipment restrictions;
• packing;
• container/breakbulk assumptions;
• documentation cutoff;
• notice requirements.

CPT Antwerp and FOB Antwerp are not small wording variations; they allocate transport obligations, costs and risk differently.

8. Payment terms

Review:

• advance payment;
• milestone payments;
• balance trigger;
• LC requirements;
• payment days;
• required bank documents;
• retention;
• set-off clauses;
• currency;
• bank charges;
• tax/VAT wording.

Payment triggers should match documents the supplier can realistically provide.

9. Warranty and guarantee clauses

Steel supply POs may include broad warranty language originally written for equipment packages.

Check:

• warranty period;
• start date;
• scope;
• replacement obligation;
• consequential-cost exposure;
• guarantee/bond requirements;
• defect notification;
• remedy procedure.

Escalate unusual legal wording rather than accepting it as a routine material clause.

10. Liquidated damages and delay

Confirm:

• LD rate;
• cap;
• what event starts LDs;
• grace period;
• whether partial delivery reduces exposure;
• excluded delays;
• force majeure;
• buyer-caused/document-approval delays.

A technically easy order can become commercially unattractive if delay liability is disproportionate to the material value.

11. Cancellation and change orders

Check whether the buyer can:

• cancel after production starts;
• change quantities;
• change delivery dates;
• change technical requirements.

For mill orders, steel may become project-specific once a heat/rolling campaign is committed. Cancellation rights should reflect that reality.

12. Compare the PO with the final offer—not the first offer

This sounds obvious, but it is a common source of error.

If the quotation went through several revisions, compare the PO against the final accepted revision plus agreed clarifications.

Do not allow an earlier price, delivery time or technical assumption to re-enter the contract through copied text.

13. Create an exceptions list before acceptance

A clean review output can use four statuses:

• Compliant
• Clarification required
• Commercial exception
• Technical deviation

The exception list should be resolved in writing before unconditional PO acceptance.

A practical review order

For speed, review in this sequence:

1. Material lines and quantity
2. Technical specifications
3. Inspection/certification
4. Delivery
5. Commercial terms
6. Legal/liability clauses
7. Final document hierarchy

This catches the largest risks first.

Procurement takeaway

A PO review is not about finding as many comments as possible.

It is about confirming that what you are now contractually required to deliver is the same material, documentation, timing and commercial package that you intended to sell.

References and verification sources

• DIN EN 10204:2005-01 — Metallic products, types of inspection documents
• ICC — Incoterms 2020