Blanket and Release Purchase Orders
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Hamilton, Ontario L8R 2K1
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New Public Works Process for Vendors
The City of Hamilton is implementing a new Asset Management System to improve coordination and oversight related to City assets, parts inventory, and contracted services.
The new Asset Management System is being implemented first within Public Works divisions, and aligns with the City’s existing finance and procurement processes.
The implementation is occurring in phases.Vendors working with a division where the Asset Management System has already been implemented, may notice:
- Purchase Orders with specific parts or services line items will still be issued by Procurement and there will be no change to them.
- Blanket Purchase Orders will now be issued by Procurement.
- These are agreements to purchase future goods or services over a defined time period up to a maximum authorized dollar value.
- They include the legal terms and conditions for future Release Purchase Orders.
- They establish purchasing authorization only and do not constitute a commitment to purchase a minimum quantity, volume, or dollar amount.
- The maximum authorized dollar value is denoted by a line item called Blanket Order.
- Work should not be commenced or parts sent until a valid Release Purchase Order is received.
- A Release Purchase Order will be sent by a divisional contact (not your procurement contact), when assets, parts, or services are required.
- Release Purchase Orders replace the work orders you previously received.
- Multiple Release Purchase Orders may be issued until the Blanket Purchase Order’s maximum authorized value or expiry date is reached.
- Release Purchase Orders reference the Blanket Purchase Order, specify the amount being purchased, and apply against the remaining authorized value of the Blanket Purchase Order.
Release Purchase Orders, will reference a PO# in the top left corner as shown circled below in the format: NSXXXXXXXX-EAM-XXXXX. This number needs to be referenced on your invoices in order for payment to be completed.
Frequently Asked Questions
Public Works is implementing an Asset Management System to improve coordination and oversight related to City assets, parts inventory, and contracted services.
The selected system supports improved process alignment between asset management, and specific financial and procurement functions, and strengthens consistency in purchasing and financial controls
Blanket Purchase Orders and Release Purchase Orders
Procurement will now be issuing Blanket Purchase Orders for purchase of future goods or services over a defined time period up to a maximum authorized dollar value. They include the legal terms and conditions for future Release Purchase Orders.
Blanket Purchase Orders establish purchasing authorization only and do not constitute a commitment to purchase a minimum quantity, volume, or dollar amount. They will have a line item called “Blanket Order: denoting the maximum authorized dollar value. Work should not be commenced or parts sent until a valid Release Purchase Order is received.
When assets, parts, or services are required by the City, you will receive a Release Purchase Order referencing the Blanket Purchase Order. These Release Purchase Orders specify the amount being purchased and are to be applied against the remaining authorized value of the Blanket Purchase Order. Release Purchase Orders reference a PO# in the top left corner that needs to be referenced on your invoices in order for payment to be completed. The number is in the format NSXXXXXXXX-EAM-XXXXX.
- Purchase Orders with specific parts or services line items will still be issued by Procurement and there will be no change to them.
- There are no changes to invoice submission procedures.
- These system updates do not change contract pricing, invoice requirements, or payment terms