# Work Order vs Purchase Order

> A work order is the contract issued to a contractor for labour or services, unlike a purchase order for materials. See how SuperWise links it to RA bills.

Canonical: https://superwise.site/glossary/work-order/
Last updated: 2026-11-01

The contract a client issues to a contractor for labour or services, fixing the scope, rates, retention and deadlines.

## What is Work Order (WO)?

A Work Order (WO) is the contractual document issued to a contractor or subcontractor for labour or services, such as hiring a plumbing contractor to lay pipes. A Purchase Order (PO), by contrast, buys physical materials like cement. The work order defines the scope of work, the agreed itemised unit rates, the safety terms, the retention percentage and the deadlines.

## Practical example

After floating a [tender](https://superwise.site/glossary/tender-tendering/) for electrical works, the developer picks Bright Sparks Ltd. and issues a Work Order worth ₹2,00,00,000. It says Bright Sparks is paid ₹500 for every light point installed (a unit rate). It also says that 5% of each monthly [RA bill](https://superwise.site/glossary/running-account-bill/) is withheld as retention money until the [Defect Liability Period](https://superwise.site/glossary/defect-liability-period/) is over.

## In SuperWise

In SuperWise a work order is created from an awarded proposal or entered directly. Each line ties a [BOQ](https://superwise.site/glossary/bill-of-quantities/) item to a contracted quantity and rate, and the order carries the retention percentage, the [mobilisation advance](https://superwise.site/glossary/advance-payment/) and the default tax for its RA bills. RA bills can be raised once it is approved, and the cumulative billed quantity of a line cannot pass its contracted quantity.

[RA bill software](https://superwise.site/features/ra-bill-certification/)

## Related terms

- [Running Account bill (RA bill)](https://superwise.site/glossary/running-account-bill/)
- [Defect Liability Period (DLP)](https://superwise.site/glossary/defect-liability-period/)
- [Tender (Tendering Process)](https://superwise.site/glossary/tender-tendering/)
- [Advance Payment](https://superwise.site/glossary/advance-payment/)

## Related
- [Running Account bill (RA bill)](https://superwise.site/glossary/running-account-bill/)
- [Defect Liability Period (DLP)](https://superwise.site/glossary/defect-liability-period/)
- [Tender (Tendering Process)](https://superwise.site/glossary/tender-tendering/)
- [Advance Payment](https://superwise.site/glossary/advance-payment/)
- [RA bill software](https://superwise.site/features/ra-bill-certification/)