A procurement policy sets the rules for how an organisation buys goods and services — who can approve what, how many quotes are needed, when a purchase order is required and how suppliers are chosen. A clear policy drives value for money, transparency and compliance while reducing maverick spend. This free Word template gives you a complete, editable starting structure you can adapt to your own thresholds and approval hierarchy.
What a procurement policy should cover
A good procurement policy answers the practical questions every buyer faces: how much can I approve, how many quotes do I need, when must I raise a purchase order and which suppliers can I use. Setting these rules once, in writing, removes ambiguity and makes procurement consistent across departments.
- Approval authority — spend thresholds tied to roles.
- Sourcing rules — when single quotes, multiple quotes or tenders apply.
- Purchase order and payment controls.
- Supplier onboarding, ethics and conflict-of-interest standards.
- Record-keeping, compliance and review cadence.
How to use this procurement policy template
The template uses bracketed placeholders such as [Company] and editable spend thresholds. Replace the placeholders with your organisation's details, adjust the approval limits and sourcing bands to match your risk appetite, and circulate the draft for review before adoption. Because it is a Word document, you can add your logo, restructure clauses and align the language with your existing governance documents.
Keeping the policy effective
A policy only works if people follow it. Keep thresholds realistic so staff are not tempted to split orders to stay under a limit. Pair the policy with the RFQ and purchase order templates so the process is easy to follow, and review it at least annually to reflect changes in the business and regulation.
Download the Procurement Policy Template
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Common questions
What is a procurement policy template?
A procurement policy template is an editable document that sets out how an organisation buys goods and services — including approval limits, sourcing and quotation rules, purchase order controls and ethics standards.
What format is the procurement policy template in?
It is a Microsoft Word (.docx) document with placeholders and editable thresholds, so you can adapt every section to your organisation.
Is this procurement policy template free?
Yes. Enter your work email above and the editable Word document downloads automatically at no cost.
Is this template legal advice?
No. It is a general starting template. Review and adapt it to your organisation's needs and, where appropriate, seek professional or legal advice before adoption.
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