Subcontractor Log Information

Hi

We are using EnterpriseOne 9.0, tools release 9.2.0.7.

From reading the documentation 'Order Log Revisions (DOC ID 639601.1) my understanding is that:

1. A Purchase Order (PO) can be raised with the vendor regardless of whether their insurances are update to date.   This means work can commence and be completed before the submittal information is received from the vendor.   It is only on payment for work completed/milestones etc that the functionality of checking for correct paperwork (log) comes into effect.  Isn't this a bit late?   Would it be more logical to not allow a purchase order to be raised or at least not approved until the relevant submittal information is received from vendor?   Or have a misunderstood how the log information functionality works?