- Project plans
- Project activities
- Legislation and standards
- Industry context
Last edited 14 Feb 2018
A call-off contract, also known as a blanket order, is a purchase order which enables bulk orders over a period of time. This is a form of framework agreement that is often used in construction where projects can last for months or even years.
The benefit of using a call-off contract is that it allows the supply of materials to be secured over multiple delivery dates, meaning that a customer does not have to hold excess stock (e.g. all the bricks required to build a housing development) on site; instead they can ‘call off’ stock as and when it is required.
This also reduces the amount of administration required to process multiple purchase orders. Instead, sales orders and invoice items are raised as they are needed until the point at which the contract is fulfilled, the end of the order period is reached, or the maximum order value (which has is pre-determined) is reached.
Another significant benefit is that call-off contracts are often negotiated with pre-determined pricing, which can offer discounts for bulk ordering. This is beneficial for suppliers who are guaranteed ongoing business over a period of time and can help them manage cash flows and orders.
Careful management of call-off contracts is essential, with appropriate controls in place. The customer should have confidence that the agreed pricing is maintained and the schedules for call-off are met; while the supplier should have firm control over their commitments, and make sure they do not over- or under-supply.
 Related articles on Designing Buildings Wiki
Featured articles and news
Book review: The vertebrate architecture of one of the most important practices of the 20th century.
Matt Rhodes, Quiss Technology, explains how an increasing number are falling victim to sophisticated cyber-attacks.
Assembly drawings represent items that consist of more than one component and show how they fit together.
Is the water sector under too much pressure from the regulator?
Everything you need to know about acoustics in under 800 words.
Check out our list of the 90 most unusual buildings of all time.
The government is to set a personal consumption target to reduce water use.
BSRIA calls for more education to promote fuels that are fit to burn.
Michael Gove admits air pollution is making people ill and shortening lives.
BRE call for a clearer, focused drive for the delivery of sustainable, quality developments.
Proposals for a 140m high observation wheel next to the Tyne.