calloffs

A call-off is a procurement instrument used under a framework agreement or master contract, by which a buyer instructs the supplier to supply specific goods or services from the terms already agreed in the overarching contract. Call-offs enable transactions to be conducted without negotiating a new contract for each delivery, while preserving the pricing, performance standards, and other terms established in the master arrangement.

A call-off typically includes details such as the item or service description, requested quantity, delivery date and location, applicable price or rate, and any required service levels or performance metrics. The call-off is binding under the framework terms; the supplier confirms availability, schedules production or fulfillment, and performs the delivery or service once accepted. If cancellation or changes are needed, they are governed by the master contract's change provisions.

In practice, call-offs are common in public sector procurement, manufacturing supply chains, and large organizations that use blanket or framework agreements to standardize sourcing. They differ from a standalone purchase order in that they draw on a pre-approved contract and its terms, whereas a PO is typically issued to authorize a single transaction outside such an arrangement.

Benefits include faster procurement, consistent pricing, simplified administration, and better supplier relationships; risks include misalignment with demand, lead-time challenges, and reliance on the master contract terms. Effective management relies on accurate demand planning, clear communication, and disciplined contract governance.

See also: framework agreement, master contract, purchase order, blanket order.