What Is a Call-Off Contract?

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A call-off contract specifies terms, conditions and prices with suppliers of goods and services. These umbrella contracts are long term from 3 to 5 years, and the contract is legally binding.

One example of this umbrella-type contract is ongoing repair work, such as that required at apartment complexes or office buildings. The purchase of office supplies or consumables is another example, as well as purchasing and replacing IT equipment. Public tendering with competitive bidding is not necessary with call-off contracts. A major benefit is contractual certainty; the client is assured a long-term commitment to its project and the suppliers secure long-term work.