Which of the following may be a benefit for purchaser in using call off contract?

Which of the following may be a benefit for purchaser in using call off contract?
A . Ability to discover new potential suppliers
B. No long-term commitment required
C. Secured supply
D. Maintaining a degree of competition between suppliers

View Answer

Answer: C

Explanation:

Benefits for the purchaser in using call off contract are as below:

– The benefit of a call off contract is that they allow the supply of materials, goods and services to be secured over multiple delivery dates across the length of a project.

– Agreed prices, either fixed or pre-agreed mechanism for adjustment. This helps with setting and controlling budgets.

– Simple order mechanisms at the point of need

– Schedules of rates pricing enables electronic procure-to-pay systems, which gives greater control and visibility of spend

– The value of spend ad length of contract justify the cost of proper market engagement and tender or negotiation processes resulting in better value for money

– The longer the contract, the greater the opportunities for aligning working practices to create joint efficiency.

Reference:

– Call Off Contracts C What are they and how are they used?

– CIPS study guide page 63-64

LO 1, AC 1.3