An analogy may be drawn between the standing offer and a general offer that is made available to the whole population. On the other hand, it is only accessible for a certain period of time. Due to the fact that it is a continuing offer, individuals are still able to submit their applications within that period of time. Following the acceptance of the offer by the other party, a contract that is regarded to be open or standing is considered to have been completed. One of the clearest examples of a standing or open proposal is a tender, which is nothing more than an offer. The creation of the contract is contingent upon the acceptance of the contract and the communication of that acceptance.
Definition
One might think of a standing offer as a commitment to carry out a given action or to sell something at a certain price. It is rather similar to having a number of proposals prepared and ready to go, and when one of them is accepted, it transforms into a contract. To provide an example, a business may have a standing offer to sell a certain product for a particular price, and anybody who is interested in purchasing the goods can accept the offer and purchase the thing accordingly.
For example:
- If you make a standing offer, you agree to buy things whenever and wherever you want. A standing offer is not the same thing as a contract. Someone who wants to supply goods and services makes an offer that is called a “standing offer.” If you want to make a deal, you should agree on the prices and terms ahead of time.
- A business might offer to provide a certain service to a customer at a set price for a certain amount of time. The client has until the date given to accept the deal. If they do, a contract will be made.
Purpose of standing or open offer
Standing Offer Agreements are meant to make things more cost-effective and better for users by:
- Combining amounts and making needs the same
- Cutting down on the time it takes to get common goods or services.
- Lowering the overall costs of managing to get cheap goods and services that are needed often.
- Making sure that costs stay low and competitive.
Types of standing or open offer
There are two types of offers that are still valid:
Master standing offer: All government department are allowed to use it, and individual customer pays for it. Plans are being made for use,
- National: In a national way
- Regional: Within the buying agency’s area of regional supply
Individual standing offers: These can be used by any part of the company, and each customer pays for them themselves. Plans are being made for use,
- National: In a national way
- Regional: In the purchasing agency’s district supplied offices or regional supply centers.
- Departmental: Only the purchasing agency can issue a call-up because they may have to choose the way of supply because there may be more than one provider.
A few instances of a standing offer
- Standing offer for sale of office equipment: A company can make a seller a standing offer to get them any desks, chairs, computers, printers, and other goods they need for the office. The seller will already have a price, terms and conditions, and shipping times worked out with you.
- Stand-alone offer for food services: A college or school can make a stand-alone offer to a food services company to feed their students. Prices, terms and conditions, and arrival times will have already been worked out with the food service company.
- Offer in place for software: A company can make an offer in place with a software provider to provide them with software options. Prices, terms and conditions, and release times will have already been worked out with the program source.
- Stand-alone offer for professional services: A business can make a deal with a professional services provider to get services like financial, law, advising, or technology. The professional services provider will already have agreed on prices, terms and conditions, and when the work needs to be done.
Other methods related to standing offer
- Request for Proposal (RFP): When a company wants to find the best deal on goods or services from possible sellers, they use a process called “Request for Proposal” (RFP). According to the RFP, the group asks sellers to send in their best prices for the goods or services listed in the RFP.
- Request for Quotation (RFQ): An company asks possible sellers to give a quote for certain goods or services through the Request for Quotation (RFQ) process. The RFQ paper spells out the exact needs and factors that will be used to choose the best offer.
- Invitation to Tender (ITT): This is when a company asks possible sellers to send in their best bids for a certain project or deal. The ITT paper has information about the project, factors for judging offers, and selection criteria to find the best deal.
- Request for Information (RFI): An company asks possible sellers to give details about their goods or services through the Request for Information (RFI) process. The RFI paper spells out the exact needs and standards that will be used to choose the best offer.
Request for Proposal (RFP), Request for Quotation (RFQ), Invitation to Tender (ITT), and Request for Information (RFI) are some other methods that are similar to Standing Offer. Within each of these steps, the organization asks providers to send in their best prices for the goods or services listed in the appropriate paper.
