# Standing offers, supplier lists and contracts: what's the difference?

> A contract commits the buyer to buy specific work from you. A standing offer or supplier list is a promise to sell at set terms if the buyer calls, with no promise that it will. Work comes through call-ups or mini-competitions among the firms on the list. Lists can bring steady work for years, but only if you're ready when the call comes.

By: CrewBid Team. Source page: https://crewbid.tech/articles/standing-offer-vs-contract

Public buyers buy a lot of work they can't predict: a burst pipe, a tree down, a lock that fails, a small renovation. They can't tender each one, so they set up lists of approved suppliers in advance. Knowing how those lists differ from a contract helps you decide where to spend bid time.

## How do they compare?

| | Contract | Standing offer | Prequalified or supplier list |
|---|---|---|---|
| Does the buyer have to buy? | Yes, the work in the contract | No, only when it calls up | No |
| Price | Set in the contract | Set in the offer, for the term | Often set later, per job |
| How work arrives | It's yours from the start | Call-ups at the offered terms | Invited quotes or mini-competitions among listed firms |
| Typical term | One job, or one to five years | One to three years, sometimes longer | One to three years |

Federal buyers also use **supply arrangements**, which qualify suppliers for a category and then run smaller competitions among them. Provincial and local buyers use many names: roster, prequalified list, approved vendor list, standing offer.

_How work flows through a standing offer or supplier list: The buyer asks for standing offers, qualifies firms onto a list for the term, then, when a need comes up, calls up one firm or runs a mini-competition among the listed firms and sends a work order._

## What is a call-up?

A **call-up** is an order placed against a standing offer. The buyer picks a firm on the list, by rotation, by location, by lowest rate or by best fit, and sends a work order at the agreed terms. Each call-up is a small contract. If you can't take it, the buyer moves to the next firm, and may remember it.

## Is getting on a list worth it?

Usually, if:

- **The buyer is near you**, so call-outs are quick and cheap to reach.
- **The work fits your crew**, without hiring for it.
- **You can respond fast**, especially for urgent work.
- **The terms hold up** for the whole term, including your rates in the last year.

Be careful when a list has many firms and little work. Ask the buyer how many firms are on the list, how work is shared, and how much was spent through it last term. Those are fair questions, and the answers show whether the list is worth the paperwork.

> [!warning]
> Rates on a standing offer are a promise. If costs rise and the offer has no adjustment clause, you may be stuck with old rates until the term ends. Read the price adjustment terms before you sign.

## How do I get on one?

Watch for requests for standing offers or supplier qualifications in your trade, and answer every requirement clearly. Between requests, ask purchasing staff when the list will reopen, and whether they accept applications at any time. Some do.

## How do I stay on it?

Answer the phone, show up on time, and send tidy invoices with clear records. Buyers track performance on lists, and many drop firms that decline call-ups or slip on response times.

## Where to go next

Read [standing offers and prequalified lists](https://crewbid.tech/guides/standing-offers-prequalified-lists) for the how-to, and [RFQ, RFP, ITT, RFSQ and RFI compared](https://crewbid.tech/articles/rfq-rfp-itt-compared) for the other solicitation types.

## Sources

- [How the government buys (Government of Canada)](https://www.canada.ca/en/public-services-procurement/services/acquisitions/support-for-businesses/understand-procurement-process/how-government-buys.html)