GlossaryKind of term: Cost and economicsQuote validity period
What is the validity period of a quote?
The validity period is the time within which the customer can accept your quote at the stated price and conditions, given as a number of days or a date.
A period in days runs from the quote date. Validity concerns the offer, not the lead time: a lead time is often given subject to workload at the time of the order, and the quote should then say so.
What does the quote validity period depend on?
What a validity period binds you to depends on the governing law and the wording. Under Dutch law an offer with a term for acceptance is in principle irrevocable within that term (Article 6:219 of the Dutch Civil Code), unless it was made without obligation. Under English law an offer can be withdrawn before acceptance, even within a stated period, unless something was given in return for keeping it open. For cross-border sales of goods the UN Convention on Contracts for the International Sale of Goods (CISG) may apply unless the contract excludes it, with its own rule. How long you can reasonably hold a price depends on how fast the underlying costs move: material, outsourcing and machine load.
How does the quote validity period work in practice?
A price rests on costs at one point in time: the purchase price of the material, the subcontractor's price, the load on your machines. The longer the quote stands, the more of that can move while you are held to the price. With material carrying an alloy surcharge or an exchange-linked base price, such as stainless steel, aluminium and brass, that can show within weeks. To give a long validity anyway, tie the material line to a price date or include a price adjustment clause. A quote made without obligation gives you room but gives the customer less certainty.
What is the quote validity period often confused with?
Validity and lead time both appear on the quote, but validity says until when the customer can order, lead time how long you need after the order. It is related to the price date, but that is the moment a price applied, validity the period in which you offer that price.
How do you see the quote validity period in Blake?
In Blake your own purchase prices in the material catalogue carry their source and history. When an order arrives late, you can find the quote version the customer received, as a PDF and as a CSV or JSON export. More on materials.
Frequently asked questions
How long should a quote be valid when material prices are volatile?
As long as you can hold the material price. If that is uncertain, keep the validity short, state the price date of the material, or agree a price adjustment clause that lets the material line move.
Can I withdraw a quote before it expires?
It depends on the governing law. Under Dutch law an offer with a term for acceptance is in principle irrevocable within that term unless made without obligation; under English law it can usually be withdrawn until accepted. Your contract or terms usually name the law.
What happens when a customer orders after the quote has expired?
The offer has lapsed and you are no longer bound by the price. Under Dutch law you can still treat the late acceptance as valid by saying so without delay, or you recalculate first.