Framework Agreements provide a mechanism for a purchaser to obtain works, goods or services from suppliers under pre-agreement terms.
The purchaser and suppliers will usually sign up to an overreaching “framework” agreement which sets out all of the agreed terms under which the purchaser can issue “call-offs” for the works, goods or services required.
Framework Agreements are particularly useful for repeat orders of similar goods or services. The key benefits are:
- It avoids repeated procurement exercises
- Pre-agreed processes and standard terms make it easier and quicker for the purchaser to obtain the required supplies
- Both purchaser and suppliers can benefit from consistency and economies of scale
Framework Agreements can be used in both the private and public sectors, though certain public bodies are required by law to procure goods and services over set financial thresholds under the Public Contracts Regulations.
