What is a Framework agreement?

A Framework agreement, is an agreement with suppliers to establish terms governing contracts that may be awarded during the life of the agreement. In other words, it is a general term for agreements that set out terms and conditions for making specific purchases (call-offs). Note that a framework covers the provision of a generic group of goods, works or services (or a combination).

The framework agreement itself may be a contract, but only if the agreement places an obligation to purchase. In this case, it is treated like any other contract, and the EU procurement rules apply. However a framework agreement is more likely to not be a contract itself, but merely an agreement about the terms and conditions that would apply to any order placed during its life. In this case, a contract is made only when the order is placed and each order is a separate contract. Despite this kind of agreement not technically being a ‘contract’, you still need to follow the EU procurement rules.

A procurement framework is an agreement put in place with a provider or range of providers that enables buyers to place orders for services without running lengthy full tendering exercises. Frameworks are based on large volume buying. Aggregating different buyer’s potential needs means individual buyers can source services at lower prices, or with special added benefits and/or more advantageous conditions.

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