Frameworks

Question 1

What is a framework agreement?

Answer 1

• An umbrella agreement that a party enters into with one or more suppliers to establish governing terms.
• Usually sets a strategic partnering relationship for the procurement of goods, works or services.

Question 2

How long can a framework be?

Answer 2

• Framework agreements typically lasts for 4 years but can range from 2 - 10 years.

Question 3

What are the key advantages of framework agreements?

Answer 3

• Help to develop stronger relationships between the parties involved and encourage long term collaboration.
• Can save time and resources in procurement process.
• Repeat work and continuity can deliver efficiencies.
• Rates and prices are usually agreed upfront.

Question 4

What are the key disadvantages of framework agreement?

Answer 4

• The suppliers can become complacent.
• Suppliers can invest time and money to get into frameworks and potentially not receive any work through them.
• May be restrictive to new suppliers who offer innovative, new solutions with the changing and evolving nature of technologies for example.

Question 5

Why might an employer choose a framework agreement to procure goods and services?

Answer 5

• Employers that are continuously commissioning construction work might want to reduce procurement timescales.
• Allows the employer to invite tenders from suppliers on a call of basis as and when required.
• Suppliers are already vetted.

Question 6

What’s the different between a framework and a contract?

Answer 6

• Framework agreements don’t typically provide a specific commitment in terms of project and value of works.
• A contract is usually a specific fee with project scope and specific timelines.