Framework (agreement)

Updated

A contract between a buyer and one or more suppliers setting the rules for awarding future call-off contracts, which in most cases does not commit the buyer to award any.

A framework is a contract between a buyer and one or more suppliers that sets out how future contracts will be awarded. Section 45(2) of the Procurement Act 2023 defines it as a contract between a contracting authority and one or more suppliers that provides for the future award of contracts to the supplier or suppliers. The term “framework agreement” is the older, everyday name.

Where it appears in the Act. Section 45 says a framework can generally award future contracts only after a competitive selection process, with exceptions such as a framework with a single supplier, or one that sets the core terms and an objective way to choose a supplier. It must list the buyers entitled to use it, and cannot allow an award to an excluded supplier. Section 46 covers the competitive selection process itself.

gov.uk’s guidance says the default maximum term is four years for most frameworks (longer for defence and security and utilities, with exceptions) and that most frameworks do not commit the buyer to award any contract. See call-off contract.

What it means for a small supplier. Getting onto a framework is a tender in itself, and the work comes afterwards, only if you win call-offs. The upside is that the buyers have already agreed the terms, so each call-off is quicker to bid for. Check the end date, which buyers can use it, and whether it is divided into lots. Some are open frameworks that reopen to new suppliers.

Next: frameworks and dynamic markets.

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