Framework agreement creation and maintenance

Framework agreements are agreements between companies and contractors which set out terms and conditions (usually including price, quality and quantity) under which individual contracts (call offs) can be made throughout the duration of the agreement.

Framework agreements are beneficial to the company as significant time and cost savings can be made by limiting the tender and negotiation phases of contract award to a one off process rather than each time the requirement arises. Leveraging buying power through economy of scale also provides the opportunity for cost savings. The reduction in time between identifying a requirement and filling the requirement is also reduced using framework agreements which also provides the opportunity for both time and cost savings.

Because a parent-child relationship exists between frameworks and its call off contracts, the aggregate expenditure and risk from all of a framework agreement's call offs can be accessed from the framework agreement, to help the framework agreement team to manage it more easily.