Framework agreement Definition

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What does Framework agreement mean?

An agreement put in place between two parties which sets out the basic agreed rules by which the parties will work together on numerous projects.

This form of agreement is frequently used to set out the broad framework within which a consultant or contractor will be employed on any number of projects and tasks for one employer. Such an agreement is frequently put in place when a consultant is to be used on a number of projects. Matters such as hourly rate and price will frequently be set out and controlled by a framework agreement with project specific variables dealt with on a matter by matter basis in the contract documents which sit behind the framework.

View the related checklists about Framework agreement

Equipment hire agreement—checklist

Equipment hire agreement—checklist Scope and purpose This Checklist sets out the key considerations when drafting, reviewing or negotiating an equipment hire agreement. Equipment hire agreements may also be referred to as equipment leases, equipment rental, operating leases or finance leases. This Checklist uses the term equipment hire agreement for ease of reference. It is drafted from the perspective of the hiring customer under the lease. See also accompanying Precedents: Equipment hire agreement—pro-customer and Equipment hire agreement—pro-supplier. This Checklist seeks to present issues that are aimed to protect the hiring customer’s (or lessee) interests in relation to an equipment hire agreement which has been drawn up by the supplier (or lessor) (as is usually the case with equipment hire agreements). Terms such as ‘lessor’, ‘lessee’, ‘hirer’ and similar do seem to cause a lot of confusion within these types of arrangement. In this Checklist the ‘hiring customer’ or ‘lessee’ is the party who is taking the equipment on lease and the ‘supplier’ or ‘lessor’ is the party who supplies the equipment...

Checklist for Notice of Intention to make an award to or conclude a framework agreement with the Chosen Provider under the Competitive Process

Checklist for Notice of Intention to make an award to or conclude a framework agreement with the Chosen Provider under the Competitive Process This Checklist sets out the information required to be included in a notice of intention of intention to make an award to or conclude a framework agreement with the Chosen Provider under the Competitive Process to be sent to the UK e-procurement’s service to comply the transparency requirements mandated by the Health Care Services (Provider Selection Regime) Regulations 2023 (PSR Regs 2023), SI 2023/1348, reg 11(10), Sch 10. Information to be included Further reading Statement that the relevant authority (RA) is intending to award a contract to a provider or conclude a framework agreement under the Competitive Process See Practice Note: Health care procurement—procurement process—Competitive process. Contract title and reference The name and address of the registered office or principal place of business of the provider to whom a contract is to be awarded or with whom a framework agreement is to be concluded ...

Introduction to framework agreements for construction lawyers

What is a framework agreement?A framework agreement is an umbrella agreement which a party enters into with one or more suppliers (who may be contractors, sub-contractors, suppliers or consultants) to establish the terms governing a long term relationship during which one or more contracts may be awarded by the employer to the supplier(s).In construction, framework agreements are commonly entered into between employers and a number of contractors, suppliers or consultants and sometimes between contractors and a number of sub-contractors, suppliers or consultants. Notwithstanding these various relationships that may be subject to a framework agreement, for ease, this Practice Note refers to the ‘employer’ and the ‘supplier’.Framework agreements are used in the private sector but are more widely used in the public sector, both by government departments and bodies and by local authorities. Though a framework agreement, in most cases, is not considered to be a contract itself, the procurement by a contracting authority to establish a framework agreement is subject to public procurement rules.How does a framework agreement work?A framework...

Framework agreements in construction—standard forms

What standard form framework agreements are published?There are several published standard form construction framework agreements:•the JCT Framework Agreement (JCT FA)•the ACA Framework Alliance Contract (ACA FAC-1)•the NEC3/NEC4 Framework Contract (NEC FC)JCT FAThe JCT FA was first published in 2005 as a non-binding version. It was aimed primarily at the private sector. Following criticism that it could not be used by the public sector (who are major users of framework agreements), it was revised in 2007. It was revised again in 2011 to make it compliant with the revised Housing Grants, Construction and Regeneration Act 1996 (HGCRA 1996), and the most recent version was published in 2017 (but labelled the 2016 edition as it forms part of the 2016 JCT suite).The JCT Guidance note states that JCT FA is intended for the procurement of works over a period of time. Contracts called-off under JCT FA are intended to be governed by the form of JCT contract that is appropriate for the works being called-off.ACA FAC-1The ACA FAC-1 was published in 2016...

Discover our 150 Practice Notes on Framework agreement

JCT Management Works Contract 2016—Form of Agreement and Amendments

JCT Management Works Contract 2016—Form of Agreement and Amendments Agreement in relation to [insert brief details of the works/project] at [insert address of works] (incorporating (inter alia) the JCT Management Works Contract Agreement 2016 (MCWC/A 2016) and JCT Management Works Contract Conditions 2016 (MCWC/C 2016) as modified and supplemented in the manner indicated in this Agreement and the Schedules hereto). This Agreement is made on the [insert number] day of [insert month] 20[insert year]. Parties 1 [insert name of the Management Contractor] (company registration number [insert number]) whose registered office is situated at [insert address of the Management Contractor] (‘the Management Contractor’); 2 [insert name of the Works Contractor] (company registration number [insert number]) whose registered office is situated at [insert address of the Works Contractor] (‘the Works Contractor’). Now it is agreed that: 1 Interpretation In this Agreement words and expressions shall have the meanings that are respectively assigned to them in the JCT MCWC/A 2016 and the JCT MCWC/C 2016, referred to in and...

JCT Intermediate Sub-Contract 2024—Form of Agreement and Amendments

JCT Intermediate Sub-Contract 2024—Form of Agreement and Amendments Agreement in relation to [insert brief details of the works/project] at [insert address of works] (incorporating (inter alia) the JCT Intermediate Sub-Contract Agreement 2024 (ICSub/A 2024) and JCT Intermediate Sub-Contract Conditions 2024 (ICSub/C 2024) as modified and supplemented in the manner indicated in this Agreement and the Schedules hereto). This Agreement is made on the [insert number] day of [insert month] 20[insert year]. Parties 1 [insert name of the Contractor] (company registration number [insert number]) whose registered office is situated at [insert address of the Contractor] (‘the Contractor’); 2 [insert name of the Sub-Contractor] (company registration number [insert number]) whose registered office is situated at [insert address of the Sub-Contractor] (‘the Sub-Contractor’). Now it is agreed that: 1 Interpretation In this Agreement words and expressions shall have the meanings that are respectively assigned to them in the JCT ICSub/A 2024 and the JCT ICSub/C 2024, referred to in and modified and supplemented in Schedule 1 and/or Schedule...

Dive into our 26 Precedents related to Framework agreement

Can call-off agreement under a framework agreement be awarded on different terms to those set out in the original framework? If a tenderer marks-up the call-off terms at mini-competition stage, could the contract be awarded and entered into based on the mark-up?

Can call-off agreement under a framework agreement be awarded on different terms to those set out in the original framework? If a tenderer marks-up the call-off terms at mini-competition stage, could the contract be awarded and entered into based on the mark-up? Framework agreements can be set up in a variety of ways under the Public Contracts Regulations 2015, SI 2015/102 (PCR 2015, SI 2015/102). However, PCR 2015, SI 2015/102, reg 33(6) states: ‘Contracts based on a framework agreement may under no circumstances entail substantial modifications to the terms laid down in that framework agreement’ The latitude afforded to the contracting authorities will be set out in the relevant framework agreement itself. Some will allow mini-competitions and variations of certain terms in certain circumstances, some will not. Individual assessment and advice on each framework agreement should be considered. It is possible for a framework agreement to be set up in such a way that there is flexibility in relation to both the way a mini-competition can...

Are there any restrictions on the amount a contracting authority's may invoice (a management fee/charge) a supplier appointed to a framework for managing that framework?

Are there any restrictions on the amount a contracting authority's may invoice (a management fee/charge) a supplier appointed to a framework for managing that framework? Public Contracts Regulations 2015 (PCR 2015), SI 2015/102, reg 33(2) defines a framework agreement as: ‘an agreement between one or more contracting authorities and one or more economic operators, the purpose of which is to establish the terms governing contracts to be awarded during a given period, in particular with regard to price and, where appropriate, the quantity envisaged.’ The Crown Commercial Service (CCS) guidance on framework agreements provides the following interpretation: ‘a framework agreement is a general phrase for agreements with providers that set out terms and conditions under which agreements for specific purchases (known as call-off contracts) can be made throughout the term of the agreement. In most cases a framework agreement will not itself commit either party to purchase or supply, but the procurement to establish a framework agreement is subject to the EU procurement rules.’ Further guidance on the use...

See the 32 Q&As about Framework agreement

IAC publishes 1st report of session 2024-25 scrutinising international treaties

The International Agreements Committee (IAC) has published a report scrutinising post-Brexit agreements. This report is prepared under the IAC’s Terms of Reference, which include a provision 'to consider matters relating to the negotiation and conclusion of international agreements'. The IAC is responsible for scrutinising all international agreements laid before parliament under section 20 of the Constitutional Reform and Governance Act 2010. This includes international arrangements the UK is putting in place while working on shaping its independent trade policy. In the latest report, the UK bilateral agreement with Ukraine is considered.

Dispute Resolution weekly highlights—10 October 2024

This week's edition of Dispute Resolution weekly highlights includes analysis of a number of key DR developments and key judicial decisions including the Court of Appeal decision in Viegas v Estate of Jose Luis Cutrale (limitation); dates for your diary; details of our most recently published content; and other information of general interest to dispute resolution practitioners.

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