Framework Agreement Vs Framework Contract

When it comes to procurement and contracts, two terms that often get used interchangeably are framework agreement and framework contract. While the two concepts may seem similar, they actually refer to different things and understanding the differences between them is essential for anyone working in procurement.

Framework Agreement

A framework agreement is an agreement between a contracting authority and one or more suppliers, the purpose of which is to establish the terms and conditions that will govern future contracts to be awarded during a specific period of time. The framework agreement does not constitute a contract in itself but rather sets out the terms and conditions that will apply to the actual contracts that will be awarded in the future.

The framework agreement typically specifies the scope of the goods or services to be procured, the estimated quantities, the terms and conditions of delivery, and the pricing methodology. The framework agreement may also set out the evaluation and selection criteria that will be used to award the actual contracts.

Framework Contract

A framework contract, on the other hand, is a contract that is awarded based on the terms and conditions established in the framework agreement. A framework contract is a binding agreement between the contracting authority and a supplier, which sets out the terms and conditions for the supply of goods or services during a specified period of time.

The framework contract will typically specify the quantity, frequency, and nature of the goods or services to be supplied, as well as the pricing methodology and the terms and conditions of delivery. The framework contract may also set out the terms and conditions for any changes or amendments that may be made during the term of the contract.

Key Differences

The main difference between a framework agreement and a framework contract is that a framework agreement is not a contract but rather a set of terms and conditions that will govern future contracts. A framework contract, on the other hand, is a contract that is awarded based on the terms and conditions established in the framework agreement.

Another key difference is that a framework agreement may be used to establish a pool of pre-qualified suppliers, while a framework contract is awarded to a specific supplier. This means that a framework agreement may be used to establish a framework of suppliers that can be called upon to supply goods or services when needed, while a framework contract is awarded to a single supplier for a specific period of time.

Conclusion

In summary, while framework agreement and framework contract may seem similar, they refer to different things. A framework agreement is a set of terms and conditions that will govern future contracts, while a framework contract is a binding agreement between a contracting authority and a supplier that is awarded based on the terms and conditions established in the framework agreement. Understanding the differences between the two is essential for anyone working in procurement.

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