Framework agreements

Framework agreements are widely used in the construction industry: a framework agreement is an umbrella agreement that 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 such supplier(s). As the name suggests, the agreement sets the ‘framework’ for a strategic partnering relationship which can range from a loose arrangement with one or more suppliers that the client likes to work with, to something more formal. See Practice Note: Introduction to framework agreements for construction lawyers.

Framework agreements are sometimes used in the private sector but are more widely used in the public sector. The establishment and operation of a framework agreement may be subject to public procurement rules. Under the Procurement Act 2023, s 45(2), a framework is a contract between a contracting authority and one or more suppliers providing for the future award of contracts...