Q&As

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?

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Produced in partnership with Peter Ware and Victoria Searle of Browne Jacobson LLP
Last updated on 19/07/2019

The following Public Law Q&A produced in partnership with Peter Ware and Victoria Searle of Browne Jacobson LLP provides comprehensive and up to date legal information covering:

  • 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 of framework agreements and the public procurement regime more generally is available in the following Practice Notes:

  1. Introduction to public contracts procurement

Related documents:
Key definition:
Authority definition
What does Authority mean?

The public sector body procuring the project. This might, for example, be a Local Authority, an NHS Trust, a central Government Department or a Non-Departmental Public Body.

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