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GLOSSARY
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.
PRECEDENTS
This Agreement is made on [date] Parties 1 [Insert name of supplier company], a company incorporated in [England and Wales] under number [insert registered number] whose registered office is at [insert registered office] (Supplier); and 2 [insert name of customer company], a company incorporated in [England and Wales] under number [insert registered number] whose registered office is at [insert registered office] (Customer), each of the Supplier and Customer being a party and together the Supplier and Customer are the parties. Background (A) The Supplier is a supplier of[ IT products and services]. (B) The Customer has appointed the Supplier, subject to this Agreement, to supply Products and/or Services as set out in the Statements of Work. The parties agree: 1 Definitions and interpretation 1.1 In this Agreement: Acceptance • means the Solution passing the Acceptance Tests in all material respects under clause 7.4 or being deemed accepted under clauses 7.5, 7.6.3(a) or 7.7.2(a); Acceptance Criteria • means (if any) the acceptance criteria set out in the Statement of Work or as otherwise agreed in writing between the parties; Acceptance Failure • has the meaning given in clause 7.6; Acceptance Testing Period • means the acceptance
PRECEDENTS
This Agreement is made on [date] Parties 1 [insert name of customer company] a company incorporated in [England and Wales] under number [insert registered number] whose registered office is at [insert registered office] (Customer); and 2 [insert name of supplier company] a company incorporated in [England and Wales] under number [insert registered number] whose registered office is at [insert registered office] (Supplier), each of the Customer and Supplier being a party and together the Customer and Supplier are the parties. BACKGROUND (A) The Supplier is a supplier of[ IT products and services]. (B) The Customer has appointed the Supplier, subject to this Agreement, to supply Products and/or Services as set out in the Statements of Work. the parties agree: 1 Definitions and interpretation 1.1 In this Agreement: Acceptance • is as defined in clause 6.4; Acceptance Criteria • means (if any) the acceptance criteria set out in the Statement of Work or as otherwise agreed in writing between the parties; Acceptance Failure • is as defined in clause 6.5; Acceptance Testing Period • means the period set out in the Statement of Work (or otherwise agreed in writing between the parties). Otherwise, if no period is
PRECEDENTS
This Agreement is made on [date] Parties 1 [insert name of supplier company] a company incorporated in [England and Wales] under number [insert registered number] whose registered office is at [insert registered office] (Supplier); and 2 [insert name of customer company] a company incorporated in [England and Wales] under number [insert registered number] whose registered office is at [insert registered office] (Customer), each of the Supplier and Customer being a party and together the Supplier and Customer are the parties. BACKGROUND (A) The Supplier is a supplier of [IT products and services]. (B) The Customer has appointed the Supplier, subject to this Agreement, to supply Products and/or Services as set out in the Statements of Work. The parties agree: 1 Definitions and interpretation 1.1 In this Agreement: Acceptance • means the Solution passing the Acceptance Tests in all material respects under clause 8.3 or being deemed accepted under clauses 8.4, 8.5.2(a) or 8.7.2; Acceptance Criteria • means (if any) the acceptance criteria set out in the Statement of Work or as otherwise agreed in writing between the parties; Acceptance Failure • is as defined in clause 8.5; Acceptance Testing Period • means the period set out in the Statement
PRECEDENTS
This Agreement is made on [date] Parties 1 [Insert name of supplier company], a company incorporated in [England and Wales] under number [insert registered number] whose registered office is at [insert registered office] (Supplier); and 2 [Insert name of customer company], a company incorporated in [England and Wales] under number [insert registered number] whose registered office is at [insert registered office] (Customer), each of the Supplier and Customer being a party and together the Supplier and Customer are the parties. Background (A) The Supplier is a supplier of[ IT products and services]. (B) The Customer has appointed the Supplier, subject to this Agreement, to supply Products and/or Services as set out in the Statements of Work. The parties agree: 1 Definitions and interpretation 1.1 In this Agreement: Agreement Term • has the meaning given in clause 3.1; Business Day • means a day other than a Saturday, Sunday or bank or public holiday in England; Commencement Date • means the date of this Agreement; Confidential Information • has the meaning given in clause 10; Customer Default • means the Customer’s: (i) breach of any of its obligations under this Agreement; (ii) negligence; or (iii) other unlawful act or omission; Customer
PRACTICE NOTES
Stop Press: On 24 February 2025, the main provisions of the Public Procurement Act 2023 (PA 2023) come into force. We are reviewing and updating our content accordingly. Note, however, that procurements begun on or after 24 February must be carried out under PA 2023, whereas those begun under the previous legislation (the Public Contracts Regulations 2015 (PCR 2015), the Utilities Contracts Regulations 2016, the Concession Regulations 2016, and the Defence and Security Public Contracts Regulations 2011) must continue to be procured and managed under that legislation. For background reading, see Practice Note: Introduction to the Procurement Act 2023—PA 2023. This Practice Note looks at call-off procedures in framework agreements in the construction industry. It looks principally at how contracts are called-off in the private sector but also considers call-off procedures under framework agreements in the public sector with links to more detailed content specifically relating to that sector. Framework agreements are used in the construction industry by both public and private sector clients to procure works, services and supplies (see Practice Note: Introduction to framework agreements
PRACTICE NOTES
Stop Press: On 24 February 2025, the main provisions of the Public Procurement Act 2023 (PA 2023) come into force. We are reviewing and updating our content accordingly. Note, however, that procurements begun on or after 24 February must be carried out under PA 2023, whereas those begun under the previous legislation (the Public Contracts Regulations 2015 (PCR 2015), the Utilities Contracts Regulations 2016, the Concession Regulations 2016, and the Defence and Security Public Contracts Regulations 2011) must continue to be procured and managed under that legislation. For background reading, see Practice Note: Introduction to the Procurement Act 2023—PA 2023. Framework agreements are used in the procurement of construction projects in both the public and private sectors. They are, however, more extensively found in the public sector where they are subject to the public procurement rules. This Practice Note examines the procurement and tendering of frameworks in both sectors. It considers the regulation of framework agreements in the public sector and also looks at the duration of framework agreements and pricing under them and at how the terms for the
PRACTICE NOTES
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 FA The 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
PRACTICE NOTES
STOP PRESS: As of 24 February 2025, the main provisions of the Procurement Act 2023 (PA 2023) are in force. Procurements begun on or after this date must be carried out under PA 2023, whereas those begun under the previous legislation (the Public Contracts Regulations 2015 (PCR 2015), the Utilities Contracts Regulations 2016, the Concession Regulations 2016, and the Defence and Security Public Contracts Regulations 2011) must continue to be procured and managed under that legislation. See Practice Note: Introduction to the Procurement Act 2023—PA 2023. PCR 2015 as assimilated law PCR 2015 are EU-derived domestic legislation and therefore assimilated law under sections 2 and 6 of the European Union (Withdrawal) Act 2018. For practical guidance on the status and interpretation of assimilated law, see Practice Note: Assimilated law. STOP PRESS: The Procurement Act 2023 comes into force on 28 October 2024. For further reading, see Practice Note: Introduction to the Procurement Act 2023—PA 2023 and Checklist: Procurement Act 2023—key changes. The transitional arrangements for the coming into force
PRECEDENTS
This Agreement is made on [date]. Parties 1 [insert name of Customer] [of OR a company incorporated in [England and Wales] under number [insert registered number] whose registered office is at [insert address]] (Customer); and 2 [insert name of Supplier] [of OR a company incorporated in [England and Wales] under number [insert registered number] whose registered office is at] [insert address] (Supplier) (each of the Supplier and the Customer being a party and together the Supplier and the Customer are the parties). Background (A) The Customer conducts the business of [insert description]. (B) The Supplier conducts the business of supplying [insert description of services] to other businesses. (C) The parties have agreed that the Supplier shall supply services to the Customer and its Affiliates under individual services contracts entered into between the Customer or any of its Affiliates and the Supplier from time to time. (D) The parties wish to set out in this Agreement the terms under which the individual services contracts shall be entered into. The parties agree: 1 Definitions and interpretation 1.1 In this Agreement: Affiliate • means any entity that directly or indirectly Controls, is Controlled by, or is under common
PRECEDENTS
This Agreement is made on [date] Parties 1 [insert name of Customer] [of OR a company incorporated in [England and Wales] under number [insert registered number] whose registered office is at] [insert address] (Customer); and 2 [insert name of Supplier] [of OR a company incorporated in [England and Wales] under number [insert registered number] whose registered office is at] [insert address] (Supplier) (each of the Supplier and the Customer being a party and together the Supplier and the Customer are the parties). Background (A) The Customer conducts the business of [insert description]. (B) The Supplier conducts the business of supplying [insert description of services] to other businesses. (C) The parties have agreed that the Supplier shall supply services to the Customer and its Affiliates under individual services contracts entered into between the Customer or any of its Affiliates and the Supplier from time to time. (D) The parties wish to set out in this Agreement the terms under which the individual services contracts shall be entered into. The parties agree: 1 Definitions and interpretation 1.1 In this Agreement: Affiliate • means any entity that directly or indirectly Controls, is Controlled by, or is under common
GLOSSARY
This concept became known following the publication of the FAC-1 Framework Alliance Contract in 2016. According to the author of FAC-1, framework alliancing draws on the processes involved in framework agreements but combines them with the collaborative features of an alliance contract.