What is it?
A framework agreement (sometimes referred to as master services agreements) 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 contract may be awarded by the employer to the supplier(s).
Framework agreements can also be useful when entering into agreements for the provision of goods and services across a number of jurisdictions.
When to use a Framework Agreement?
In construction, such 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.
They 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 framework agreements, in most cases, are not considered to be contract themselves, the procurement by a contracting authority to establish a framework agreement is subject to EU procurement rules.
The UK public procurement regime derives from EU public procurement laws, and is therefore impacted by the UK’s withdrawal from the EU.
I offer legal expertise on:
- Advantages and disadvantages of implementing framework agreements based on the particularities of each project;
- Standard form framework agreements. I advise on choosing the appropriate standard form framework agreement published by various industry bodies such as the JCT Framework Agreement and the NEC4 Framework Contract;
- Advising on the binding or non-binding nature of the agreement, depending on the preference of the employer and the relationship it is aiming to establish.
For further information or to discuss a matter, please Contact me.