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Contracts & Pricing

Framework Agreement

Also known as: Framework contract

A framework agreement is a long-term contract that sets agreed terms and pricing with one or more suppliers, from which specific orders are called off as needed.

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A framework establishes the terms — prices, service levels and conditions — up front, then lets the buyer place repeated 'call-off' orders against it over the agreement's life without re-tendering each time. It is widely used in public sector and large enterprise procurement for recurring needs.

Frameworks can be single-supplier or multi-supplier, with call-offs awarded directly or via a mini-competition among the framework suppliers. They cut procurement cycle time and give price certainty while keeping some competitive tension.

Frequently asked questions

What is a framework agreement?
A framework agreement is a long-term contract fixing terms and pricing with one or more suppliers, against which the buyer places call-off orders as needs arise, without re-tendering each time.
What is a call-off order?
A call-off order is an individual order placed against an existing framework agreement, using the pre-agreed terms and pricing.

Explore related across the knowledge graph

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