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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

GuideContract managementThe discipline that turns a negotiated agreement into delivered value — keeping contracts used, monitored and renewed on time.TemplateContract Register TemplateAn Excel register to track every supplier contract, its value and renewal dates, with automatic expiry alerts.GlossaryBank GuaranteeA bank guarantee is a promise from a bank to pay a beneficiary a stated amount if the bank's customer fails to meet a defined obligation.GlossaryCall-Off OrderA call-off order is an individual order placed against an existing framework agreement or blanket purchase order to draw down agreed goods or services as needed.GlossaryContract AwardContract award is the formal decision to appoint a chosen supplier and enter into a contract after a sourcing or tender process concludes.GlossaryContract ComplianceContract compliance is the degree to which purchasing actually follows the prices, terms and conditions set out in agreed contracts.GlossaryContract Lifecycle Management (CLM)Contract lifecycle management (CLM) is the structured management of a contract through every stage, from drafting and negotiation to renewal or expiry.GlossaryContract NegotiationContract negotiation is the process of discussing and agreeing the price, terms and conditions of a contract before both parties sign.GlossaryContract RenewalContract renewal is the process of reviewing and extending a contract as it approaches expiry, either on the same terms or on renegotiated ones.GlossaryContract VariationA contract variation is a formal change to the agreed scope, price, timeline or terms of an existing contract, made with both parties' consent.GlossaryCost-plus ContractA cost-plus contract pays the supplier for its allowable costs plus an additional agreed amount for profit, rather than a single fixed price.GlossaryDiscount StructureA discount structure is the set of rules a supplier uses to reduce list prices, based on factors such as volume, order value, payment timing or customer tier.GlossaryEvergreen ContractAn evergreen contract is an agreement that automatically renews at the end of each term unless one party gives notice to cancel or change it.GlossaryFixed-price ContractA fixed-price contract sets a single agreed price for defined goods or services regardless of the supplier's actual costs to deliver them.GlossaryForce MajeureForce majeure is a contract clause that excuses a party from its obligations when an extraordinary event beyond its control prevents performance.
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Operating model · diagram

  1. 01

    AI-first software

    AI-first procurement software for long-tail spend

  2. 02

    Live marketplace

    A live B2B marketplace

  3. 03

    Human services

    Human sourcing and support

  4. 04

    Optional add-on

    Fulfilment support for merchants