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Structure Of A Framework Agreement

Like a tender for a contract, the framework award is usually a mixture of quality and price. The buyer then reviews all the framework offers and authorizes a certain number of bidders who obtain a place in the framework. There needs to be a framework for building units as part of a major construction program. Following a notice of the Official Journal of the European Union and a selection procedure based on financial and economic capacity and technical capacity, a small number of main contractors shall be set up for the units to be built throughout the duration of the agreement, if necessary. The units in question may include prison cells, categories of hospital beds (e.g. B acute, accidental and emergency garages, etc.), garages, etc., with a standard size, standard design or standard requirement. Prizes are awarded on the basis of a particular mix of quality/unit prices to meet needs. During the call phase, a mini-competition is organised and tenders are entered by all contractors who are able to meet the specific unit requirement, with consultation entrusted to the contractor who provides the « most economically advantageous » tender for the necessary units. However, a framework agreement is not a contract itself, but simply an agreement on the terms that would apply to any order placed during its term.

In this case, a contract is only concluded when the order is placed and each order is a separate contract. Although this type of agreement is not technically a « contract », you must nevertheless comply with EU public procurement rules. From the client`s perspective, an executive is essentially a way to obtain products and services over a period of time (up to four years now) for a number of projects or projects. However, the impact on the local supply chain can be detrimental if local suppliers are excluded in favour of large companies with little interest in local companies. This is a real concern of many contracting authorities and the SME community. A framework agreement is needed to cover the paper needs of a number of authorities over a four-year period. Following the opinion of the Official Journal of the European Union and the selection procedure based on financial and economic capacity and technical capacity, tenders are evaluated on the basis of `economically the most advantageous` for accession to the framework. A number of suppliers are included in the framework to provide a variety of pulps, simple, fed, recycled, colored, etc. – over a period of four years.

The power is conferred on the supplier in the context where, on the basis of the initial award criteria, the tender is the « most economically advantageous » for each call required during the four years. Since it is not necessary to refine or supplement the conditions in this case, it is not necessary for the Authority to use the mini-competition option. Framework contracts save time and costs in a purchasing process by avoiding the renegotiating of standard terms. In the case of long-term purchases, these agreements help improve the relationship between buyers and sellers, collaborating to provide tailor-made solutions that better meet the needs of both parties. They support long-term relationships with suppliers, creating a business environment that is more conducive to sustainable investment and employment, reducing the waste of processes and physical resources. The initial work required to establish such a framework is more extensive than that of tendering and awarding a large-scale contract, but the anticipated benefits will far outweigh this. .