Jurisdiction(s):
United Kingdom

Key definition

Framework agreement definition

What does Framework agreement mean? A framework agreement is an umbrella contract that sets standard terms and procedures for awarding future, individual contracts (call-off contracts) between the same parties, allowing repeat purchases or projects without re‑negotiating core terms. It is used across the private sector and, especially, in public procurement. In public procurement, the term is defined in legislation: in England and Wales and Northern Ireland by the Public Contracts Regulations 2015 (and Utilities rules), in Scotland by the Public Contracts (Scotland) Regulations 2015, and in Ireland by the 2016 Regulations implementing Directive 2014/24/EU. The statutory concept is an arrangement to establish the terms...

Construction Framework Agreements for Lawyers: operation, call-off mechanics, benefits, public procurement rules, binding versus non-binding status, and JCT, NEC4 and FAC-1 standard forms

Published by a LexisNexis Construction expert

Practice notes

What is a Framework agreement?

A framework agreement is a high-level umbrella arrangement entered into by a party and one or more suppliers (which may include contractors, sub-contractors, suppliers or Consultants). It sets the terms that will govern an ongoing relationship under which the employer may award one or more contracts to the supplier(s) over time. In construction, such arrangements are often made between employers and multiple contractors, suppliers or consultants, and sometimes between contractors and a range of sub-contractors, suppliers or consultants. Despite the variety of relationships that can sit within a framework, for simplicity this Practice Note uses the terms ‘employer’ and ‘supplier’. Framework agreements appear in the private sector, yet they are more prevalent in the public sector, used by central government departments and bodies as well as local authorities. Although, in most instances, a framework agreement is not itself a contract, the process by which a contracting authority sets one up is governed by public Procurement rules.

How does a framework agreement work?

A framework may cover the procurement of supplies, goods or works, but it does not, of itself, place orders for supplies/goods or instruct works...

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Web page updated on 21/05/2026

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