Framework Agreement

A framework agreement is a general term for procurement agreements with supplier(s) that set out terms and conditions that allow public bodies to order goods or services throughout the term of the agreement for the repetitive purchases under the terms and conditions specified in that framework agreement (Shakya 2013).

Introduction

Procurement entities need to procure goods, works, and/or services very frequently to achieve the organizational, project, or national development objectives. More often similar items are procured in repetitive manner following the traditional procurement methods and processes, which consequently involves more time and more bidding process costs. Framework agreement is one of the most popular procurement methods in the modern procurement practices for procuring such repetitive purchases. Framework agreement procedures are often used to procure the goods, works, and services for which a procuring.