Framework agreement
A framework agreement, common in the public sector and larger European buyers, sets terms and prices for call-offs. The call-offs commit the money.
Framework: Sets terms, commits no money. Excluded from spend totals.
Key takeaways
- Count call-offs in spend, not the framework.
- Record the framework's own term and any maximum value.
- Link each call-off to its framework.
How is it different from a master services agreement?
In structure, very little: both set terms for later commitments. Framework agreements more often state prices and a ceiling for the whole framework.
What to record
- Framework term
- Ceiling value, if any
- Call-offs beneath it
Frequently asked questions
Is the framework ceiling committed spend?
No. It is a limit, not a commitment. Only call-offs commit money.
General working knowledge about commercial contracts, not legal advice. Your own agreement governs.