Framework Agreements

A framework agreement is an agreement between a procurement unit (here Hansel Ltd) and one or several suppliers. Its purpose is to determine the conditions for procurement contracts signed within a certain period of time

The actual procurement contracts must be signed between the parties included in the original framework agreement. It is not possible to increase the number of parties to a framework agreement during its period of validity, nor can substantial changes be made to its terms and conditions. Framework agreements may not be used in ways that distort, limit or prevent competition.
 
The framework agreements’ suppliers are usually selected through open or restricted tendering, in compliance with the applicable time and notification requirements. By joining a framework agreement, the amount of administrative work carried out in different units can be significantly reduced, as purchases can be made during the validity period without the need for new tendering processes.
 
Framework agreements also allow for relatively long-term contracts. Hansel’s framework agreements are generally in force for four years. Some types of acquisitions require contracts for a longer term, however, in which case the agreements can be longer.
 
Hansel has 70 framework agreements and 400 contract suppliers.