Framework agreement

According to Section 103 (5) of the ARC, framework agreements are agreements between one or more contracting authorities and one or more companies that define the terms and conditions for public contracts to be awarded during a certain period.  The framework agreement sets out specific rules for performance, in particular the price, but not the volume of the contract. For predictable but uncertain requirements in terms of volume, it is therefore a good idea to conclude a framework agreement.

Since the number of subsequent individual call-offs is not limited, the term of the framework agreement is in any case limited to 4 years and, within the scope of application of the Sub-Threshold Regulation, to a maximum of 6 years. In exceptional cases, a longer term may be agreed.

The same rules apply to the award of framework agreements as to the award of public (individual) contracts. However, there are also some special rules. For example, in the upper threshold range, a maximum quantity or value must be specified. If it is reached, the framework agreement loses its effect.