Framework agreements save time and costs in a procurement process by avoiding the need to renegotiate terms and conditions of sale. With respect to long-term purchases, these agreements help to improve the relationship between buyers and sellers, working together to provide tailored solutions that better meet the needs of both parties. They support long-term relationships with suppliers, creating a more favourable business environment for more sustainable investment and employment, and reducing wasteful processes and physical resources. The initial work required to create such a framework is more than that required for the tendering and the awarding of a single market, but the benefits of electricity will far outweigh. Companies that have entered into framework contracts have received up to 10% of the annual improvements in delivery time and costs. This is particularly the case when the application of these rules is combined with e-purchase systems. When entering into framework agreements, buyers should be aware of the effects of limited competition from repeated purchases of the same products from the same suppliers for longer periods of time. It is therefore important that the advantage of establishing long-term partnerships is against the advantage of opening up competition to potential new suppliers, especially SMEs, in order to keep up with the ever-changing market. Framework agreements should be reached when the buyer must establish, over a long period of time, a strategic relationship with the supply chain, in which suppliers can adapt to the buyer`s requirements. Specifications and evaluation criteria are defined in advance and cannot be changed during the currency of the agreement, which lasts at least 12 months to a maximum of 3 years. Subsequently, conditions and prices can be renegotiated to ensure that they are in line with changing market conditions.
Recommendation 18 of the EEC-UN supports the implementation of such agreements. In addition, it is recommended that an intermediary for the provision of commercial and transport services in an international supply chain (measures 1.1 and 1.2) be included in the framework contract between supplier and purchaser.