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What is a Framework Agreement?

What is a Framework Agreement? What are the benefits of getting onto a Framework Agreement?

It is estimated that up to 45% of procurement in the UK is based on framework agreements. A procurement framework is an agreement put in place with a provider or range of providers that enables buyers to place orders for services without running lengthy full tendering exercises. Frameworks are based on large volume buying. Due to the larger amount of suppliers entered into a Framework agreement they offer businesses a higher chance of success should they wish to bid to go onto a Framework Agreement.

Many businesses are ‘put off’ by applying to go onto a Framework Agreement. The main reason for this it that due to the high number of suppliers entered on to the agreement competition to supply may be high, should you successfully obtain a place on the Framework you are not guaranteed any business. This means it is up to you to win the business should you successfully secure a place on the agreement.

This can work to your advantage. By being an approved supplier you will have already demonstrated your competence to supply, any questions about your capabilities have already been answered as part of the bidding process and you have been approved. This will open up opportunities to you to ‘sell’ your services. If you are not an approved supplier you cannot even enter into a conversation with the buyer however good your services may be to supply.

As a new business or a business that has never tendered before Framework Agreements can be a great starting point. As success rates can be higher due to the number of places being awarded, you potentially stand a higher chance of success. Once you are successfully supplying a Framework Agreement you will be able to use this as an example in any future tenders you may go for.

In all cases you need to make sure you fulfil all of the requirements of the agreement and that should you successfully secure a place on the agreement your business is capable and fit to supply. You also need to ensure your business complies with all the mandatory criteria set by the buyer.

Need further help or advice?

As with any new business bid to ensure you win, you will need to produce a compelling, realistic buyer focussed document that will enable your business to stand out from the competition. Klick Business Solutions is an outsourced tender writing service. We have had significant success in a wide and diverse range of major Framework Agreements.

For more information on how we can help please get in touch,

01384 279568

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