Framework Contract In Procurement for United Arab Emirates

Framework Contract In Procurement Template for United Arab Emirates

A Framework Contract in Procurement under UAE law establishes a long-term agreement between a buyer and supplier for the repeat purchase of goods or services. This document, governed by UAE federal and emirate-specific procurement laws, sets out the terms, conditions, and mechanisms for future transactions without committing to specific quantities. It includes provisions for pricing, ordering procedures, performance standards, and compliance with UAE regulations, while incorporating specific requirements such as local content provisions and UAE Civil Code compliance. The agreement provides flexibility for multiple call-offs while maintaining standardized terms and conditions throughout the procurement relationship.

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What is a Framework Contract In Procurement?

The Framework Contract In Procurement is a strategic document used to establish a long-term procurement relationship between parties operating under UAE jurisdiction. It is particularly valuable when organizations anticipate recurring procurement needs but cannot specify exact quantities or timing in advance. This agreement type is commonly used in both public and private sector procurement in the UAE, providing a compliant structure for multiple future transactions while reducing administrative burden. The document incorporates UAE-specific legal requirements, including federal procurement regulations, emirate-level requirements, and Civil Code provisions. It typically includes detailed mechanisms for ordering, pricing adjustments, performance monitoring, and dispute resolution, all aligned with UAE legal frameworks. The agreement is designed to balance flexibility with standardization, enabling efficient procurement while maintaining proper governance and control.

What sections should be included in a Framework Contract In Procurement?

1. Parties: Identification of the supplier and buyer, including full legal names, registration details, and addresses

2. Background: Context of the framework agreement, procurement needs, and general intention of the parties

3. Definitions: Defined terms used throughout the agreement, including procurement-specific terminology

4. Scope of Framework: Description of goods/services covered, exclusivity arrangements, and framework operation

5. Duration: Term of the framework agreement, including commencement date, expiry, and extension options

6. Order Process: Procedures for placing and accepting orders under the framework

7. Pricing Structure: Pricing mechanism, price adjustments, payment terms, and invoicing requirements

8. Performance Standards: Quality standards, KPIs, and service levels applicable to all orders

9. Supplier Obligations: Core obligations including compliance, reporting, and performance requirements

10. Buyer Obligations: Core obligations including cooperation, access, and information provision

11. Ordering Procedure: Detailed process for call-offs, including forms, timeframes, and acceptance procedures

12. Warranties and Representations: Standard and specific warranties relating to capacity, quality, and compliance

13. Liability and Indemnities: Allocation of risks, limitation of liability, and indemnification provisions

14. Termination: Termination rights, procedures, and consequences for both framework and individual orders

15. Confidentiality: Protection of confidential information and trade secrets

16. Dispute Resolution: Dispute resolution procedures compliant with UAE law

17. General Provisions: Standard boilerplate clauses including notices, amendments, and severability

What sections are optional to include in a Framework Contract In Procurement?

1. Electronic Procurement Platform: Include when parties will use an e-procurement system for order placement and management

2. Volume Commitments: Include when there are minimum or maximum order quantities

3. Multiple Supplier Provisions: Include when framework is part of a multi-supplier arrangement

4. Security Requirements: Include when supplier needs to provide performance bonds or bank guarantees

5. Local Content Requirements: Include when UAE local content requirements apply

6. Export Control: Include when goods/services are subject to export control regulations

7. Intellectual Property Rights: Include when IP creation or licensing is relevant to the procurement

8. Data Protection: Include when personal data processing is involved

9. Force Majeure: Include when specific force majeure provisions beyond UAE law are required

10. Step-In Rights: Include for critical supply arrangements requiring backup options

What schedules should be included in a Framework Contract In Procurement?

1. Schedule 1 - Goods/Services Specification: Detailed specifications of all goods/services covered by the framework

2. Schedule 2 - Pricing Schedule: Detailed pricing structure, rates, and any volume-based discounts

3. Schedule 3 - Service Levels: Detailed performance metrics, measurement methods, and remedies

4. Schedule 4 - Order Form Template: Standard form for placing orders under the framework

5. Schedule 5 - Key Personnel: List of key supplier personnel and their roles

6. Schedule 6 - Implementation Plan: Timeline and process for framework implementation

7. Schedule 7 - Governance and Reporting: Detailed governance structure and reporting requirements

8. Schedule 8 - Security Requirements: Specific security protocols and requirements

9. Appendix A - Technical Requirements: Detailed technical specifications and standards

10. Appendix B - Compliance Requirements: List of applicable regulations and compliance requirements

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Publisher

Genie AI

Document Type

Service Agreement

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Oil & Gas

Construction

Healthcare

Technology

Manufacturing

Retail

Transportation & Logistics

Financial Services

Government Services

Telecommunications

Education

Hospitality

Energy

Defense

Infrastructure

Relevant Teams

Procurement

Legal

Finance

Commercial

Operations

Supply Chain

Risk & Compliance

Vendor Management

Contract Administration

Strategic Sourcing

Relevant Roles

Procurement Manager

Supply Chain Director

Legal Counsel

Commercial Manager

Contract Manager

Chief Procurement Officer

Sourcing Manager

Vendor Manager

Category Manager

Operations Director

Finance Director

Compliance Officer

Risk Manager

Business Unit Head

Project Manager

Supply Chain Analyst

Procurement Specialist

Legal Director

Chief Financial Officer

General Counsel

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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