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Framework Agreement
I need a framework agreement to establish a collaborative partnership between two companies for a joint project, outlining the roles, responsibilities, and deliverables of each party, with provisions for confidentiality, dispute resolution, and a termination clause with a 30-day notice period.
What is a Framework Agreement?
A Framework Agreement sets up the basic terms for a series of future contracts between parties, without committing to specific quantities or exact details upfront. It's commonly used in Irish public procurement when government bodies need ongoing supplies or services but want flexibility in their purchasing.
These agreements typically run for 2-4 years and create a streamlined way to make multiple purchases without running separate tenders each time. For example, a local authority might establish a framework with several office supply companies, then place orders as needed. This approach saves time, reduces costs, and complies with Irish public procurement rules while maintaining competitive pricing.
When should you use a Framework Agreement?
Framework Agreements make perfect sense when you need regular supplies or services but can't predict exact quantities or timing. They're especially valuable for Irish public bodies managing ongoing needs like office supplies, IT equipment, or professional services where running individual tenders would waste time and resources.
Consider using a Framework Agreement when you have multiple departments needing similar items, want to lock in competitive pricing, or need quick access to pre-approved suppliers. It's particularly useful for Irish organizations spending above EU procurement thresholds who need to maintain compliance while keeping their purchasing process agile and cost-effective.
What are the different types of Framework Agreement?
- Framework Contract: Basic template for one-to-one supplier relationships, ideal for consistent, repeated purchases from a single vendor
- Collaboration Framework Agreement: Designed for multiple parties working together on projects, with shared resources and responsibilities
- Government Framework Agreement: Specifically structured for public sector procurement, incorporating EU and Irish public tender requirements
- Partnership Framework Agreement: Focuses on long-term strategic partnerships with detailed governance and profit-sharing arrangements
Who should typically use a Framework Agreement?
- Public Sector Bodies: Government departments, local authorities, and state agencies use Framework Agreements to streamline their procurement processes and ensure compliance with Irish and EU regulations
- Procurement Officers: Draft specifications, manage supplier relationships, and oversee the tender process for their organizations
- Suppliers: Compete to join framework panels, providing goods or services under pre-agreed terms and conditions
- Legal Teams: Review and adapt framework terms to ensure compliance and protect their organization's interests
- End Users: Department managers and staff who place orders through the framework, following established procedures
How do you write a Framework Agreement?
- Define Scope: List all products or services needed, expected quantities, and delivery timeframes
- Identify Parties: Gather full legal names, addresses, and registration details of all participating organizations
- Set Terms: Decide on contract duration, pricing mechanisms, and performance metrics
- Compliance Check: Review Irish public procurement thresholds and EU requirements if applicable
- Draft Process: Use our platform to generate a legally-sound Framework Agreement that includes all mandatory elements
- Internal Review: Have key stakeholders validate commercial terms and operational requirements before finalizing
What should be included in a Framework Agreement?
- Party Details: Full legal names, addresses, and registration numbers of all participating organizations
- Framework Scope: Clear description of goods/services, pricing structure, and ordering mechanisms
- Duration Terms: Start date, end date, and extension options under Irish procurement rules
- Ordering Process: Detailed procedures for call-offs, minimum/maximum quantities, and delivery terms
- Performance Standards: Quality requirements, KPIs, and service level agreements
- GDPR Compliance: Data protection obligations and processing requirements under Irish law
- Dispute Resolution: Irish jurisdiction clause and agreed resolution procedures
What's the difference between a Framework Agreement and a Business Acquisition Agreement?
Framework Agreements are often confused with Business Acquisition Agreements in Irish commercial law, but they serve distinctly different purposes. While both involve detailed commercial relationships, their scope and application differ significantly.
- Duration and Flexibility: Framework Agreements establish ongoing purchasing arrangements over 2-4 years, while Business Acquisition Agreement covers a one-time transaction
- Purpose: Framework Agreements create a structure for future orders without firm commitments, whereas Business Acquisition Agreements detail the permanent transfer of business ownership or assets
- Payment Terms: Framework Agreements usually involve multiple smaller payments based on call-offs, while Business Acquisition Agreements typically involve larger, one-off payments
- Risk Profile: Framework Agreements spread risk across multiple transactions, offering more flexibility to adjust terms, while Business Acquisition Agreements concentrate risk in a single, decisive transaction
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