Framework Contract In Procurement for India

Framework Contract In Procurement Template for India

A Framework Contract in Procurement under Indian law establishes a long-term agreement between a buyer and supplier(s) for the recurring supply of goods, services, or works. This document, governed by Indian contract law and procurement regulations, sets out the terms, conditions, and mechanisms for future procurement without establishing immediate purchase obligations. It includes detailed provisions for ordering procedures, pricing mechanisms, quality standards, and performance monitoring, while ensuring compliance with Indian procurement laws, particularly the General Financial Rules 2017 for public sector procurement.

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What is a Framework Contract In Procurement?

The Framework Contract in Procurement is essential for organizations requiring a structured approach to recurring procurement needs while maintaining flexibility in purchase timing and quantities. This document type is particularly relevant in the Indian legal context, where it must comply with the Indian Contract Act 1872 and, for public procurement, the General Financial Rules 2017. It establishes the general terms, conditions, and procedures for future procurement activities without committing to specific purchase volumes, typically including pricing mechanisms, quality standards, ordering procedures, and performance metrics. The framework approach is especially valuable for organizations seeking to streamline procurement processes, ensure consistency in terms, and maintain competitive pricing while reducing administrative burden in repeated procurement activities.

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

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

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

3. Definitions and Interpretation: Definitions of key terms and interpretation rules for the agreement

4. Scope of Framework Agreement: Overview of goods/services covered and general mechanics of the framework

5. Duration and Term: Initial term, extension options, and termination provisions

6. Framework Mechanics: Process for placing orders, accepting/rejecting orders, and contract formation under the framework

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

8. Quality Standards: Required quality standards, specifications, and compliance requirements

9. Ordering Process: Detailed procedures for placing and fulfilling orders

10. Performance Monitoring: KPIs, performance review process, and reporting requirements

11. Warranties and Representations: Standard and specific warranties regarding capacity, quality, and compliance

12. Liability and Indemnification: Allocation of risks, limitation of liability, and indemnification obligations

13. Confidentiality: Protection of confidential information and trade secrets

14. Force Majeure: Events excusing performance and related procedures

15. Dispute Resolution: Dispute resolution procedures including arbitration provisions

16. Governing Law: Applicable law and jurisdiction

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

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

1. Compliance with Public Procurement Rules: Required for public sector procurement - includes specific compliance requirements with GFR 2017 and other public procurement rules

2. E-Procurement Procedures: Include when framework will utilize electronic procurement systems

3. Intellectual Property Rights: Required when procurement involves software, technology or proprietary items

4. Data Protection and Privacy: Include when personal data processing is involved in the procurement process

5. Environmental Compliance: Include for procurement involving environmental considerations or hazardous materials

6. Import/Export Compliance: Required when procurement involves international trade

7. Security Requirements: Include for procurement involving sensitive items or requiring specific security measures

8. Anti-Corruption Compliance: Detailed section required for high-value or public sector procurement

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

1. Schedule 1 - Goods/Services Specifications: Detailed technical specifications of goods/services covered under the framework

2. Schedule 2 - Pricing Schedule: Detailed pricing information, rate cards, and price adjustment mechanisms

3. Schedule 3 - Service Levels and KPIs: Detailed performance metrics and measurement criteria

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

5. Schedule 5 - Operational Procedures: Detailed procedures for day-to-day operations including ordering, delivery, and acceptance

6. Schedule 6 - Contact Details and Escalation Matrix: Key contacts and escalation procedures for both parties

7. Schedule 7 - Compliance Requirements: Specific compliance requirements and certificates required

8. Schedule 8 - Required Reports and Documentation: Templates and requirements for regular reporting

9. Appendix A - Insurance Requirements: Details of required insurance coverage and certificates

10. Appendix B - Form of Bank Guarantee: Standard format for any required bank guarantees or security deposits

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

Jurisdiction

India

Publisher

Genie AI

Document Type

Service Agreement

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Manufacturing

Information Technology

Healthcare

Construction

Energy

Telecommunications

Automotive

Retail

Public Sector

Infrastructure

Defense

Pharmaceuticals

Education

Transportation

Logistics

Relevant Teams

Procurement

Legal

Supply Chain

Operations

Finance

Compliance

Risk Management

Vendor Management

Commercial

Project Management

Contract Administration

Strategic Sourcing

Relevant Roles

Procurement Manager

Supply Chain Director

Chief Procurement Officer

Contracts Manager

Legal Counsel

Commercial Director

Vendor Management Specialist

Category Manager

Sourcing Manager

Operations Director

Finance Manager

Compliance Officer

Project Manager

Purchase Officer

Supply Chain Analyst

Chief Financial Officer

Risk Manager

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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