How long can a framework agreement be let for?
A framework agreement can be let for a maximum of four years unless exceptional circumstances apply, in which case, it may be longer. However, exceptional circumstances are unlikely to apply very often. Call-off contracts (contracts for specific goods, services or work let under the framework agreement) may be let for a period in excess of four years in certain circumstances but not in a manner which “restricts or distorts competition” (Regulation 19(12)). This will mean that call-off contracts in excess of four years should only be let if it is normal practice to let such a contract as a result of, for example, the level of capital investment required by the provider. The Office of Government Commerce has stated that in any event a call-off contract should not be let for a period greater than seven years. For more information on framework agreements, see Practice note, Framework Agreements (www.practicallaw.com/4-384-9601).
