PhD Final Thesis April 2013.pdf - Anglia Ruskin Research Online

Thesis Keith Gale 2013non-European examples through the UK courts by relevant case law. Eachprocurement exercise in a discrete procurement situation has to be conducted withoutinfluence that benefits or prevents selection of a supplier reflecting priorperformance. Although such arrangements are often referred to as ‘traditional’ bypractitioners, this can encompass a number of variables within the engagementprocess. In order to distinguish the independence with projects contained within thisstudy, the term discrete is used.1.2.5 Framework agreementA framework agreement is an ‘umbrella agreement’ that sets out principle terms(such as elements of price, quality and scope) under which individual call offcontracts can be made throughout the period of the agreement. The framework is anagreement between a single employer (or several employers grouped together as arecognised organisation) and multiple individual suppliers engaged to provideservices within a specified scope. Characteristics applicable to the frameworkagreement are:• A design phase, which is separated from the construction phase as fordiscrete projects.• A tender process to identify suppliers to a framework.• A ‘mini-competition’ within the framework to select suppliers for a project.• Selection of a supplier to undertake a project follows either a ‘lowest pricewins’ or ‘best aggregation of price and quality’ according to the rules of theframework, including key performance indicators of past performance.• Suppliers are engaged by a framework contract which is separate to thosefor individual projects. A supplier is engaged to a project within this casestudy by a NEC3 Engineering and Construction Contract.• Key performance indicators are used within the framework agreement andcan affect choice of supplier for a project.The framework agreement states how individual call off contracts are managed,selected and organised and defines duties and liabilities of each party to theagreement. There is usually no requirement upon an employer to place a minimumnumber or any value or call off contracts within the agreement. Therefore5