2.6.1 What are the stages of framework agreements?

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The initial agreements do not themselves create a legally binding contract, call-offs under those arrangements do. It is therefore important for the agreement to set out the terms and conditions of the contractual relationships that will arise from call-offs.  There are two basic steps that need to be followed in order to satisfy the needs of a Contracting Authority through Framework Agreements:

Framework agreements, which contain no contractual commitment on either side for the provision of any particular quantity. Although Framework Agreements involve no commitment to purchase, they commonly specify the terms and conditions of the eventual contract that will apply when goods, works or services are purchased along with the rates that will be charged for that service or the pricing mechanism to be used in order to define the price to be charged.  These agreements are normally concluded using the specific terms included in the Framework Agreement for the award of the call off. Especially in case where more than one potential supplier exists in the Framework Agreement, the call-off can be awarded through a secondary competition.
Call Offs, which incorporate a contractual commitment to purchase a particular volume or value of goods or services. These contracts are normally formed through the placing of a specific purchase order for a quantity of goods or services following the terms set out in the Framework Agreement, under which the call off is made.

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