Business Contracts – Framework Agreements or Master Services Agreements

Framework Agreements or Master Services Agreements

These are main agreements for long-term supply of goods and/or services often involving multiple suppliers with one customer or vice versa. They are useful in supporting a business’ scaling plans. Your business will become an approved supplier or customer if it enters into a framework agreement with a public body. The benefits of this for your business are many.

Either a framework agreement or a master services agreement acts as an umbrella or an overarching agreement setting out the standard terms in relation to the sale or supply of goods or provision of services under call-off contracts, work orders or sale orders. For instance, a parent company in the private sector may use a master services agreement or a framework agreement which applies to all of its subsidiaries, while the call-off contracts or sale orders may only concern a specific subsidiary that a supplier or customer is directly dealing with.

They are a great way of establishing long term arrangements or long-standing business relationships where the parties are likely to trade on similar goods or services for a period, providing an opportunity for repeat orders for goods and services without entering into a fresh contract each time. They are common in public sectors where public procurement laws apply.

While the benefits are many, these agreements are very complex and carry significant risk so extra care and expertise is required to deal with them. Our experienced team can support you with the contract reviewing, contract drafting and contract negotiation involving framework agreements or master services agreements.

Framework Agreements or Master Services Agreements – Scenarios

When it comes to getting expert legal advice on contracts, no matter what type they are, “dotting the I’s and crossing the T’s” is paramount – getting it right now could save a lot of time, money and inconvenience later. Talk to our expert team today on 0800 088 6004 for a free, confidential, no-obligation initial chat.