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MSC in Construction Management - Supply Chain Management

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Normally a framework agreement does not exceed four years except in some exceptional circumstances (Hebly, 2008). If the agreement places an obligation of purchase, the framework becomes a contract, and thus it is treated as any other agreement and, therefore, the European Union procurement rules apply. On the other side, the framework may not act as a contract but an agreement based on the terms and agreements that would apply to an order during its lifetime. In this case, a contract is made when the order placed as a separate contract. Regulations require that despite the fact that this type of an agreement is usually not an actual contract, the European Union procurement rules apply (Chimia, 2014). In setting up of framework agreements, it is required that a pricing mechanism is established.

The mechanisms are used in pricing particular requirements for call-offs during the period of the agreement. The quality criterion is used to ensure that the materials are provided at a mini competition. The contracting authorities must ensure that their obligations on concerns such as code of practice and sustainability are bet before the award of the contracts. In the notice of OJEU, various considerations are followed.

It should be clear on the award of the framework agreement, identities of all the contracting authorities entitled for the call-off based on the framework are included, and the length of the framework agreement is stated which is usually up to four years except in some unavoidable circumstances. Also, the notice provides the total value of the goods and services for which the call-offs are to be placed (Hebly, 2008). The total valuing is crucial for the providers to weigh themselves on their values that guarantee direct qualification before the mini competition. All the procurement procedures are followed after removal of the contract notice.

Chimia (2014) noted that the procurement procedure involves meeting the conditions by the suppliers, dialogue or competition procedures adherence to the specified rules, selection of the candidate and then award to the winner of the tender. In most cases, it follows that a framework agreement that undergoes all these processes results into the award of a contract rather than a framework agreement. The contracting authorities may consider having single or several providers.

Situations of the kind depend on the nature of service and the

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preview essay on MSC in Construction Management - Supply Chain Management
  • Pages: 24 (6000 words)
  • Document Type: Essay
  • Subject: Management
  • Level: Undergraduate
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