ISO 22058:2022
(Main)Construction procurement — Guidance on strategy and tactics
Construction procurement — Guidance on strategy and tactics
This document provides guidance on: a) options for engaging the market in satisfying a client’s need for new or refurbished construction works; b) the development of procurement strategies for one or more projects involving the acquisition of goods, services or any combination thereof, irrespective of complexity, size, duration or life cycle stage; c) the formulation of procurement tactics which enable identified procurement strategies to be effectively implemented. This document is applicable to the private sector, public sector or community organizations. Note A client can be a project owner or an entity within a supply chain which contracts for goods and services.
Marchés de construction — Recommandations en matière de stratégie et de tactique
General Information
Standards Content (Sample)
INTERNATIONAL ISO
STANDARD 22058
First edition
2022-02
Construction procurement —
Guidance on strategy and tactics
Marchés de construction — Recommandations en matière de
stratégie et de tactique
Reference number
© ISO 2022
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ii
Contents Page
Foreword .iv
Introduction .v
1 Scope . 1
2 Normative references . 1
3 Terms and definitions . 1
4 Options for engaging the market for new or refurbished construction works .2
4.1 Concept . 2
4.2 Financing of the project . 4
4.3 Design responsibilities . 5
4.4 Interface management responsibilities . 5
5 Framework for developing a procurement strategy . 6
5.1 General . 6
5.2 Strategic considerations . 7
5.3 Procurement objectives . 8
5.4 Spend, organizational, market and stakeholder analysis. 9
5.4.1 General considerations . 9
5.4.2 Spend analysis . 9
5.4.3 Organizational analysis . 10
5.4.4 Market analysis . 10
5.4.5 Stakeholder analysis . 10
5.5 Packaging strategy . 11
5.5.1 Concept . . 11
5.5.2 Framework or non-framework agreements . 11
5.5.3 Identifying work packages . 11
5.6 Contracting strategy .13
5.6.1 Concept . .13
5.6.2 Standard forms of contract . 13
5.6.3 Selecting a suitable standard form of contract and pricing options .13
5.7 Targeting strategy . 15
5.7.1 Concept . . 15
5.7.2 Key performance indicators . 16
5.8 Selection methods . 18
5.9 Documenting a procurement strategy . 19
6 Tactics .20
6.1 Concept . 20
6.2 Publicity . 20
6.3 Procurement planning and sequencing. 20
6.4 Setting up of procurement documents . 21
6.4.1 General . 21
6.4.2 Tactical variables associated with the process of offer and acceptance . 21
6.4.3 Identification of a suitable standard form of contract . 21
6.4.4 Specific conditions of contract . 23
6.4.5 Approaches to achieve quality . 24
6.4.6 Cost-effective procurement . 24
Annex A (informative) Delivery management concepts and practices .27
Bibliography .32
iii
Foreword
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This document was prepared by Technical Committee ISO/TC 59, Buildings and civil engineering works,
Subcommittee SC 18, Construction procurement.
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iv
Introduction
Procurement is defined in the ISO 10845 series as "the process which creates, manages and fulfils
contracts". Procurement accordingly commences once a need for goods and services or any combination
thereof has been identified and it ends when the goods are received, the services and construction
works are completed, and contracts are closed out. It embraces the concepts of (see ISO 21502):
— planning for procurement when procurement strategies are developed, procurement criteria are
identified and contract specifications are developed;
— the evaluation and selection of a contractor in accordance with selected criteria;
— administering contracts involving the monitoring of contract performance, managing contract
changes and corrections, dealing with claims and ending contracts and closing contracts;
— closing contracts when the contract obligations of the parties have been met or the contract is closed
early in accordance with the termination clauses.
Delivery management is the critical leadership role played by a knowledgeable client to plan, specify,
procure and oversee the delivery of construction works projects resulting in project outcomes.
Procurement yields the necessary resources to deliver projects while delivery management provides
the necessary leadership and oversight management and forms part of the governance or quality
oversight arrangements for construction-related projects.
ISO 10845-1 describes generic procurement processes and establishes generic methods and procedures
for procurements enabling a procurement system to be established within an organization. ISO 10845-4
contains standard conditions for the calling for expressions of interest enabling respondents to be
prequalified to be admitted to a database or be invited to submit tender offers. ISO 10845-3 contains
standard conditions of tender enabling the process of offer and acceptance to be conducted. ISO 10845-2
establishes a uniform format for the compilation of calls for expressions of interest, tender and contract
documents, and the general principles for compiling procurement documents for supply, services and
construction contracts, at both main and subcontract levels.
ISO 10845-1 describes a number of techniques and mechanisms associated with targeted procurement
procedures, all of which are designed to promote the participation of targeted enterprises and targeted
labour in contracts. Key performance indicators (KPIs) relating to the engagement of enterprises, joint
venture partners, local resources and local labour in contracts are needed to implement many of these
procedures. ISO 10845-5 to ISO 10845-8 establish KPIs to measure the outcomes of a contract in relation
to the engagement of target groups, and to establish a target level or performance for a contractor to
achieve or exceed in the performance of a contract.
The ISO 10845 series only addresses parts of the procurement and delivery management system
required for the delivery of construction works projects. It focuses on the characteristics of
procurement processes, methods and procedures and the detail relating thereto, concentrating on the
acquisition phase of procurement i.e. the areas which are commonly of greatest interest to regulators.
The ISO 10845 series introduces the concept of procurement strategy for a particular procurement,
provides a range of methods to solicit tender offers, but falls short of providing definitive guidance on
the development of a procurement strategy and procurement tactics and ignores the funding options
that are available.
There are a number of options relating to how construction works are funded and how design and
interface responsibilities are allocated. There are also options relating to the different types of contracts
that may be entered into during the life cycle of a project, how contractors are to be remunerated, how
secondary objectives are to be promoted through a contract and how the market is to be approached to
solicit tender offers. Such choices impact upon procurement and project outcomes.
This document provides guidance on the development of procurement strategy and the procurement
tactics which are necessary to effectively implement a procurement strategy.
v
Annex A describes basic delivery management principles and practices which can inform decisions
made regarding the options for engaging the market for new or refurbished construction works.
vi
INTERNATIONAL STANDARD ISO 22058:2022(E)
Construction procurement — Guidance on strategy and
tactics
1 Scope
This document provides guidance on:
a) options for engaging the market in satisfying a client’s need for new or refurbished construction
works;
b) the development of procurement strategies for one or more projects involving the acquisition of
goods, services or any combination thereof, irrespective of complexity, size, duration or life cycle
stage;
c) the formulation of procurement tactics which enable identified procurement strategies to be
effectively implemented.
This document is applicable to the private sector, public sector or community organizations.
Note A client can be a project owner or an entity within a supply chain which contracts for goods and
services.
2 Normative references
There are no normative references in this document.
3 Terms and definitions
For the purposes of this document, the following terms and definitions apply.
ISO and IEC maintain terminology databases for use in standardization at the following addresses:
— ISO Online browsing platform: available at https:// www .iso .org/ obp
— IEC Electropedia: available at https:// www .electropedia .org/
3.1
construction works
everything that is constructed or results from construction operations
[SOURCE: ISO 6707-1:2020, 3.1.1.1, modified — The US preferred term and notes to entry have been
removed.]
3.2
framework agreement
agreement between a client and a contractor, the purpose of which is to establish the terms governing
orders (3.3) to be awarded during a given period, in particular with regard to price and, where
appropriate, the quantity envisaged
[SOURCE: ISO 10845-1:2020, 3.17, modified — "employer" has been replaced by "client".]
3.3
order
instruction to supply goods, carry out construction works (3.1) and/or provide services under a
framework agreement (3.2)
[SOURCE: ISO 10845-1:2020, 3.20]
3.4
secondary procurement policy
procurement policy that promotes objectives additional to those associated with the immediate
objective of the procurement itself
[SOURCE: ISO 10845-1:2020, 3.30]
3.5
stakeholder
person, group or organization that has interests in, or can affect, be affected by, or perceive itself to be
affected by, any aspect of the project
[SOURCE: ISO 21500:2021, 3.18, modified — "programme or portfolio" at the end of the definition has
been removed.]
3.6
value for money
optimal use of resources to achieve intended project outcomes
Note 1 to entry: Optimal use of resources results in the most desirable possible outcomes given expressed or
implied restrictions or constraints.
[SOURCE: ISO 10845-1:2020, 3.40]
4 Options for engaging the market for new or refurbished construction works
4.1 Concept
A client, where new or refurbished construction works is required, needs to answer basic questions
relating to (see Figure 1):
— the financing of the project on a “buy” or “make” basis (see 4.2), and
— if the decision is to “make”, whether or not design responsibilities (see 4.3) and / or responsibilities
for the management of interfaces between direct contracts (see 4.4) are to be retained or transferred.
This is an important decision as the choice of “buy” or “make” determines the number of contracts that
need to be procured and directly overseen as well as the capacity and capabilities of the client delivery
management team which needs to be put in place to oversee the delivery of the required construction
works (see Annex A). It also informs the procurement strategies that are adopted (see Clause 5).
It may be necessary to perform certain feasibility studies and financial exercises including commercial,
economic and fiscal feasibility prior to a contract being concluded. Strategies such as early contractor
involvement, or where the other party to the contract is likely to subcontract most of the works, early
supply chain involvement, may need to be pursued. It may also be important to engage in strategic
collaboration to embed economic, social and environmental value and align expectations regarding
practices such as those relating to health and safety and employment.
NOTE Clients appoint their own personnel or contract professional service providers to perform their
allocated design and interface management responsibilities in the delivery process.
Figure 1 — Common options for engaging the market for new or refurbished construction
works (“buy” or “make” decisions)
NOTE A structured approach has been developed in this document to deal with decisions and descriptions
of procurement approaches. Rather than focusing on contracting methods, the distinguishing features of each
have been identified in a way that leads to the answering of the six underlying questions relating to the following
which explain how any specific project is being procured:
— source of funding e.g. owner-financed, public sector-financed, developer-financed, PFI, PPP;
— selection method e.g. negotiation, partnering, frameworks, selective competition, open competition;
— responsibility for design e.g. architect, engineer, contractor, in-house design teams, supplier;
— responsibility for co-ordination e.g. client, lead designer, principal contractor, joint venture, construction
manager;
— price basis e.g. work and materials defined by bills of quantity, cost reimbursement, whole building, a fully-
maintained facility, performance;
— supply chain integration e.g. single-source, integrated, fragmented, competitive, collaborative.
These questions derive from the differences between historical contracting methods and provide a basis for a
systematic approach to the procurement strategy for future projects that will remain contextual despite new
terms for different approaches being coined.
4.2 Financing of the project
It is possible that the source of funding is not an option as it can be a matter of policy or regulation for
any given client.
The financing of the project on a “buy” basis requires the market to pay for the acquisition incrementally
as the client pays only for completed work. Under this financing mechanism, the developer typically
carries the cost of providing the required construction works and commonly receives payment either
in the form of a lump sum, a monthly amount for the term of the contract or a percentage of the income
stream following the completion of the project. The options commonly available to the client where the
market funds the acquisition are indicated in Table 1.
Table 1 — Options where the client requires the market to fund the acquisition
Client requirements Options available to the client
Purchase completed construction works
Enter into a public private partnership or a private finance
initiative agreement
Client requires ownership
Establish a joint venture
Enter into a lease to own agreement
Contract on a design, build and operate basis
Client does not require ownership
Enter into a lease for construction works
The parties to the contract can agree to share skills, technology and responsibility and transfer risks.
Partnership arrangements can take on different forms to address issues such as spreading the cost
of investment over the lifetime of the construction projects, greater predictability over cost and time,
lowering of procurement costs, flexibility of programme delivery, performance incentives, potential to
be off-balance sheet, ability of public sector to retain influence over strategic decisions, potential for
continuous improvement through successive phases of work and early commercial input from private
sector parties. Public sector partnering arrangements vary with the level of involvement and risk
that the private entity holds in the arrangement with the public entity and how projects are financed.
Partnership arrangements can range from simple collaboration to mitigate risks to the transfer of risks
to the private party to the extent that this party puts its own capital at risk by funding its investment
in the project with debt and shareholder equity. Partnership arrangements may also include the setting
up of joint ventures to deliver specific projects, payment based on successful delivery, transferring
of institutional function to the private party and permitting the private party to make use of public
property.
The client’s involvement in the delivery management of a project where the market funds the project is
generally limited (see Annex A). In procurements of this kind, a client may need to appoint a transaction
advisor as the other party to the contract oversees or has already overseen the delivery of the project.
A client nevertheless needs to undertake a procurement process or negotiate a contract to acquire the
outcomes associated with the selected project delivery route. Furthermore, clients need to source some
professional capacity to ensure that due diligence is undertaken at an appropriate level to confirm that
the requirements of the contract are delivered in accordance with the terms of the contract.
The financing of the project on a “make” basis, on the other hand, requires the client to directly pay
all contractors for the goods and services associated with the delivery of the project incrementally as
the works proceeds. It also requires that the client play an active role in the delivery of the project as
indicated in Annex A and to make decisions regarding the allocation of design and interface management
responsibilities between the parties to a construction contract. A client needs to appoint professional
service providers to undertake design and interface management responsibilities which it has retained,
where it lacks in-house professional expertise to assume these responsibilities. Accordingly, decisions
made regarding responsibilities for design and interface management determine the nature and
number of professional service agreements that are entered into.
Strategies and tactics appropriate to the selected option to engage the market need to be adopted to
attain desired outcomes.
4.3 Design responsibilities
A client can retain design responsibility, in which case the contractor undertakes construction on the
basis of production information issued by the client (design-by-client strategy). Alternatively, the client
can assign design responsibility to the contractor in which case the contractor:
— designs the works based on requirements established by the client and constructs it (design-and-
construct strategy) or provides a solution to the client’s requirements and manufactures and installs
the required works or component thereof (design-and-supply strategy); or
— completes the production information based on a scheme design provided by the client and
constructs it (develop-and-construct strategy).
In the design-and-construct and develop-and-construct strategy, a client needs to have a capability to
procure the necessary professional resources to develop the end-of-stage deliverables which form the
basis of the scope of work for a contractor who is assigned design responsibilities. This is also necessary
for the reviewing of the outputs of the contractor for general conformity with the scope of work and
what has been agreed at each stage following the appointment of a contractor. A client may, to obtain
continuity in aspects of the design, novate professional service providers to a contractor as a condition
of contract e.g. mechanical design. (Novation is the substitution of a new contract in place of an old one
or the substitution of one party for another party in a contract.)
Table 2 indicates the appropriate usage of strategies involving different allocations of design
responsibilities. The client is at risk for delays in production information where the client retains
design responsibilities. The attractiveness of the assigning of design responsibilities to contractors is
that there is single point responsibility for design and construction which overcomes fragmentation
in design through integration. However, early contractor involvement (the practice of appointing
a contractor before the design is complete) linked to a design-by-client strategy, possibly though a
framework agreement, also enables construction knowledge, experience and inputs to be obtained
earlier than normal to reduce costs, before the price for detailed design and construction is agreed.
There are accordingly several options to achieve design integration and minimize waste through
collaboration between designers and constructors.
4.4 Interface management responsibilities
A client can retain responsibility for managing interfaces between direct contracts in which case the
client is responsible for the planning and managing of all post contract activities for work packages
which have dependencies due to interfaces (construction management strategy). Alternatively, a
client can assign interface responsibilities to a contractor who subcontracts parts of the work (main
contractor strategy) or most of, if not all, the work to others (management contractor strategy).
Table 2 — Appropriate use of strategies involving design responsibilities
Strategy Appropriate usage
Design by Where one or more of the following applies
client
— the client wishes to make significant technical inputs into the design process and design
details,
— the client requires flexibility in the development of the design,
— reasonable certainty in cost and time is required before a commitment to proceed to
construction is made,
— independent design advice is required, or
— the flow of outstanding production information after the formation of the contract can be
tightly managed.
Develop and Where
construct
— the client requires integrated detailed design and construction, based on the client’s design
development report, and single point responsibility,
— standard designs exist which need to be made site specific, or
— the works need to be priced and commence before the production information has been
completed.
Design and Where the client requires
construct
— integrated design and construction and single point responsibility,
— that design risks lie with the contractor in return for price certainty, or
— that the cost and completion date be agreed when a decision to proceed with the project is
made.
5 Framework for developing a procurement strategy
5.1 General
A procurement strategy can be developed for a single project, a programme of projects or a portfolio
of projects where the client funds the acquisition. It identifies the best way of achieving objectives and
value for money for a single contract or a group of contracts linked to a project, while taking into account
risks and constraints. Decisions regarding specific procurement strategies should only be made after
the option to engage the market has been identified.
Different options in a procurement strategy carry different level of risk for the client. No one option
is right for every project. For each situation, there are advantages and disadvantages in the use of any
specific method. The client needs to carefully assess its project requirements, objectives and potential
challenges and find the method that offers the best opportunity for success and achieving its value
proposition (promise of value to be delivered) for the project.
The framework as set out in Figure 2 enables choices to be made and aligned with procurement
objectives in the development of a procurement strategy. The application of the framework can
rationalize the delivery of projects within a programme or portfolio of projects and minimize the
contractual relationships which are entered into. This can be used to address capacity constraints in
spending public sector budgets as it reduces the number of contracts that need to be procured and
managed and tap into the resources of the private sector without compromising objectives.
Figure 2 — Framework for the development of a procurement strategy
The application of the framework can also be applied in support of the delivery culture which the client
wishes to pursue in delivering the project e.g. long-term collaborative relationship.
5.2 Strategic considerations
Procurement strategy is formulated around procurement objectives which may relate to either the
delivery of the product (primary objectives) and what can be promoted through the delivery of the
product (secondary objectives) i.e. broader societal objectives. Procurement strategy is also informed
by spend, organizational, market and stakeholder analyses.
The option to engage the market needs to be decided upon where projects involve the provision,
alteration, refurbishment or rehabilitation of construction works before procurement strategy can be
formulated. Clients need to make decisions which include who funds the acquisition, who owns the
construction works, which party to the contract assumes responsibility for the design of the works and
interface management between contracts (see Clause 4) and how the parties will collaborate to manage
the project.
The components of a procurement strategy for a particular procurement commonly includes the
development of:
— a packaging strategy which focuses on the organization of work into contracts or orders issued in
terms of a framework agreement;
— a contracting strategy which focuses on the selection of a suitable form of contract including the
basis for remunerating contractors, which, if relevant, is informed by decisions made when selecting
the option to engage the market;
— a targeting strategy which identifies the procedures for promoting secondary procurement
objectives;
— a selection method which identifies the methodology by which tenderers are solicited from the
market.
Procurement tactics on the other hand commonly relate to what needs to be done to successfully
implement procurement strategies (see Clause 6).
5.3 Procurement objectives
Procurement strategy is formulated around procurement objectives which can relate to what needs
to be delivered (primary objectives) or promoted in response to broader societal or organizational
aspirations (secondary objectives) through the performance of a contract. Procurement objectives
are informed by the client’s values and value proposition for the project i.e. the promise of measurable
benefits resulting from the project. During the development of a procurement strategy, primary
objectives and secondary procurement objectives focus on what is aimed or strived for in the
performance of a contract and informs choices made.
Primary procurement objectives relating to the delivery of goods or services or any combination
thereof include:
— tangible objectives including:
— budget (cost of the project), schedule (time for completion), quality, and performance
characteristics required from the completed projects (see Figure 3);
— minimizing of disruption to existing users of construction works or the operation of facilities;
— rate of delivery (how quickly portions of the works or a series of projects can be delivered or
funds can be expended);
— environmental, health and safety and maintenance and operational constraints;
— intangible objectives including those relating to:
— buildability (the ease with which the designed works is constructed);
— relationships (e.g. long-term relationships to be developed over repeat projects, early contractor
involvement, integration of design and construction);
— client involvement in the project;
— end user satisfaction.
Secondary procurement objectives commonly relate to the promotion of sustainable development
objectives such as:
— the alleviation and reduction of poverty through the provision of work opportunities to the
vulnerable;
— improving the sustainability of small or local businesses;
— local economic development;
— the establishment and strengthening of indigenous building materials and methods;
— the promotion of construction technologies that increase employment;
— the transfer or development of skills;
— the minimization of the harmful effects of development on the local environment;
— the promotion of increased use of environmentally sound goods, building materials and construction
technologies;
— the reduction of embodied and operational carbon.
Figure 3 — Delivery / schedule, cost / budget and quality / performance triangle
Secondary procurement objectives can also relate to the redefining of business ownership patterns, the
composition of the workforce, the distribution of employment opportunities and work opportunities
for small and medium enterprises (see ISO 10845-1).
Secondary or developmental procurement objectives are additional to those associated with the
immediate objective of the procurement itself. Secondary procurement policy objectives influence
procurement strategies both directly and indirectly.
Primary objectives commonly relate to delivering the product whereas secondary procurement
objectives commonly relate to the delivery process. Competing primary and secondary priorities need
to be balanced. Trade-offs between priorities may be required.
NOTE Procurement objectives relate to that which is aspired to or promoted through the performance of the
contract. Procurement objectives are different to requirements. For example, compliance with legislation is not
an objective but a requirement which can be probed during the evaluation of tenders and confirmed during the
performance of the contract. Legislation establishes minimum requirements for the construction works which
are not necessarily sufficient for the client. Encouraging performance beyond levels of performance prescribed
in law can be an objective.
5.4 Spend, organizational, market and stakeholder analysis
5.4.1 General considerations
A spend, organizational, market and stakeholder analysis provides a backdrop against which all
decisions are made. Accordingly, such analysis should be in sufficient detail to enable informed decisions
to be made, based on identified strengths and weaknesses and the client's appetite for transferring or
accepting risks. Such an analysis should identify what internal skills, capabilities and resources are
available or can be committed by the organization to deliver the project. Use of external expertise may
be required.
5.4.2 Spend analysis
A spend analysis should be based on an infrastructure management plan, which for one or more projects
identifies and prioritizes projects and packages against a forecasted budget and schedule, preferably
over a period of at least three years. This involves, as relevant:
— the clustering of needs in terms of types of output e.g. construct an office block, refurbish a school,
rehabilitate a waste water treatment plant;
— the categorizing of clusters of projects in terms of commonality in relation to the attributes such as:
— nature of work e.g. the construction, rehabilitation, refurbishment, alteration or maintenance
of buildings and or engineering works;
— type of service e.g. construction only, design, construct and operate, construct and maintain;
— unit value e.g. high, medium and low;
— potential for standardization e.g. high, medium and low;
— one-of-a-kind project or repetitive projects;
— time schedule urgency e.g. high, medium, low;
— organizational and managerial complexity in terms of the number of managerial interfaces
or hierarchical layers either within an organization or project structure or stakeholders to be
managed e.g. high, medium, low;
— technical complexity or level of innovation, e.g. high, medium or low;
— the identifying of spatial locations of needs per clustered category;
— identifying needs which may occur simultaneously on the same site or within a region.
The outputs of the spend analysis are spatially located projects in an infrastructure management plan
grouped into categories of spend with common attributes.
5.4.3 Organizational analysis
An organizational analysis involves the identification of the client’s organizational capacity and
capability as being limited, adequate or unlimited in respect of areas such as procurement, project
management, design, construction and manufacturing.
The client’s appetite needs to be tested for issues such as increasing capacity, putting new capabilities
in place, assuming contractual risk, and transferring risk to other parties.
The output of the organizational analysis is a description of the client organizational characteristics
and appetites.
5.4.4 Market analysis
A market analysis identifies at a macro level the available external capability and capacity as being
limited, adequate or unlimited in respect of the various types of construction and professional services
which may be required.
Subcontracting capabilities should also be considered and analysed.
The outputs of the market analysis are descriptions of the market characteristics.
5.4.5 Stakeholder analysis
Stakeholder expectations and interfaces should be identified as they need to be managed within the
project or programme of projects by the client delivery management team (see Annex A).
A stakeholder analysis involves the identification and description of key project stakeholders.
5.5 Packaging strategy
5.5.1 Concept
Projects needs to be broken down into one or more work packages, i.e. a deliverable or project work
component or a group of tasks within a work breakdown structure. The work packages can then be
programmed, resourced and managed, and where necessary, procured. Accordingly, a packaging
strategy is the organization of work packages into contracts or orders issued in terms of a framework
agreement over the term of such an agreement.
A supply chain frequently needs to be contracted and mobilized to provide the necessary professional
services, manufacture and supply materials, products, components and assemblies, equipment
and labour to provide the works. Accordingly, a project programme may need to be developed to an
appropriate level of detail for the project’s current level of maturity to ensure that anticipated project
benefits are realized within the required time frames. Such a programme needs to reflect how each
work package affects other work packages and to establish the logical relationships between each work
package.
NOTE Framework agreements allow the client to procure work on an as-instructed (call-off) basis over a set
term without necessarily committing to any amount of work. This can be achieved by issuing orders in terms of
a framework agreement during the term of the contract, i.e. an instruction to provide works, goods or services
within a stated period of time for an agreed price. Framework agreements do not bind a client to make use of
such agreements to meet needs. The market can be approached for goods, services and works whenever better
value in terms of time, cost and quality can be obtained. Framework agreements enable lessons learned in one
order to be taken to the next order and enable a team to work together on an integrated approach over a period of
time. They also enable performance, including that of promoting secondary objectives, to be improved upon over
time.
5.5.2 Framework or
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