Framework agreements under the public sector rules

Framework agreement is an agreement between one or more contracting authorities and one or more economic operators, the purpose of which is to establish the terms governing contracts to be awarded during a given period, in particular with regard to price and, where appropriate, the quantity envisaged. Senate Properties aims to be a reliable partner in all property solutions and services. At best, we consider customer relationships to be like partnerships, flexibly serving clients at all stages of development. This same partnership philosophy is applied to the key suppliers. Senate Properties is a public authority (in the sense of the law of public procurement) and therefore obligated to advertise and award framework agreements in accordance with the regulations' procedure, and among other procedures a contract award notice must be published. . Senate Properties has during last four years made three proper framework agreements in accordance to so called public sector Directive. Besides Senate Properties has already years made arrangements (so called year contracts) which full fill the criteria laid down in the public sector Directive. The first framework agreement with five builder consultants was made in October 2000. The term of this arrangement was only two years, although we knew that it could have been longer up to four years. At that situation there was very little (much less than today) knowledge or experience about this arrangements. That was the reason for such a short term. Besides the competition procedure was new; it was a kind of pilot arrangement. According to the conditions of the agreement Senate Properties had an option to continue the agreement with one more year which option also was used and every contracting party also approved this optional year.For the moment Senate Properties has two valid important framework agreements: - Maintenance framework agreement with 4 enterprises for four years.( The framework agreement was awarded 2001) Today ( May 2004) 80 % of our properties are under this framework agreement. - Builder consultant framework agreement with 5 enterprises (2004) As we can consider Senate Properties has entered into this the framework agreements prior to the new Directive was published.. When the discussion of the importance of the framework agreements in Senate Properties' building functions and maintenance raised (2000) also the law drafting of the Public Sector Directive was in the phase where Senate Properties had opportunity to tell its opinion about the new regulation. The both framework agreement competitions, the first builder consultant framework agreement, and the maintenance framework agreement, were arranged exactly according to the directive proposal. It is an essential question in general to enterprises in the real estate sector to know how to operate with a public entity who is bound by this regulation. We have to keep in mind that the procurement contracts of the entities are in principle subject to the ordinary private law of contract. The legality of the practice of placing contracts through framework agreements has until lately been open to question. Through the new public sector directive (2004) the framework agreements are accepted and the procedure has been legalized.