FA (Framework Agreement)

A Framework Agreement (FA) in procurement is an arrangement between two or more parties, wherein the parties agree to certain terms and conditions for future transactions. These transactions can include anything from delivery of goods or services to order placement and payment. By entering into a FA, both parties define the framework that governs their future interactions, eliminating any ambiguities and providing a consistency in business dealings. This can help streamline processes as well improve efficiency through smoother coordination and collaboration.