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Under the UK Procurement Act 2023, a framework gives contractors a route to future public contracts; it does not normally guarantee that any work will be awarded. A fee can be charged only when a supplier is awarded a call-off contract, and only on the terms disclosed in the framework and the relevant tender or transparency notice. A multi-supplier call-off will usually require a competition, unless the framework lawfully provides for direct selection through a stated objective mechanism.
The practical rule is simple: read the framework before pricing. Confirm the governing regime and dates, eligible authorities, scope and lot, term, call-off process, award criteria, pricing method, delivery requirements and any fee. The Cabinet Office Frameworks guidance was updated on 13 July 2026, but framework-specific terms still control the opportunity in front of you.
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What a framework gives you—and what it does not
Section 45 of the Procurement Act 2023 defines a framework as a contract between a contracting authority and one or more suppliers that provides for future contract awards. The later contracts are called call-offs. Joining the framework therefore gives your business eligibility to compete for, or be selected for, those later contracts; it is not itself an order for construction work.
Most frameworks do not commit the authority to make a call-off. A particular framework may contain a commitment, but you must find that obligation in its own terms rather than assume that admission creates a pipeline of work. Budget, scope, call-off timing and the authority’s stated requirements remain relevant to whether any opportunity appears.
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This article addresses the Procurement Act 2023 regime. A live procurement may instead be governed by a legacy arrangement or transitional rules, depending on its dates and documents. Before relying on the explanation below, identify the regime, the framework publication date, the call-off date and the contracting authority’s stated legal basis.
Framework fees: the charge is tied to an awarded call-off
What section 45(7) permits
For an Act-governed framework, section 45(7) permits a fee expressed as a fixed percentage of the estimated value of a contract awarded to the supplier under that framework. The Cabinet Office guidance explains that “fixed” means the percentage cannot change during the framework’s lifetime.
The fee is not an admission price. Guidance states that a supplier may be charged only when it is awarded a call-off. An authority cannot charge simply because your company wants access to the framework, and it cannot impose a supplier charge merely for managing the framework.
Where the fee must appear
The framework must disclose the fee particulars, and the relevant tender or transparency notice must also contain them. Look for the percentage, the value to which it applies, the payment trigger, the due date, invoicing arrangements and any treatment of variations, extensions or options. If the documents do not clearly disclose a proposed charge, ask the authority to identify its legal and contractual basis before you price.
There is no established standard percentage
The official material reviewed does not establish a typical market-wide rate. Do not insert a presumed “normal” percentage into your margin model. Use the exact rate and calculation basis in the framework documents. If the rate is described as a percentage of estimated contract value, check whether the documents define that value by reference to the initial term, options, extensions, tax treatment or another measure.
| Fee question | What to verify in the documents | Why it matters to your bid |
|---|---|---|
| Does a fee exist? | A clause in the framework and the relevant tender or transparency notice | An undisclosed or access-only charge is not the same as the permitted call-off fee |
| What is the rate? | The fixed percentage and confirmation that it cannot change during the framework term | The rate reduces the amount you retain from an awarded call-off |
| What value is used? | The stated estimated contract value and treatment of options, extensions and changes | A percentage applied to a broader value produces a larger liability |
| When is it payable? | Payment trigger, invoice process and due date | Cash-flow planning depends on when the obligation crystallises |
| Who pays? | The supplier obligation and any allocation of responsibility in the call-off | Do not assume the authority absorbs the fee |
Document checks to complete before pricing
Use this sequence for every framework opportunity, whether you are bidding for a place on the framework or responding to a later call-off.
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- Identify the governing regime and dates. Confirm that the Procurement Act 2023 applies and check for any legacy or transitional arrangement. The title of an opportunity alone does not settle that question.
- Confirm the authority’s eligibility. Check that the contracting authority is entitled to use the framework. When an authority uses another authority’s framework, Cabinet Office guidance expects it to check that point; it is also a useful supplier-side validity check.
- Match the requirement to the scope and lot. Read the goods, services or works description, exclusions, geographical limits, value bands and lot boundaries. A public body cannot use a framework outside the scope its documents support.
- Check the term and any extension basis. Record the start and end dates, any stated limit and the conditions for an extension. A call-off must fit within the framework’s permitted period and terms.
- Locate the call-off selection process. Determine whether the framework requires a competitive selection process or permits a direct award under a specified mechanism. Do not infer the route from what the authority did on a previous project.
- Record the commercial model. Find the call-off price or pricing mechanism, indexation rules, payment provisions, quantities, milestones and delivery requirements. Make sure they are consistent with the framework rather than introducing an unapproved commercial structure.
- Locate and model the fee. Note the fixed percentage, its calculation base and payment terms. Build it into overhead, margin and cash-flow calculations before deciding whether to bid.
How a competed call-off or mini-competition works
“The selection process for awarding call-off contracts must be set out in the framework.” — Cabinet Office, Guidance: Frameworks, updated 13 July 2026.
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1. Read the competition instructions as a framework document
Check which framework suppliers are invited, whether the competition covers one lot or several, the contract form, site or delivery assumptions, clarification deadline, submission channel, validity period and any limits on subcontracting or consortium arrangements. Record every mandatory response and page or file restriction before drafting.
2. Map the award criteria to your evidence
The assessment may use some or all of the criteria used to award the framework, and those criteria may be refined. A refinement should help assess the particular requirement; it does not allow the authority to replace the framework’s award basis with unrelated tests.
Create a response matrix showing each criterion, the requested evidence, the person responsible and the document or project example that proves it. Distinguish scored quality answers from pass/fail requirements and from information needed only for contract mobilisation.
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3. Check participation conditions
Participation conditions must be proportionate and relate to legal and financial capacity or technical ability, subject to the statutory limits. For a construction call-off, expect evidence such as relevant project capability, competent resources, financial information or required authorisations only where the condition is connected to delivering the contract. Challenge internally any request that appears unrelated, excessive or inconsistent with the framework.
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4. Price against the stated mechanism
Use the pricing template and assumptions supplied in the competition. Separate base costs, inflation or indexation, provisional sums, risk allowances, taxes and the disclosed framework fee. If the fee is calculated on estimated contract value, apply the stated percentage to that value rather than to an informal estimate of your profit.
5. Submit clarifications through the prescribed channel
Ask questions before the deadline and keep the authority’s written answers with your bid file. If an answer changes scope, pricing assumptions or the evaluation method, update the response matrix and obtain an internal approval before submission.
6. Preserve an audit trail
Keep the framework, invitation, clarifications, pricing workbook, approvals, submitted files and any debrief. This record lets you demonstrate that your bid followed the stated process and helps identify whether a fee or selection decision was applied consistently.
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When a call-off can be made without a competition
A framework may permit a direct award only in defined circumstances. The first is a framework with a single supplier. The second is a framework that states the core terms of the call-off and an objective mechanism for choosing the supplier.
Examples of objective mechanisms
Cabinet Office guidance gives examples such as a rotation (sometimes described as a taxi-rank allocation) or selecting the highest-ranked supplier until a stated cap is reached, then moving to the next highest-ranked supplier. These examples illustrate the need for a pre-disclosed, reproducible method. They are not universal rules, and the mechanism written into your framework controls.
Convenience, an informal preference for a familiar contractor or an undocumented decision by an officer is not, by itself, an objective mechanism. Read the framework’s allocation formula, ranking method, caps, exclusions and records requirements. If the authority proposes a direct award that does not match those terms, ask for the legal and contractual basis in writing before committing resources.
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Mini-competition versus direct selection: a practical comparison
| Decision point | Competed call-off | Direct selection |
|---|---|---|
| Is it available? | Where the framework sets a competitive selection process for the call-off | Only where the framework has one supplier or states the required core terms and an objective selection mechanism |
| How is the supplier chosen? | Assessment against the framework award criteria, including permitted refinements | The stated mechanism, such as rotation or ranking subject to a cap |
| Evidence burden | Responses, method statements, pricing and other evidence required by the invitation | Evidence that eligibility and the mechanism’s conditions are met; do not assume a full tender is required |
| Predictability | Depends on published criteria, weightings and competition instructions | Depends on how clearly the allocation mechanism and ranking rules are documented |
| Commercial checks | Call-off price mechanism, delivery terms and any disclosed fee | The same checks, plus confirmation that the selected supplier and value fit the mechanism |
These are practical comparison axes, not a separate statutory scoring test. The framework’s wording remains the starting point.
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Build the fee into the price before submission, but keep it visible as a separate line in your internal model. A simple calculation is:
fee liability = estimated call-off value × the fixed percentage stated in the framework.
Then test the assumptions that feed the estimated value. Ask whether the figure includes the full term, permitted options, extensions, variations or only the initial requirement. Confirm whether the call-off uses a different valuation rule and whether the fee is invoiced at award, during delivery or at another documented trigger.
Do not reduce the fee retrospectively from a margin that has already been approved. If the competition asks for an all-inclusive price, include the fee in that price while retaining the calculation in your working papers. If the authority’s documents use conflicting figures, raise a clarification rather than choosing the more favourable interpretation.
Common mistakes and how to recover
Treating framework admission as guaranteed work
Problem: You invest in capacity on the assumption that call-offs must follow. Recovery: Read the commitment clause and model the framework as an opportunity pipeline unless a binding call-off commitment is expressly stated.
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Assuming every framework fee is an access charge
Problem: You reject a framework because you think an upfront joining fee is mandatory, or you accept an access charge without checking its basis. Recovery: Locate the disclosed call-off fee, rate, value basis and payment terms. A permitted fee is tied to a supplier-awarded call-off, not mere access or management.
Using a previous mini-competition response unchanged
Problem: The new invitation refines criteria, quantities or delivery assumptions. Recovery: Rebuild the response matrix against the current documents and obtain fresh approvals for programme, resources and price.
Missing the distinction between ranking and discretion
Problem: A direct award is described as “best fit” without a reproducible mechanism. Recovery: Ask the authority to identify the framework clause, ranking rule, rotation record or cap that determines selection. Escalate for procurement advice if the proposed route does not match the framework.
Pricing outside the framework scope
Problem: The works, lot, authority or term does not fit the published boundaries. Recovery: Raise the mismatch before bidding and retain the response. Do not rely on a broad description elsewhere in the framework to cure a specific lot or eligibility restriction.
A contractor’s decision checklist
- Have you identified whether the Procurement Act 2023 or a legacy/transitional regime governs?
- Is the authority entitled to use this framework?
- Does the requirement fit the stated scope, lot, geography and value limits?
- Is the framework still within its term, including any stated extension basis?
- Does the framework require a mini-competition or permit a defined direct-selection mechanism?
- For a competition, are the criteria, refinements and participation conditions clear and proportionate?
- Is the fixed fee percentage disclosed in the framework and relevant notice?
- Have you confirmed the fee’s estimated-value basis and payment trigger?
- Does your price follow the prescribed mechanism and include the fee in the right place?
- Have you saved the documents, clarifications, calculations and submission receipt?
What to do if the documents are unclear
Put the question through the framework’s formal clarification route and quote the exact clause or notice entry that creates the uncertainty. Ask the authority to confirm the governing regime, selection route, fee calculation and relevant dates. Keep the answer with the opportunity file and update your bid assumptions.
For a material issue—such as an apparently undisclosed charge, a direct award that does not follow the stated mechanism, or a requirement outside the framework scope—obtain advice from a procurement specialist before bidding or signing. The Procurement Act 2023, the Procurement Regulations 2024, Cabinet Office Frameworks guidance and the Cabinet Office Framework Practice Guide should be checked against the live documents because legislation and guidance can change.
Key takeaway for contractors
A framework is access to a defined route for future call-offs, not a promise of construction work. A framework fee is lawful only when it is the disclosed fixed percentage applied to the stated estimated value of a call-off awarded to you; it is not a charge for joining or for framework administration. For every opportunity, follow the framework’s selection process, price the disclosed fee on the correct basis and retain evidence that the authority, scope, lot, term and call-off route all fit the published terms.
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