Framework Fees, Valuation and Notices: Procurement Act 2023 Compliance Points

Purpose: Three areas that need to be designed together when establishing a framework: estimated value, supplier fees and transparency notices.

Three areas that need to be designed together when establishing a framework: estimated value, supplier fees and transparency notices. This matters because public procurement decisions are rarely isolated events. A choice made during planning can affect competition, affordability, service quality, supplier behaviour and the ability to manage the contract later. The strongest approach is therefore to use the source guidance as part of an end-to-end commercial process, with clear ownership and evidence rather than as a document that is completed after the key decisions have already been taken.

Quick summary

• The estimated value of a framework is based on the value of all call-off contracts expected to be awarded under it.
• The estimated framework value must be included in the tender notice and framework and should not be exceeded unless a lawful modification is available.
• A framework fee may only be charged to a supplier that has been awarded a call-off contract.
• The fee must be a fixed percentage of the estimated value of the call-off and the percentage cannot change during the framework lifetime.
• The guidance explains that suppliers cannot be charged simply for access to the framework.

What the guidance means in practice

The source material gives several anchors for that process. The estimated value of a framework is based on the value of all call-off contracts expected to be awarded under it. The estimated framework value must be included in the tender notice and framework and should not be exceeded unless a lawful modification is available. A framework fee may only be charged to a supplier that has been awarded a call-off contract. These are not interchangeable statements: some describe statutory or policy requirements and others describe recommended commercial practice. Teams should identify which category each requirement falls into, apply it to the organisation and procurement in scope, and keep a record of the judgement. Where guidance from 2021 or 2023 predates the Procurement Act 2023, its commercial principles can remain useful, but current legislation, regulations and current statutory guidance take precedence on legal process.

The practical value becomes clearer when the remaining guidance is read alongside the project lifecycle. The fee must be a fixed percentage of the estimated value of the call-off and the percentage cannot change during the framework lifetime. The guidance explains that suppliers cannot be charged simply for access to the framework. The Act and regulations require framework-specific information in relevant notices, while call-off contracts have their own notice obligations. In day-to-day terms, this means the buyer should be able to answer three questions at any approval point: what outcome are we trying to achieve, what evidence supports the proposed commercial approach, and what will need to be managed after the decision is made? If those answers are weak, more analysis is normally more useful than adding another layer of narrative to an approval paper.

A practical process to follow

A proportionate process can be built into existing governance. The steps below are deliberately practical. They are not a substitute for the detailed source guidance, legal advice or local standing orders, but they provide a useful structure for a procurement or commercial team.

1. Step 1. Build the estimated value from realistic demand scenarios across all intended users. Record any assumption that could change the conclusion and when it will be reviewed.
2. Step 2. For lots, decide how estimated values will be allocated and monitored. Keep the analysis proportionate to the value, risk, novelty and criticality of the requirement.
3. Step 3. Design any fee or levy before procurement and state it consistently in the framework and notices. Capture the source evidence and name the person accountable for the next decision.
4. Step 4. Track cumulative awards against the estimate through the framework life. Record any assumption that could change the conclusion and when it will be reviewed.
5. Step 5. Create a notice checklist for establishment, reopening where relevant and call-off awards. Keep the analysis proportionate to the value, risk, novelty and criticality of the requirement.
6. Step 6. Escalate early if value or term may need lawful modification. Capture the source evidence and name the person accountable for the next decision.

What good looks like

Good practice is visible in the decision trail, not only in the final document. A reviewer should be able to follow the line from the service need, through market and cost evidence, to the route, evaluation, contract terms and management arrangements. Where several functions contribute, the file should show who owns each decision and where challenge occurred. The same principle applies to handover: useful assumptions, models, KPI definitions, risks, supplier information and approval conditions should move into mobilisation and contract management instead of being left in the sourcing archive. This continuity is particularly important for long-running public services, where staff can change but the organisation remains accountable for the outcome.

Recommendations for procurement teams

The following recommendations are suitable for teams that want to embed the topic into normal ways of working rather than create a parallel compliance process:

• Do not use an artificially low estimate to make the framework appear smaller.
• Explain fee mechanics clearly to both buyers and suppliers.
• Use management information to forecast when estimated value may be approached.
• Keep framework documents and published notice data aligned.
• Separate provider revenue from the buyer value-for-money case.
• Train call-off teams on the notices that remain their responsibility.

Common pitfalls to avoid

The most common problems are usually process failures rather than a lack of templates. Watch particularly for the following:

• Treating framework value as a non-binding aspiration.
• Changing the fee percentage during the term.
• Charging suppliers merely to join or access the framework.
• Assuming the provider publishes every notice required for each buyer.

Easy-to-read takeaway

For framework fees, valuation and notices: procurement act 2023 compliance points, the core discipline is to start early, connect the analysis to a real decision and preserve enough evidence for the next stage of the lifecycle. The source material should help teams make better decisions, not merely produce more paperwork. Before acting on a live procurement, confirm the current version of the Procurement Act 2023, regulations, Procurement Policy Notes and any organisation-specific approvals or delegations. This is especially important for thresholds, notice duties, exemptions and policy requirements that can change over time.

Source basis

Primary source used: Procurement Act 2023 Guidance on Frameworks, November 2024. Related articles in this collection also draw on the other supplied Cabinet Office, HM Treasury and Procurement Act materials where the topics overlap.

This article is general procurement support content. It should be read alongside current legislation, statutory guidance and your organisation’s own governance and legal advice.