Supply Framework Agreement Template for Australia

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Key Requirements PROMPT example:

Supply Framework Agreement

"I need a Supply Framework Agreement for my manufacturing company to source raw materials from multiple Australian suppliers, with specific provisions for quality testing, minimum order quantities, and quarterly price reviews starting from March 2025."

Document background
A Supply Framework Agreement is essential for businesses establishing long-term supply relationships in Australia. This document serves as a master agreement that sets out the overarching terms and conditions governing future supply arrangements, eliminating the need to negotiate individual contracts for each transaction. It is particularly useful for businesses with regular or high-volume supply needs, incorporating Australian legal requirements including those under the Competition and Consumer Act 2010, relevant state laws, and industry-specific regulations. The agreement typically includes mechanisms for ordering, pricing adjustments, quality control, risk management, and dispute resolution, while providing flexibility through schedules that can be updated without amending the main agreement. This type of agreement is commonly used across various industries where consistent, long-term supply arrangements are needed.
Suggested Sections

1. Parties: Identification of the supplier and customer, including ABN/ACN and registered addresses

2. Background: Context of the agreement, relationship between parties, and general intent of the framework arrangement

3. Definitions and Interpretation: Definitions of key terms, interpretation rules, and hierarchy of documents

4. Term and Extension: Initial term of the agreement, extension options, and termination dates

5. Supply Framework: Core mechanics of how supply arrangements will work, including ordering process and acceptance

6. Pricing and Payment: Price determination, payment terms, invoicing requirements, and price review mechanisms

7. Delivery and Acceptance: Delivery requirements, timeframes, acceptance testing, and rejection processes

8. Quality and Compliance: Quality standards, warranties, compliance with laws and standards

9. Risk and Insurance: Risk allocation, required insurance coverage, and liability provisions

10. Intellectual Property: IP ownership, licenses, and protection of pre-existing IP

11. Confidentiality: Protection and handling of confidential information

12. Termination: Termination rights, consequences, and post-termination obligations

13. Dispute Resolution: Process for resolving disputes, including escalation procedures

14. General Provisions: Standard boilerplate clauses including notices, assignment, and governing law

Optional Sections

1. Performance Management: Include when specific KPIs or service levels need to be monitored and managed

2. Security Requirements: Include when supplier needs to provide performance security or parent company guarantees

3. Business Continuity: Include for critical supply arrangements requiring disaster recovery and business continuity plans

4. Environmental Compliance: Include when environmental standards or sustainability requirements are crucial

5. Modern Slavery Compliance: Include when annual spend exceeds modern slavery reporting thresholds

6. Data Protection: Include when personal or sensitive data will be handled by the supplier

7. Anti-Bribery and Corruption: Include for international supply arrangements or high-risk jurisdictions

8. Change of Control: Include when supplier stability is crucial to the supply arrangement

Suggested Schedules

1. Schedule 1 - Goods/Services Description: Detailed specifications of goods/services covered under the framework

2. Schedule 2 - Pricing Schedule: Detailed pricing, including any volume discounts or pricing mechanisms

3. Schedule 3 - Service Levels and KPIs: Performance metrics, measurement methods, and reporting requirements

4. Schedule 4 - Order Form Template: Standard form for placing orders under the framework agreement

5. Schedule 5 - Delivery Requirements: Specific delivery locations, times, and special handling requirements

6. Schedule 6 - Insurance Requirements: Detailed insurance types, coverage amounts, and special requirements

7. Schedule 7 - Approved Subcontractors: List of pre-approved subcontractors and their scope of work

8. Appendix A - Technical Specifications: Detailed technical requirements and standards for goods/services

9. Appendix B - Compliance Requirements: Specific compliance obligations, certifications, and standards

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries

Manufacturing

Retail

Technology

Construction

Mining

Healthcare

Agriculture

Automotive

Energy

Telecommunications

Food and Beverage

Pharmaceutical

Industrial Equipment

Consumer Goods

Professional Services

Relevant Teams

Procurement

Legal

Supply Chain

Operations

Commercial

Risk and Compliance

Finance

Quality Assurance

Logistics

Business Development

Contract Management

Relevant Roles

Procurement Manager

Supply Chain Director

Commercial Manager

Contract Administrator

Legal Counsel

Purchasing Officer

Operations Manager

Category Manager

Vendor Manager

Chief Procurement Officer

Supply Chain Analyst

Commercial Director

Risk Manager

Compliance Officer

Business Development Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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