Framework vs non-framework contracts
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Framework vs non-framework contracts

10 February 2022 By Zoe Morgan-Kriek - Category Buyer for ICT at YPO

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During a recent meeting with one of our Multifunctional Devices framework suppliers Ricoh, Zoe Morgan-Kriek, our Category Buyer for ICT met Keith Stevenson the framework manager to discuss the benefits of our customers using a framework.

Framework contracts can provide value to customers in more ways than simply the headline price. In addition to having the support and protection of the framework body, many elements of value have been negotiated into public sector framework contracts, that are not standard in the normal commercial contracts.

Following my meeting with Ricoh they produced this useful table comparing a framework contract with a non-framework contract. Some of these points are applicable to all frameworks, but more specially relating to the Multifunctional Devices framework. The total impact of these differences could be thousands of pounds per device over the life of a contract.

Framework contract

Many non-framework contracts

Simple payment profile – three years means 12 quarterly payments

Possibility of double payments at start or end of agreement

No additional upfront fees, such as documentation fees

Often documentation fees of up to £250

No fee to collect devices at the end of the contract

Device returned at customers expense to lease company nominated location (up to £300 per device)

Pricing is controlled, so leases are operating leases which is the only type schools may sign

No guarantee that it is an operating lease, is the signatory at risk?

Early termination means only balance of rentals (less 10%) paid

Early termination means full balance of rentals paid plus an element of service payments, which could be as much the predicted service spend to the end of the prime contract period. Termination notice may be six months even at end of contract

No minimum quarterly charge for service clicks, billed quarterly in arrears as actual readings

Quarterly minimum charged quarterly in advance

Contract flexibility to allow an element of upgrade/downgrade return without penalty

All changes involve a settlement/upgrade fee

Single contract with supplier

Service contract with supplier, lease contract with 3rd party leasing company

Fixed rental and click rates for contract period

Rentals should be fixed but click rates may rise annually and may not be pegged to RPI, could be 10% or more.

A3 charged at same rate as A4

A3 may be charged as 2 x A4

All mono and colour toner included

Toner may be chargeable, be careful of low coverage limits

Staples included

Staples chargeable

Training included

Various types of training may be chargeable

Connection to network included

Set up on your network may be chargeable

Meter reads submitted automatically by device

Fill in meter card or submit online

Toner ordered automatically by device

Telephone to order toner

 

If you would like to know more about our Multifunctional Devices framework and how YPO can help, please get in touch with the team!

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