Friday, 17 January 2014

Planning for uncertainty

We've previously highlighted the problems encountered when a procurement takes place on the assumption that planning permission will be granted and then the approval isn't received. Money is wasted as a result of a poor risk management.

Given that history, I would have hoped that there would be a wariness of being too presumptuous of the planning approval process.

So, if you were going to take over one landmark, listed, art deco building which has survived the worse of the Belfast blitz and the bombing campaign of 'The Troubles', you may be cautious of assuming a clean run in the planning approval process. Yet, in Belfast, it is alleged Tesco have started to demolish internal walls of such a building prior to receiving planning approval. I may be risk averse, but to me that is a risk too far unless there is a real business case which demonstrates the expected benefits of earlier completion outweigh the potential costs which will be incurred if approval isn't received.

Tesco are so often held up as exemplary yet they also seem to have a remarkably high percentage of procurements which have not been exemplar.  Is it that they are prepared to sail very close to the wind or are they just caviller?

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