So while the formalities of procurement seem to have rushed ahead, the dependent approval processes doesn't appear to have achieved the necessary signed-off. This failure in choreography could now prove costly and embarrassing. A judicial review will now establish what happens next but the key lesson, once again, is don't commit to commercial contracts unless you know you can progress to delivery. Contracts are expensive to exit prior to running their natural term. I am not remotely qualified to provide a legal opinion, but it does appear that those concerned should either have delayed signing, or alternatively included a 'get out of jail free' break clause which would have covered such an eventuality. Either of those routes may have helped but that assume someone would have completed a risk assessment and viewed those as risk mitigation - it looks unlikely that happened too.
Tuesday, 1 October 2013
Procurement needs to be concerned with planning permission risk
So while the formalities of procurement seem to have rushed ahead, the dependent approval processes doesn't appear to have achieved the necessary signed-off. This failure in choreography could now prove costly and embarrassing. A judicial review will now establish what happens next but the key lesson, once again, is don't commit to commercial contracts unless you know you can progress to delivery. Contracts are expensive to exit prior to running their natural term. I am not remotely qualified to provide a legal opinion, but it does appear that those concerned should either have delayed signing, or alternatively included a 'get out of jail free' break clause which would have covered such an eventuality. Either of those routes may have helped but that assume someone would have completed a risk assessment and viewed those as risk mitigation - it looks unlikely that happened too.
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Life after Procurement. -coming soon
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