M&A
November 6, 2023
We have been working for some time with a specialist consultancy who provide feasibility and design services for UK District Heat projects, which provide low carbon heating solutions.
The projects normally involve an overall framework agreement between the public sector client and the prime contractor, who seeks to flow down wholesale its obligations under the framework to its contractors. We work with our client (who is usually a sub-contractor) to pick through and negotiate the obligations that are relevant to it and allocate responsibilities to achieve a fair risk/reward balance.
Various general standard form building contracts are often used that may not be entirely appropriate to our client’s services, so we apply a wider commercial perspective to tailor them. Collateral warranties in favour of numerous stakeholders are often a feature of these projects. It can be forgotten that they sit as onerous separate contracts alongside the framework agreement. We aim to tie them in to the overall liability regime, limits, and scope of obligations that our client has agreed under its main contract with the prime contractor.
