Whilst lenders' support is not committed and may be only subject to very limited desk-top due diligence at ITN, certain elements of a bid will need more scrutiny by the Authority and its advisors if lenders have not been engaged prior to the selection of PB.
Bidders have varying credit standing with lenders. In some contractual structures the protections and contingencies for contractor failure may not always be deemed sufficient by lenders. Equally, the risk apportionment as between sponsors and sub-contractors, or between construction contractors and FM providers may not be attractive to the widest cross section of bidders. Authorities should however be re-assured where the bidders can demonstrate experience of successfully raising finance on similar terms in the same sector in the recent past.