It is important to review the powers of the contracting agency, as these may be limited by its governing statute. This was a major cause of delay in United Kingdom hospital projects, where it was unclear whether the National Health Service trusts had the necessary power to contract. In this context, statutory bodies have powers and functions regulated by their authorising acts and the Statutory Bodies Financial Arrangements Act 1982, whereas ministers of the Crown have broad powers to contract for matters falling within the normal functions of government, including various commercial activities. As such, no legislation will generally be necessary.
Unless the circumstances of the particular project justify another approach, it is preferable that government bears the risk of being unable to execute the project documents due to limitations on its power.
Generally, enabling legislation will not be required, but in limited circumstances legislation may be needed to authorise a project. Government's likely preferred position is to warrant that it has the power to contract in the circumstances of the project.