During the procurement process the Authority's project team will have built up a working relationship with the winning bidder, which will become the foundation of its relationship with the Contractor. The Contractor cannot normally transfer the Contract to another party without the prior written consent of the Authority. However it is quite possible that the ownership of the Contractor could change during the Contract resulting in the Authority needing to establish a relationship with new shareholders and potentially a new management team. The Contract will contain provisions relating to this scenario.
The WIDP Contract (Clause 82) obliges the Contractor to notify the Authority as soon as reasonably practicable and in any event within twenty Business Days of a Change in Ownership. It also requires the Contractor to obtain written consent in advance from the Authority (i) for transfers before the first anniversary of the Services Commencement Date (unless as a result of the funders enforcing security over the shares); and (ii) for transfers, at any time, to certain specified categories of undesirable persons.
The Contract Management Manual should highlight the Authority's rights in relation to changes in the shareholdings in, and control over the Contractor, and should set out the management procedures for dealing with the transition from one owner of the Contractor to the next.