If planning consent was not obtained by the Contractor before the Contract was signed there will be provisions in the Contract dealing with scenarios where the first planning application is refused. These should be addressed in some depth in the Contract Management Manual.
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Authorities should notify Defra as soon as it reasonably expects the Contract to terminate for a failure to obtain planning consent. The Authority's ongoing entitlement to WI Credits will be reviewed in the light of the specific circumstances. |
Ultimately if planning consent is not obtained by a specified date (often known as the planning longstop date) there will normally be an option for the Authority to terminate the Contract. The compensation payable in this scenario63 is normally similar to that payable for termination as a result of Force Majeure. However there may be important differences and the Contract Manager should ensure the actual relevant contractual terms are fully understood by the key decision makers in the Authority.
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63 The WIDP Contract makes the Contractor’s entitlement to compensation subject to the Contractor having used All Reasonable Endeavours to secure the necessary planning consent.