FINANCE

Don't forget to read the small print

Public/private sector partnerships have the power to drive real change and deliver value for money, but Andrew Lancaster warns councils need to be careful when negotiating increasingly complex contracts.

We all know public/private sector partnerships, when handled correctly, have the power to drive change, develop local communities and provide value for money for taxpayers. However, when negotiating these increasingly complex contracts – the devil is in the detail. 

In a recent dispute between Milton Keynes Council and Viridor Recycling, a vital part of the final contract was incorrect – a result of an administrative error by the council's consultants. The court ruled in favour of the council on the basis that the terms outlined in the supplier's final tender document were legally binding and should have been included. The court ordered rectification of the contract and required Viridor to make backdated payments as well as paying interest and legal costs.

SUBSCRIBE TO CONTINUE READING

Get unlimited access to The MJ with a subscription, plus a weekly copy of The MJ magazine sent directly to you door and inbox.

Subscribe

Full website content includes additional, exclusive commentary and analysis on the issues affecting local government.

Login

Already a subscriber?