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ARTICLE · 09 SEPTEMBER 2015

Flexibility For Public Sector Development Agreements?

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Long term contracts including development agreements often require modification to deal with changing circumstances.

United KingdomReal Estate and Construction
Mark Bassett
Mark Bassett
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Long term contracts including development agreements often require modification to deal with changing circumstances.  Despite this, the scope of contract variations is restricted when the agreement has been publicly procured. However, the recent Edenred case (Edenred (UK Group) Ltd v Her Majesty's Treasury & Ors [2015] UKSC) provides useful guidance to those designing projects where change is anticipated and greater flexibility is required.

The Supreme Court in Edenred makes it clear that:

  • Authorities may, in certain circumstances, alter contracts to extend the scope of the goods, works, services to be provided.
  • Includes additional goods, works or services of the same nature and type as those originally procured.

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