Contracting for Retrofit – (Bio)fuels in Rush

In the public and private sectors contracting for retrofit projects is a great example of when some forward planning and assessment ahead of the procurement and contracting process will be more than worth it in the end.

Retrofit projects often have a number of factors which have to be reflected in any contracts and which should form part of any procurement and selection process for contractors. Firstly, there is specialism and the reality that not all contractors are in a position to take on the requirements that come with retrofit work where there are critical specifications to meet. The ability to fit a PV system is not the same as being able to fit it to the current required standard to achieve eligibility for output payments and design responsibility in these projects is very significant where achieving specifications is essential and the customer is relying on a specialist contractor.

That pressure to achieve compliance can come from funding sources applicable only to this kind of project such as for example the Social Housing Decarbonisation Scheme or its relatives in education and the wider public sector. Aside from specifications there can be timescale and claim scheduling to manage which can result in challenging questions about late completion of retrofit works if the result is that funding for the works is lost. That possibility should be addressed up front and reflected in the contract terms one way or another.

Retrofit projects often come with minimum output requirements in terms of certificated improvements. Project managers should have a well-informed view of where responsibility sits for achieving those objectives. Works delivered correctly to the specified design and which fail to achieve objectives are unsuitable in context but are they defective in the sense required to make the contractor come back and remedy them? Similarly there is always a question of whether configuring systems to go into specific buildings is subject to design responsibility or not. One of the functions of a contract is not to leave questions like that open for later debate and those are risks that can be identified and managed.

Unlike new builds and large-scale refurbishments, retrofit projects often involve occupied buildings and not all contractors are as well-equipped as others to manage that type of project from health and safety of occupiers and visitors down to informing residents, managing their concerns and timetabling works appropriately. The contractor’s plans for dealing with the people affected by the project must be up for scrutiny alongside cost proposals and technical solutions given the potential fall-out for the customer.

Our specialist advisors have experience in a range of retrofit projects and can assist both customers and contractors in getting the right legal arrangements in place at the right time to give projects the best chance of success. Speak to your contact at Forbes if you need our support.