Stabilising a District Heating Project Following Supplier Default
Client Types Supplier
Life Cycle Stage Contracting & Negotiation
Sectors Energy & Renewables, Utilities
Pain point:
“We’ve inherited a contract that isn’t fit for delivery. How do we renegotiate terms quickly to take control without taking on unacceptable risk?”
See how Clear renegotiated contract terms, stabilised risk and enabled the project to proceed
Commercial Outcome
Secured agreement on revised contract terms, programme plan and commercial arrangements enabling the project to proceed after supplier default
Reduced commercial and delivery risk through clarified responsibilities, RAID governance and contingency planning
Accelerated negotiations using a structured strategy and settlement analysis to minimise further programme delay
Established clear contractual governance and commercial controls to support successful project mobilisation
Situation
A district heating infrastructure contract serving local authority properties had recently been awarded when the original supplier became unable to deliver. The client was asked to assume responsibility for the project at a very early stage, with limited documentation, unclear contractual obligations and a programme already at risk of delay.
Immediate commercial clarity was required to establish workable contract terms, assess delivery risk and enable the project to proceed.
Objectives
Assess the status of the existing project award and delivery obligations
Establish revised contract terms enabling the client to assume delivery responsibility
Review programme, payment structure and critical path to ensure deliverability
Identify and mitigate key commercial and delivery risks
Services
Contract Review and Commercial Assessment
Reviewed the existing contract position, delivery obligations and programme assumptions
Assessed commercial exposure, contractual gaps and delivery risks arising from supplier default
Evaluated programme constraints, dependencies and mobilisation requirements Advised on practical contractual and operational solutions to stabilise the project
Negotiation and Contract Structuring
Developed a structured derogation response supporting revised contract terms Prepared and implemented a negotiation strategy supported by best / worst / settle analysis
Supported negotiation of revised programme sequencing, payment arrangements and delivery responsibilities
Facilitated commercial discussions to accelerate agreement and minimise programme delay
Governance and Risk Management
Produced RAID and RACI governance frameworks to clarify responsibilities and ownership Established governance controls and reporting mechanisms to support delivery assurance
Identified contingency measures and risk mitigation actions across commercial and operational areas
Improved visibility of programme dependencies, risks and decision-making requirements
Programme and Delivery Support
Advised on programme sequencing, critical path activities and mobilisation planning
Supported alignment between commercial, operational and delivery stakeholders
Strengthened project controls and reporting arrangements to support delivery within time and budget constraints
Implemented practical contract management tools and governance processes to support ongoing delivery
Achievements
Achieved agreement on revised contract terms, programme plan and payment arrangements enabling the project to proceed
Clarified delivery responsibilities and governance through structured RAID and RACI frameworks
Reduced commercial and operational risk through revised programme planning and contingency arrangements
Established practical contract management tools and processes to support project delivery within budget and time constraints
We’ve inherited a contract that isn’t fit for delivery. How do we renegotiate terms quickly to take control without taking on unacceptable risk?
