Originally Posted by
HEDP
Nutloose,
I don't know the commercial construct of the the new system but if it is a company set up to deliver the contract on behalf of a consortium you will likely find that there are commercial barriers to liability falling back to the parent companies. Ascent probably has insufficient funds behind it to deal with penalties incurred through failing to perform. As a result even if penalties are involved, the penalties might bankrupt the business and, with no plan B, MOD can't afford to bankrupt their only plan.
It has happened before......
Normal commercial practice would be to require either a parent company guarantee or a bond (insurance effectively)adequate to ensure that the job can be done. While transferring to another contractor if needed.
What the MoD does I know not.
N