This clause requires that the contracting party obtain all necessary planning permissions (also called zoning approvals, development permits, or land use authorizations) before commencing work or operations under the contract. Planning permissions are governmental approvals that confirm proposed activities comply with local zoning laws, land use regulations, and development plans. These permissions ensure that the intended use of land or property is compatible with the surrounding area and complies with municipal planning objectives. The clause typically allocates responsibility for obtaining these permissions and may specify timelines, costs, and consequences if permissions cannot be obtained.
This clause is particularly important in construction, real estate development, and commercial operations, where failure to obtain proper planning permission can result in forced cessation of work, demolition of completed structures, significant fines, and legal action by local authorities or neighboring property owners. By including this clause, the principal protects themselves from entering into a contract for work that may ultimately be prohibited or severely restricted by local regulations. The clause also clarifies which party bears the financial and administrative burden of the permitting process.
Ensure this clause clearly specifies that the contractor or responsible party must obtain all required planning permissions before commencing any work, and that the principal has no obligation to proceed if permissions are denied or significantly delayed. Include a timeline for obtaining permissions (e.g., within 60 days) and specify who bears the costs of the permitting process and any required modifications to plans to achieve compliance. Add language allowing the principal to terminate the contract without penalty if permissions cannot be obtained within the specified timeframe. Consider requiring the contractor to provide evidence of planning permission approval before final payment is released.
Frequently Asked Questions
What does this clause mean in simple terms?
This clause requires that the contracting party obtain all necessary planning permissions (also called zoning approvals, development permits, or land use authorizations) before commencing work or operations under the contract.
Why should I care about this clause?
Planning permissions are governmental approvals that confirm proposed activities comply with local zoning laws, land use regulations, and development plans.
What are my options?
These permissions ensure that the intended use of land or property is compatible with the surrounding area and complies with municipal planning objectives.
How does this affect small businesses?
The clause typically allocates responsibility for obtaining these permissions and may specify timelines, costs, and consequences if permissions cannot be obtained.