When another business depends on your factory's services
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Identify whether another business relies on services connected with the factory before agreeing how those services will change. The arrangement may involve a neighbouring occupier, a separate company on the site or another property.
Ask the relevant legal, property and technical advisers to establish the actual position. Ownership of equipment, payment of a bill and a right to alter supply are separate questions. This article does not determine any of them.
Prepare the counterparty enquiry
Gather the available agreements and records, then identify the questions each discipline must answer. Do not assume an informal arrangement has no consequences because the original contact has left.
| Question | Evidence or discussion needed |
|---|---|
| Who are the parties? | Correct legal entities, relevant occupiers and authorised contacts |
| What is being provided? | Actual service, known technical information and limits of current knowledge |
| What has been agreed? | Contracts, property documents, correspondence and the adviser's interpretation |
| What does the other business depend on? | Their current activity and the consequences they identify |
| What future arrangement is proposed? | Responsible parties, technical assessment, agreement and timing to establish |
If the other party occupies part of your premises, connect this enquiry to the subtenant or licensee review. Its occupation arrangements and service dependence may need related but separate advice.
Give the enquiry a named coordinator. They bring the right people together but do not replace professional advice or confer authority to act.
Keep the proposed change separate from consent
A factory's closure announcement may tell the neighbour that circumstances are changing. It does not necessarily settle the service arrangement. Record what the other party has actually confirmed and what remains a proposal.
Avoid promising a technical alternative before its feasibility and responsibilities have been assessed. A new meter, route or provider may involve matters outside the business owner's knowledge or control.
Keep the discussion within the authorised utility programme. Separate project teams should not offer different dates or assume someone else has obtained the required agreement.
Define the boundary for contractors
Include the known external dependency in the decommissioning enquiry. Ask the responsible team how it affects assessment, scope and coordination. Do not provide a removal or disconnection instruction based on the enquiry record alone.
If the arrangement remains open when production ends, put it in the continuing-responsibility handover. Name the person who owns the counterparty relationship, who can approve spending and which evidence will close the matter.
Retain the relevant records through the appropriate business process. A future adviser may need to understand both the technical boundary and what each party agreed, including changes made during the closure.
When approaching UK Auction Group about assets, explain any external dependency affecting their proposed release. Keep those items outside an unconditional availability statement until the responsible parties have resolved the applicable questions.
See the manufacturing site closure hub for related decisions.
Sources
This guide is general information and education only. Legal, tax, employment and safety decisions may need a qualified adviser who knows your situation. Read the disclaimer.