Will the existing workforce be retained or will you need to hire new people? For example, technology experts, programmers and developers, rather than factory line workers?

If you’re planning on retaining the existing workforce:

Consider what changes will be necessary (roles, duties, location), whether TUPE applies and/or whether any redundancies need to be made. You will need to commence consultations with employees in good time and factor this into the project timeline.

You’ll need to commence consultations with employees in good time and factor this into the project timeline – along with ensuring the commercial agreements reflect the employment position.

Have you considered how you might upskill your workforce to operate your new technology? You may want to invest in training or make use of apprenticeship programmes.

If you’re recruiting new employees:

Have you factored in time for recruitment campaigns? Recruitment processes can take time. Particularly if you’re recruiting from overseas (it can take time to secure a visa) and/or if you’re recruiting highly skilled individuals who have lengthy notice periods and/or restrictive covenants.

If you’re considering recruiting specialist individuals from overseas, do you have a sponsor licence and are you familiar with business immigration processes?

Have you considered the Construction Design and Management Regulations and allocated responsibility? Who will design the build and prepare the specification?  Who is going to project manage it day to day and keep things on track? Do you need to access the property whilst construction works are ongoing? What’s the required deadline for completion.

Delays and disputes over payment frequently arise during the course of a construction project. For example with regards to the sum to be paid in each interim valuation. It’s important that the contract documents provide for an adequate mechanism for payment, a clear valuation procedure for changes and additional works, and a dispute resolution mechanism.

Should the worst happen, you may need to participate in formal dispute resolution proceedings such as adjudication or court proceedings. Do your contracts provide adequate protection?

How can your construction contracts protect you? Consider how to appropriately allocate risk between your business and the Building Contractor, for example by way of liquidated damages for delay, a right to augment the Building Contractor’s labour, and/or a right to terminate and appoint a replacement Building Contractor.

What smart-technology are you using? Automated machinery? Artificial intelligence? Augmented realities? Digitised processes? Will the use of new technologies assist you in achieving net-zero? You’ll need to determine whether you’re developing your own smart-technology or procuring it from a third party supplier.

To maintain a market advantage, you’ll need to protect your ideas. The intellectual property created when developing or deploying artificial intelligence or smart machinery must be carefully considered. Design ideas hold value – would you be comfortable freely handing these over to suppliers? You may want to impose strict use restrictions on suppliers or partners, or even take steps to prevent them disclosing the existence of the project altogether using confidentiality agreements.

If the technology for the machinery to be installed already exists, there will be a requirement for an IP licence. If the technology is being designed by you, you’ll need to ensure that you own the rights to that technology.

Consider how the use of smart technology affect your workforce and whether you have the right people with the right skills to develop and/or use the technology.

You’ll need a contract for the construction, supply and installation of the machinery. This may include specialist mechanical and electrical engineering contracts.

Have you chosen your source of funding?

You’ll need to negotiate finance documents (debt or equity). These include property and development funding, asset finance, project finance, subscription arrangements and working capital facilities, amongst others.

You may also need an inter-creditor arrangement, or a deed or priority regulating the priorities and rights of and relationship between different funders.

There may be pre-funding conditions to meet – which may require due diligence reports. A funder will also usually require collateral warranties from the Building Contractor and the consultants who design the build.

What are your existing arrangements with suppliers and service providers? Will you be retaining those relationships, modifying them or terminating them? An examination of existing terms will be required with a view to variation or termination.

What do the employment/TUPE provisions of existing commercial agreements say? You’ll need to consider who is on the hook for litigation risks or employment claims/redundancy costs.

If the business does not have adequate remedies in its contracts procuring underpinning technology, it could find the entire project held up by an IT supplier with no means for recourse or recovering losses.

By not planning properly at the outset for how IT contracts can be transitioned away from, the business may have a long frustrating and expensive experience when later trying to move to a new provider.

Are there any conditions included in new contracts, whereby if they’re not met you’ll be the hook for costs?

Who is responsible for integration between new software and hardware.

Will there be any transitional services agreements in place while transitioning from one service provider to another (or where insourcing is a function)?

It’s important to consider at the outset what the likely energy usage of the factory will be and look at ways of making the building as efficient as possible.

If the building is to have a large, flat roof then consider whether roof top solar and battery storage are options to generate and store all or some of the electricity needed.

Would air source heating be more viable than, say, gas?

Consideration should also be given as to whether any planning permission is required for any renewable technology and, if the property is subject to a lease, whether any amendments to the lease or consents from the landlord are needed.