It can be seen that in certain circumstances, especially for non-standard obligations in relation to street lighting a local authority, for example, may want to enter into an agreement to take on additional street lighting and maintenance for a Commuted Sum. There are a number of contractual issues and considerations that need to be carefully thought out to ensure the additional obligations are dovetailed clearly in terms of scope and payment with the existing contractual arrangements. Further, the Commuted Sum should be calculated carefully and clearly to take account of all factors, including the implications of expenditure actually being incurred some time in the future - and how the sum interfaces with the existing underlying contract rates and prices for work items in the area.
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