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What Is a Letter of Commitment?
A confirmation from another business that the supplier may draw on that business's capacity during the contract period.
When is a letter of commitment needed?
When a supplier relies on another company's capacity, such as a parent company's finances or a subcontractor's technical expertise, to meet the qualification requirements.
What must it say?
That the other company will make the relevant resources available for the contract. A general statement of willingness is not enough.
Can the buyer check the other company?
Yes. The company whose capacity is relied on must itself meet the relevant requirements and must not be subject to exclusion grounds.
