PFI Expiry / handback
UK’s portfolio of 700+ PFI projects is approaching expiry - over 150 projects will come to an end within the next decade, requiring NHS Trusts, Local Authorities and other procuring authorities to carefully consider their contractual rights and future options.
The expiry of a PFI project presents complex challenges and a number of opportunities. The public sector needs to ensure that its private sector partners have fully delivered on their contractual commitments to ensure that assets “handed back” are fully compliant to avoid exposing the public sector to future financial liabilities.
Procuring authorities will also need to consider their future needs and preferred delivery methodologies for the service currently provided under PFI arrangements.
We offer practical, commercial advice to assist the public sector through these challenges. We help our clients to:
Our experience includes:
The expiry of a PFI project presents complex challenges and a number of opportunities. The public sector needs to ensure that its private sector partners have fully delivered on their contractual commitments to ensure that assets “handed back” are fully compliant to avoid exposing the public sector to future financial liabilities.
Procuring authorities will also need to consider their future needs and preferred delivery methodologies for the service currently provided under PFI arrangements.
We offer practical, commercial advice to assist the public sector through these challenges. We help our clients to:
- Review contractual expiry provisions and roadmap the handback process;
- Procure pre-handback condition, compliance and validation surveys (either on a unilateral or joint appointment basis), ensuring these are bespoke to the specific requirements of individual projects;
- Develop future service delivery plans and procure service provides / develop in house delivery solutions;
- Manage the transition from the PFI contract to future arrangements (transfer of staff, records, helpdesk/CAFM systems and statutory certification documents);
- Resolve financial liabilities / sums owed by the private sector to the public sector on expiry.
Our experience includes:
- The successful transition of a number of PFI projects back to the public sector through expiry processes /early termination arrangements;
- Procurement of alternative delivery models for hard and soft FM services across a broad range of projects in different sectors; and
- Working alongside the Department of Health & Social Security’s Centre of Best Practice team (CoBP) in designing and delivering a programme of PFI condition, compliance and validation surveys across various Wave 1 PFI projects approaching expiry.