PFI/PF2

The Private Finance Initiative, or PFI as it is more usually known, is a public private partnership (PPP) model that was introduced in 1992 by the Conservative government to procure and deliver public infrastructure and services by engaging the private sector in the design, build, finance and operation of them. It was used across a variety of sectors, including for the procurement of schools, hospitals, defence projects, prisons, roads and social housing. It was succeeded by Private Finance 2, usually referred to as ‘PF2’. See Practice Note: Introduction to PFI and PF2.

In the 2018 Budget (delivered on 29 October 2018), it was announced that the government will no longer use PF2 on new projects (see News Analysis: Budget 2018—what does it mean for infrastructure and housebuilding?). However, existing PFI and PF2 projects will continue to run, and given the typical lifespan of such projects this is likely to be for many years.

For a glossary of common PFI and PPP terms, see: PFI/PPP terms (Glossary).

Parties

There

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

Powered by Lexis+®
Latest Construction News

Construction weekly highlights—24 July 2025

This week's edition of Construction weekly highlights includes the Court of Appeal (CoAs)’s decision in relation to NHBC Buildmark Choice policies confirming that the cause of action accrues when the insured party ‘has to pay more’ to complete the building work as a result of contractor insolvency (National House Building Council v Peabody Trust), Construction Leadership Council (CLC) guidance on Building Control Approval Applications for new higher-risk buildings, Ministry of Housing, Communities and Local Government (MHCLG) guidance on the Building Safety Levy, MHCLG’s announcement of legal deadlines for landlords to remediate unsafe cladding in social housing, a Royal Institution of Chartered Surveyors (RICS) consultation on it updated cladding valuation standard, a British Standards Institution (BSI) consultation on a new code of practice for bringing safe construction products to the market, a Technology and Construction Court (TCC) decision enforcing an adjudicator’s decision to award the responding party in the adjudication the notified sum (VMA Services v Project One), a CoA decision providing guidance on "costs directly incurred" in a waste management project agreement (Buckinghamshire Council v FCC Buckinghamshire Ltd), an update on the status of the Planning and Infrastructure Bill together with updated guidance from MHCLG on the same, the National Infrastructure and Service Transformation Authority (NISTA)’s interactive Infrastructure Pipeline tool, and publication of the Welsh Government’s circular on updated building control profession standards and codes.

View Construction by content type :

Popular documents