Change protocols in PFI/PF2

The following Construction practice note provides comprehensive and up to date legal information covering:

  • Change protocols in PFI/PF2
  • What is the change protocol?
  • Procurement law implications
  • Types of changes
  • Drafting a change protocol
  • Change protocol process
  • Change protocol consequences
  • Documenting a change

Change protocols in PFI/PF2

IP COMPLETION DAY: The Brexit transition period ended at 11pm on 31 December 2020. At this time (referred to in UK law as ‘IP completion day’), transitional arrangements ended and significant changes began to take effect across the UK’s legal regime. This document contains guidance on subjects impacted by these changes. Before continuing your research, see Practice Note: What does IP completion day mean for Construction?

This Practice Note looks at the change protocol (also known as the change mechanism) typically found in the Project Agreement relating to a PFI or PF2 (sometimes referred to as PFII) project. It considers the purpose of the change protocol, different types of changes, the change process, the consequences of changes and also the procurement law implications.

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, the government has stated that it will continue to support private investment in infrastructure and some of the existing drafting may be relevant in such cases. In addition, 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.

What is the change protocol?

The long duration of PFI and PF2 contracts

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