The UK government’s Private Finance Initiative—using private finance to fund public sector construction schemes.

Private Finance 2—this was the successor scheme to PFI and is another form of public-private partnership established following consultation in 2012. In 2018 it was announced that PF2 would not longer be used on new projects.

Private Finance Initiative. A government scheme to procure finance and operation (always) and often the design and construction of public sector projects by the private sector.

The Private Finance Initiative (PFI) is a public private partnership model that was introduced in 1992, and was then succeeded by ‘PF2’ in 2012. See Practice Notes: Introduction to PFI and PF2, Key parties in a PFI/PF2 project and PFI structure—diagram. This Practice Note looks primarily at disputes on PFI projects (as opposed to those in relation to PF2), given that there are significantly more PFI projects. In 2018, it was announced that the government would no longer use the PF2 model on new projects. However, existing PFI and PF2 projects will continue to run. As a result of the typical lifespan of such projects (25–30 years), existing projects, and disputes that arise on them, will likely continue for some years to come. The contractual context of PFI disputes It is not uncommon for disputes to arise on PFI projects—the contracts that govern such projects are extensive and the projects themselves are high-value and complex, and involve a number of interested parties. PFI projects broadly consist of three phases—procurement, construction and operation/maintenance (O&M). Disputes may arise in any of these

This Practice Note examines the Construction Sub-contract between Project Co and the Construction Sub-contractor (also referred to as the Construction Contractor) in the context of a PFI or PF2 project. In the 2018 Budget (delivered on 29 October 2018), it was announced that the government will no longer use PFI or 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. Background to the Construction Sub-contract PFI structure—diagram sets out the basic structure of a PFI project. Where the project includes a built asset (as is usually the case), there will be a Construction Sub-contract (also referred to as the ‘Construction Contract’) between the Project Co and the Construction Sub-contractor under which the Construction Sub-contractor will carry out the construction phase of the project (the phase during which the assets are actually built) and prepare it for handover to the public sector body and the subsequent

Abandon Describes a situation where the contractor stops carrying out the works for a prolonged and consecutive period of days (eg 20 business days) or for a longer non-consecutive period of days (eg 60 business days) throughout the life of the project or within a specified period (eg 12 months) and does so wilfully and without a reason. Abandonment is usually classed as a contractor default which would allow the authority to terminate the Project Agreement and/or allow the Project Co to terminate the construction contract. Acceptance Tests Tests undertaken to see if the facility (or other project asset) meets the standards required for the Authority to accept the facility as complete. Access Protocol The protocol which must be adhered to by Project Co in order to gain access to the buildings which form part of the project. For example on a social housing project or a school, certain criteria would need to be met by Project Co before it or its Contractor could access dwellings or the school to undertake repairs or refurbishment. Adjudicator An

Public Private Partnerships (PPPs) continue to play a significant part in UK infrastructure provision, accounting for around 12% of public sector assets. However, their use in new projects has dropped off considerably. 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?). The government has also reconfirmed in its National Infrastructure Strategy of November 2020 that it will not reintroduce the PFI/PF2 model in new infrastructure projects. 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. The Original Private Finance Initiative Model The PPP model known as the Private Finance Initiative (PFI), widely used and promoted by the UK Government from 1997 onwards, underwent a rapid decline in use for new projects from around 2012. Criticised by HM Treasury for its inflexibility, and widely perceived by the general

This Practice Note looks at the standardisation of contracts in relation to PFI and PF2, and considers the practical use of model form contracts. Background The history of model, or standard form, contracts in the PFI context is a long one. Even before the July 1999 publication by HM Treasury of version 1 of 'Standardisation of PFI Contracts', there had been various Technical Notes issued by the Treasury Taskforce for Projects, containing guidance and contract drafting which would later inform a plethora of sector-specific or project-type-specific model project agreements and supporting contracts. Version 1 of Standardisation of PFI Contracts was published largely in response to the second review of PFI undertaken by Sir Malcolm Bates, commissioned on 12 November 1998, which was carried out in tandem with Peter Gershon's review of central government civil procurement. A key theme of Bates's second PFI review was the need to consolidate and strengthen central coordination in PFI procurement, coupled with a need for greater standardisation of contractual terms. The main reasons (albeit not stated in precisely

An updated version of the Productive Finance Working Group (PFWG)’s model long-term asset fund (LTAF) instrument of incorporation and authorised contractual scheme (ACS) co-ownership deed has been published, following confirmation from the Financial Conduct Authority (FCA).

Public Health England (formerly HPA/NRPB)

Law360, London: Primary Health Properties said that its planned £1.79bn takeover of rival NHS landlord Assura PLC has gained foreign direct investment clearance in Ireland, completing the necessary regulatory approval process for the acquisition to go ahead.