PFI Expiry and Handback

Our large team of PFI/PPP experts have a wealth of experience relevant to PFI expiry. We set out some brief examples below.

• Health PFI:  Advised and supported an NHS Trust in respect of the expiry & handback of a pre standard form PFI project, the first PFI project in DHSC’s portfolio to expire.  Our support on this project was shortlisted for the OPPPs 2024 awards in the category of “Best Operational / Handback Support on a project”.
• Education PFI:  Advising a local authority in respect of expiry issues on a PFI schools project involving a number of academies.  Our role includes advising in respect of wider strategy, condition surveys and enforcement.
• Education PFI:  Advising a large voluntary aided school in relation to contractual obligations in relation to asset condition as they approached the expiry of their PFI.  The school has been able to procure some support from the DfE to undertake pre-handback asset condition reports which revealed significant remedial and lifecycle works that needed to be completed prior to expiry and handback. We provided strategic advice to the school as to how to ensure that work required to the assets was undertaken during the term of the PFI contract, including preparation of dispute resolution proceedings.
• Energy from Waste PPP:  Advised the Council on its integrated waste PPP for a number of years. (including on a number of operational disagreements, contract re-negotiation and variations). We advised the Council in relation to amendments to the expiry/handback provisions as part of a complex variation in respect of maintenance, handback and asset conditions (including on the transfer of assets on expiry).  We have also advised on the development of a new procurement strategy/business case for post-PPP services.   
• Social Accommodation PFI: Advising a Council shortly before expiry on claims for outstanding repair works, disrepair claims, the insurance excess relating to subsidence claims and, post-expiry, a claim by Project Co for determination of deductibles. 
• Fire PFI: Advised a Fire Authority in respect of the expiry of its training PFI.  We undertook a contract review and reported to the Authority on the contractual positions, gaps/deficiencies and potential areas to focus on in developing its strategy for expiry and post expiry arrangements. 
• Education PFI:  Advising a large local authority on the forthcoming expiry of a grouped schools PFI project (with 4 schools).  Our advice in respect of expiry and hand back has included:  contract reviews and reporting on expiry obligations, liabilities and key issues; asset compliance issues. 
• Health PFI:  Advising a Health Board in respect of expiry / handback obligations, in addition to other operational aspects.  Our role to date has included: a comprehensive review of the Project Agreement; asset condition requirements; supporting on issues related to the IPS ‘expiry health check’, including negotiating a contract to address certain outstanding issues.
• Health PFI:  Advising an NHS Foundation Trust on the requirements for handback and expiry of the PFI including on a pre standard form PFI Project. Our advice to date has included: contract review; provision of online document storage facility; documenting variations, conforming contracts; advice in respect of condition surveys; assisting in respect of the forthcoming IPA expiry health; advice on data protection and information and governance aspects of expiry; property advise and support on overall strategy (including running workshops with senior team).
• Early Termination:  We have also advised in respect of early termination of a number of projects (including voluntary termination).  Early termination presents a number of issues which are very similar to those that arose on expiry, including asset condition, information and date, employees and future services.  These projects include advising:
  • On the voluntary termination of a social care PFI
  • On the voluntary termination of an education PFI
  • On the voluntary termination of a number of non-PFI FM Agreements on a BSF
  • On the termination of a significant PPP, managing exit arrangements
  • Lenders in respect of the termination of a leisure PFI project
• Replacement stakeholders: Advised on a number of matters dealing with the replacement of equity providers and key subcontractors (including on former Carillion projects).
• Restructuring Variations:  Advised lenders, project companies and contracting authorities on separate significant variations to significantly de-scope and partially terminate projects, transferring back key services and managing related exit arrangements.  These mandates present similar issues to those that arise on expiry and handback.
• Asset condition and compliance:  Advised various stakeholders (including project companies, investors, FM providers, NHS Trusts and local authorities) in respect of building defects in PFI projects including:
  • In relation to fire compartment defects, operation of payment mechanism sanctions and negotiating/managing settlements in a health PFI
  • A local authority on various issues arising from a highways PFI contract, including a >£20 million dispute arising from condition surveys and disputes on the condition indices used on footways and carriageways