PFI Handback

A number of early PFI projects have already expired and as this decade advances, there will be in a surge in the volume of schemes being handed back to the public sector. This presents a number of challenges for both the public and private sector. Procuring authorities, equity investors and FM contractors should start planning at the earliest opportunity to navigate their way through the process, to mitigate risk and, most importantly, to minimise the risk of disputes.

Early preparation is key in ensuring successful handback. We can help you achieve that by:

• Identifying your options and obligations on expiry
• Advising on the procurement law implications of any rights to extend
• Mapping out the handback process and key milestones
• Detailing any relevant controls under the senior finance documents and how these interface with the process under the project documents
  establishing the assets which are subject to handback and the required handback condition
• Unravelling the impact of variations on handback obligations
• Developing a handback plan for the management of the process
• Proactively managing disputes
• Advising the public sector on its options for the continued management of the facilities, including any reprocurement of services

Why choose our expertise?

Our dedicated PFI handback team brings together expert lawyers who have achieved national recognition across the key skill sets required to successfully manage handback:

• PFI/PPP
• Construction/FM disputes
• Dilapidations claims

Our team has experience of the whole lifecycle of PFI projects, from procurement to commissioning, through the operational phase to termination/expiry. We adopt a proactive and collaborative approach, working with you and your other advisers to control the handback process and to reduce the risk of disputes.

Our experience includes:

• Advising a Project Company on the voluntary termination by the Secretary of State for Health of a healthcare project, including negotiating compensation on termination and the associated settlements with senior lenders and subcontractors
• Advising an SPV engaged on a major transport PPP on its acquisition by the procuring authority in order to bring to an end the outsourcing of the project
• Advising the public sector on the termination of a ‘blue light’ PFI project
  Advising on the lifecycle of PFI projects (including variations, disputes, secondary market transactions, equity restructuring and refinancing)
• Advising on the implications for PFI/PPP projects arising in connection with the Carillion insolvency, including the appointment of replacement D&B and FM contractors
• Advising on payment mechanism disputes