Don’t put PFI contract expiry ‘on the back burner’

Paul Styler, director of Infrastructure Solutions at specialist consultancy, ETL, and and Jackie Heeds, Partner at commercial law firm, Freeths, explore and address some of the common themes that Trusts face with PFI contract expiry, and the additional issues that such organisations need to be aware of – such as the potential to scope and extend the contract, and what steps they can take to minimise disputes.

You may think that it is years before your PFI contract expires, and that preparing for this is something which can be put ‘on the back burner’. Besides, there will be enough challenges with the day-to-day management of the contract which you will inevitably be facing, and in some cases this will already be stretching resources. So, having to consider the delivery of the contract expiry process as well may be a bridge too far. There is no mistaking the fact that that the longer that the contract expiry management process is put off, the greater the potential for issues (which could have been eradicated or minimised from the outset), and yet for Trusts with healthcare PFIs, the lights must remain on, the doors remain open, and frontline services continue, without disruption.

So, you ask, what are the potential issues, and how can these be managed? These vary depending on your project, although there are some common themes in many contracts as they approach expiry. Being open to some of these issues, and putting plans in place to minimise potential risks, are key. Let us consider some of the common themes, and how they may be tackled.