PFI disputes

We advise and support public sector authorities and service providers with PFI contracts in their portfolios. The National Infrastructure and Service Transformation Authority estimates more than 600 PFI projects will expire between 2025 and 2048, with almost half of these closing in the period between 2032 and 2037. The rising number of contracts reaching their end date increases the risks of disputes between parties.

Where disputes do arise during the contract term or handback process, we provide comprehensive support across all dispute types. We guide our clients through each step of the dispute resolution process and understand the industry-specific challenges across the public and private sectors. Combining our legal and commercial expertise, we help our clients to identify solutions and avoid practical, contractual or reputational risks.

What sets us apart

Public and private sector partners: With a 50:50 public-private sector client base, we work across the full spectrum of PFI stakeholders, including local authorities, central government departments, health commissioners and providers, construction contractors, facilities management providers and funders. This means we understand every perspective in a PFI arrangement and can bridge the gap between public and private sector interests.

Dedicated PPP specialists: Our dedicated team is focused exclusively on PPP work. We have the depth of resource and technical knowledge to handle projects of any scale and complexity.

National reach with local insight: With integrated offices across the UK and Ireland, we combine national capability with local service. Wherever your PFI project is based, you have direct access to experts who understand both the regional context and the national policy landscape.

Integrated, full-service support: From commercial issues to construction, employment, procurement, finance and public law, our fully integrated team brings all this together in one place, reducing the need for multiple advisers and ensuring co-ordinated, efficient and consistent support throughout the lifecycle of your project.

Public private partnership (PPP)

PFI handback and expiry

Guide

Leveraging private finance for public infrastructure: Shaping future PPP models

We support clients with disputes arising from day-to-day performance issues, including failures to meet key performance indicators, inadequate self-monitoring or reporting, and service or maintenance failures.

Sector examples

Healthcare: Facilities management failures affecting clinical capacity, infection control or statutory compliance.
Education: Space unavailability, cleaning or catering shortcomings, and incomplete performance evidence.
Local government: Operational underperformance in civic buildings, street lighting networks or waste facilities. We also assist local authorities where contractors provide incomplete performance data or misapply rectification and relief event provisions.

Advising on all financial disagreements within PFI projects, from payment mechanism disputes and contested deductions to challenges around benchmarking, lifecycle obligations and financial modelling.

Sector examples

Healthcare: Lifecycle underinvestment affecting critical M&E assets and clinical environments.
Education: Deductions linked to failures with contractor availability or maintaining core teaching spaces in schools.
Waste and energy: Disputes over market testing, utilities costs and asset performance outputs.

Our specialists deal with disputes involving variations, including scope, pricing and compliance issues, alongside complex design and construction defects. We also provide guidance on intellectual property rights where ownership, licensing or access becomes a point of contention.

Sector examples

Healthcare: Issues involving plant rooms, fire-stopping, medical gas systems or specialist clinical areas.
Education: Reconfiguration requirements, safeguarding changes, and defects affecting usability or compliance.

Assisting public bodies facing distressed or underperforming PFI arrangements, including contractor instability, SPV distress and insolvency scenarios.

Sector examples

Local government: Disruption in waste, leisure or street lighting PFIs requiring rapid continuity planning.
Healthcare: Insolvency of facilities management or technical contractors providing essential clinical support services.

Advising on TUPE and employment-related disputes arising within PFI service delivery.

Sector examples

Healthcare: Managing NHS-linked workforce obligations and mandatory training issues.
Education: TUPE transfers during contractor change or expiry and workforce grievances linked to performance failings.
Local government: Staffing transitions in leisure, waste and civic building PFIs.

Guidance on the full range of termination scenarios, including no-liquid-market compensation mechanisms and the valuation challenges associated with ending a PFI contract.

Sector examples

Healthcare: Protecting continuity of clinical services during termination.
Education: Assessing asset condition and remediation costs.

Local authority: Termination and distressed project

Acting for Derby City Council and Derbyshire County Council in relation to the termination of the PFI contract which the councils had entered into with an SPV, concerning the design, construction and operation of a waste treatment facility and gasification plant with additional waste management services in Derbyshire.

The SPV failed to reach completion of the waste treatment facility prior to the longstop date as stated in the contract, after which the councils terminated for breach. The SPV sought compensation for a sum in excess of £200 million.

The parties exchanged lengthy (amended) pleadings that dealt with complex technical and factual issues and had also concluded disclosure and the expert joint statement process. The trial was set to commence in June 2024 for 28 days and would have been the first time that this particular form of valuation on termination has been considered by the courts. However, the parties agreed a settlement following a two-day mediation in June 2023.

Local authority: Breach and payment mechanism

Acted for a local authority in a £20m dispute under a street lighting PFI agreement concerning which assets were to be maintained by the SPV. After two adjudications, we advised on the merits of arbitration. The council commenced arbitration in relation to 11 issues. We assembled a large team to prepare the statement of claim, review documents, draft witness evidence, instruct three experts and a forensic accountant, and support leading counsel.

The case carried significant financial and operational implications, especially as many streetlights had never been maintained. The SPV also contended that contractual adjustments amounted to a penalty under the standard form PFI. After a two-day tripartite settlement meeting, we secured a substantial settlement, including repairs, and helped rebuild the council’s commercial relationship with the SPV.

700 +

PFI projects in the UK

56 £bn

private sector investment

76 %

PFI projects delivered on time and 78% completed on budget (National Audit Office)

150

nationally significant infrastructure projects planned by 2029

Banking and finance

Commercial dispute resolution

Construction and engineering dispute resolution

Health and social care disputes

Project finance

Public contracts, projects and funding

Public private partnerships (PPP) and PFI

Project Manager Government department

“Thank you and your team for your work this year, it’s been a pleasure working with you and just to say thank you for the professional and friendly service you provide.”

Finance Manager Local authority

"I just wanted to formally express my thanks for all your excellent guidance over the last two days. The last two days have been some of the most challenging I think I have faced. Thank you for getting us sanely through to an outline deal."

Director of Estates, Facilities and PFI NHS Trust

“I just wanted to drop you a line to say a huge thank you for all your support and advice on our journey to completion and in particular last night when things got a little frantic in requiring actions beyond normal office hours! Your advice and support throughout our journey have been vital and it has been a pleasure to work with you along the way.”