This practice note examines the construction subcontract between Project Co and the subcontractor (also known as the contractor) in the context of a PFI or PF2 project. The following construction practice note, developed in collaboration with Foot Anstey LLP and revised in collaboration with CMS, provides comprehensive and up-to-date legal information on the following topics: This version of the standard text and guidelines is to be used by public bodies for the design of PF2 contracts. It reflects the new model for awarding contracts for infrastructure and service delivery projects through public-private partnerships and replaces the “PFI contract standardisation” (March 2007 version 4). Overall, these changes to IFPs were welcomed. The standardization of public procurement and the reduction of the tendering time were seen as positive changes, which have reduced costs, and it was generally agreed that it was appropriate to remove some flexible long-term services from PFI contracts. However, there were concerns that changes in project financing would effectively increase costs, including changes in the level of indebtedness and the need for bidders to take into account an element of the State`s own funds. The history of model or standard form contracts in the PFI context is long. Even before the publication by HM Treasury in July 1999 of version 1 of `Standardisation of PFI contracts`, several technical observations were made by the Treasury Task Force for projects, which contained guidelines and contracts which would subsequently include a large number of sectoral or project-specific pilot project agreements and support contracts. PFI projects provide the public sector with access to private sector project management capacities and financing, while financing is not included in the public debt. Since a single supplier is responsible for the supply and operation of the project, it should also ensure better consideration of the total cost of living. This practice note deals with the standardisation of contracts with regard to IFPs and PF2s and discusses the practical use of model contracts. Typically, the construction subcontract is done on a design and construction basis, which means that the subcontractor designs and builds the project (although often with the help of a design consultant or specialized subcontractor directly mandated by the construction contractor) and assumes full cash responsibility on a number of topics. These include the publication of a new approach to Public Private Partnerships and Standardisation of PF2 contracts (December 2012) and guidelines on the evaluation of privately funded projects by the Office of Quality and Price, as well as on the financing, acquisition and management of contracts.
PFI Structure – The diagram is the basic structure of a PFI project. Version 1 of the standardization of PFI contracts was widely published in response to the second revision of the PFI by Sir Malcolm Bates, which took place on the 12th following Peter Gershon`s investigation into central government civil public procurement. . . .