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Construction Law – PFI/PPP Subcontracts

It is well known that the risks assumed by both Building Contractors and Facilities Management Contractors under the Government\’s Private Finance Initiative are considerably more onerous than those assumed under more conventional forms of procurement. It is therefore critical that Contractors involved in such projects take expert advice to ensure that they fully understand the risks to which they are exposed and do not accept any unintended risks.

It is also important for PFI Contractors to consider the extent to which they wish to pass risk down the supply chain as invariably standard forms of subcontracts do not achieve this without substantial amendment.

The lawyers at MJD Solicitors have significant exposure to PFI and experience of negotiating both Construction and Facilities Management Contracts with the Project Company and also of preparing suites of contracts for use with the supply chain. We also have experience of advising on the array of documents ancillary to PFI arrangements.

Work undertaken includes:

  • PFI Contracts with the Project Co
  • PFI Contracts with the supply chain
  • Interface/Co-operation Agreements
  • Direct Agreements & Collateral Warranties
  • Performance Bonds
  • Parent Company Guarantees
  • Parallel Loan Agreements
  • Operational PFI Disputes

Matthew Dillon, Principal at MJD Solicitors, has significant experience in representing SPV’s and subcontractors on a range of PFI Contracts.  Matthew can be contacted here.