PPP/PFI Operational Support

Providing operational support to infrastructure projects

We understand the importance of preserving the relationships of the parties as much as possible if the project is to continue successfully.

Since their inception in the 1990’s CMS has been instrumental in structuring and documenting hundreds of PPP and PFI projects across the UK, including, in Scotland, all of the projects procured under the non-profit distributing model (NPDs) and hub DBFM projects across all hub territories as well as all of the projects procured under the mutual investment model in Wales (MIM). We have continued to advise on the majority of these projects throughout the construction and operational phase, giving us unrivalled experience in advising parties on the contractual, legal and commercial issues on long term projects of this nature.

We advise sponsors, lenders, construction and service contractors of all tiers and public sector counterparties on matters including:

• ad hoc contractual queries, performance issues, warning notices and payment disputes;
   
• capital works variations, service variations, equipment replacements and variation protocols (we have developed suites of documents designed to be acceptable to authorities, lenders and financial guarantee providers); 
   
• letters of indemnity, letters of intent, early works agreements and settlement agreements;
   
• finance reporting, consenting, distributions (and lock-up), disputes and default;
   
• prevention or resolution of disputes relating to construction defects, operational issues (service failures and unavailability), liability for deductions, termination and compensation on termination;
   
• refinancing and restructuring distressed PFI assets; 
   
• terminations and claims for termination compensation; and 
   
• handback on project expiry. 

Our project support team works in close collaboration with our dedicated PFI disputes team to help prevent or resolve disputes early. 

We regularly engage with the UK Government, Welsh Government, Scottish Futures Trust, the Infrastructure Projects Authority and other stakeholders in addressing some of issues arising out of operational PPP projects, some of which were the subject of the White Fraiser Report. 

Handback

Our team is one of the first in the UK to have advised on project handback, including on the resolution of disputes that arise due to handback. We also work with clients to consider how end-of-life variations can be managed to future-proof the facility, how variations and handback can provide opportunities to reach net zero and how the parties may choose to document the managed exit.

We have advised Scottish Water on its portfolio of wastewater PFI Projects for over 20 years. Their projects were at the forefront of PFI in the 1990s and are now approaching handback. We advised SW on the handback of one of the first UK PFI Projects to expire in 2022 - and are advising SW on a number of its other upcoming project expiries.