Status of relationshop between Authority and private sector partner
Positive
Assess options
Extended
(including assessment of funding)
Vacate/disposal
Improve service performance/new operator
Efficiencies and leverage payment mechanism
Termination (including vacate)
If the contract is performing satisfactorily, an assessment should be undertaken (see next section) and the option to extend could be explored alongside procurement implications.
While unlikely to be possible for a school or hospital, if may be feasible to dispose of the asset at the end of the PFI or vacate the premises if the asset (and/or services) are no longer required.
Once the PFI expires, there will be greater flexibility to seek a new commercial deal with the current operator as well as receive proposals from potential replacements.
Negative
Assess options
Consideration of scope to further optimise the contract in the period up to expiry.
For projects in distress, termination might be an option to explore in the absence of remedy between the partners.
If the contract is performing satisfactorily, an assessment should be undertaken (see next section) and the option to extend could be explored alongside procurement implications.
While unlikely to be possible for a school or hospital, if may be feasible to dispose of the asset at the end of the PFI or vacate the premises if the asset (and/or services) are no longer required.
Once the PFI expires, there will be greater flexibility to seek a new commercial deal with the current operator as well as receive proposals from potential replacements.
For projects in distress, termination might be an option to explore in the absence of remedy between the partners.
Consideration of scope to further optimise the contract in the period up to expiry.