The Birmingham Post highlights some pitfalls in the private finance initiative panel's practical guidance publicati...
The Birmingham Post highlights some pitfalls in the private finance initiative panel's practical guidance publication for the construction industry, released last October.
In an advertising feature (p3) produced by Edge and Ellison Solicitors in association with Deloitte and Touche International, a partner for the solicitors says the wording of basic contractual terms in the guide does not resolve the difficulties which beset negotiations of PFI deals with local authorities, and does not include other circumstances beyond the reasonable control of a party.
Adverse circumstances could leave a party with the consequences of that risk, and this could leave contractors bearing the risk of cost and time over-runs irrespective of their ability to manage all factors which impact on time and cost. The feature says that PFI deals have to find an acceptable balance in the allocations of such risks.