Supporting vital service provision in PFI/PF2 contracts during the COVID-19 emergency
Private Finance Initiative (PFI) contractors should consider themselves to be part of the public sector response to the current COVID-19 emergency.
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This guidance was reviewed on 24 June 2020. Guidance on the Recovery and Transition from COVID-19 has now been published by the Cabinet Office for all contracts, including PFI, in Procurement Policy Note 04/20. The guidance is effective from 1 July 2020. No separate PFI guidance on transitioning from relief will be produced; authorities and contractors should refer to this general guidance for supplements to PPN 02/20 and for the development of transition plans.
This guidance note should be read alongside, and is consistent with, the Cabinet Office Procurement Policy Note - Supplier relief due to COVID-19 and Guidance notes on Model Interim Payment Terms - Procurement Policy Note 02/20.
- PFI contracting counterparties should co-operate to ensure the continued delivery of public services (the COVID-19 emergency is not, and is not to be, regarded as an event of force majeure).
- PFI contractors should ensure contingency plans are up to date and have been reviewed and discussed with contracting authorities to enable continuity of full services as far as possible to respond to the emergency and maintain vital public services, particularly across the NHS.
- Contracting authorities should work closely with PFI contractors to use all available options to maintain public services during the emergency period. This will include maintaining unitary charge payments (enabling PFI contractors to pay their workforce and suppliers), revising contract requirements/standards (including scope changes where necessary) and moderating payment and performance mechanism regimes where appropriate.
Updates to this page
Last updated 25 June 2020 + show all updates
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Update following a review of the guidance
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Publication of FAQs
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First published.