PFI and Construction Contracts

Summary: This book examines contracts in the construction industry in relation to the Private Finance Initiative (PFI), such as what distinguishes construction in a PFI environment from a traditional contract. The author analyses the key elements of the construction sub-contract and interface between contractor and operator. The author, David Hickman, is a Partner with a leading international law firm and has worked on many PFI projects. Contents: Construction issues on PFI projects: output specification, project company's solution, design and construction standards, warranties, government regulations, timescales, lifecycle costs, interface between construction/operational phase, design development, performance payment system. Flow down of risks to subcontracts: how risk is flowed down, termination risk, termination issues for the construction subcontractor, warranties, bonds and guarantees. Use and adaptation of standard forms for the construction subcontract: a standard form (JCT 81 or 98), preparation of the contract where a standard form is being adapted, bespoke contracts. Negotiating key elements of construction subcontract: scope of works, liability level, compensation events and relief events, extensions of time, liquidated damages, payments, variations, certification/completion, independent certifier. Collateral agreements. Interface between contractor/operator. Finance/funding: debt finance, subordinated debt, equity, bond finance, key funding issues, the financial model, banks and risk. Insurance: insurance and risk allocation, insurances required by the construction company, who effects these, levels and breadth of insurance, banks and insurance, authority issues, what theconstruction company must do. Post contract-construction phase problems: variations duriHickman, David is the author of 'PFI and Construction Contracts' with ISBN 9781902375335 and ISBN 1902375335.