On 10 June 2026, members of Keating Chambers hosted a PFI Masterclass in London.
Through a series of panel discussions our speakers shared practical insights drawn from their extensive experience across a breadth of PFI projects.
A summary of each session and the available slides can be found below:
Introductory Keynote: The PFI Expiry and Handback Landscape
Samuel Townend KC opened the Keating Chambers PFI Masterclass by setting the policy and practical context for the expiry and handback of PFI contracts. He noted that, while PFI was launched in 1992 and expanded significantly under the New Labour Government, new PFI awards ceased in 2018 and many of the approximately 700 existing contracts are now approaching expiry. With around 200 contracts due to expire by 2030, the sector faces a significant period of transition, involving public infrastructure assets worth approximately £60 billion and long-term future costs substantially exceeding that figure.
Sam highlighted the legal, financial and operational challenges arising from expiry, particularly where older contracts contain limited or ambiguous handback provisions. Drawing on reports from the National Audit Office, Public Accounts Committee, Infrastructure and Projects Authority and wider industry commentary, Sam reflected on concerns around asset condition, unclear party obligations, dispute resolution mechanisms and the increasing risk of disputes as projects enter their final phase. Against that background, he emphasised the importance of early planning, clear enforcement and specialist legal support as public authorities, Project Cos, funders and FM contractors navigate the complex final years of PFI projects.
Defects & Physical Condition: Tom Owen KC, Charlie Thompson and Edmund Crawley
Tom Owen KC, Charlie Thompson and Edmund Crawley held a lively discussion of defects and physical condition. A central feature and source of many PFI disputes, the panel examined the key practical aspects of Unavailability Deductions, Performance Point Deductions, and other rights and remedies across live, distressed and terminated projects. The panel discussed how to formulate and defend claims for relief, how to prepare evidentially, and how best to navigate and prevail when in dispute. Together with handback, maintenance and lifecycle, limitation, and the role of consultants and experts, this practical session prompted engaging questions and observations from the room.
Termination & Insolvency: Sarah Hannaford KC, Sean Wilken KC and Lars Gladhaug
Sarah Hannaford KC, Sean Wilken KC, and Lars Gladhaug examined the linked questions of PFI termination, procurement, insolvency, and what comes next. Lars opened on insolvency, walking through the typical PFI project structure and the risks of project-company distress that have surfaced as the existing estate ages. Sean then turned to New PFI, tracing the policy arc from PFI's 1992 launch through the 2018-2024 claims period and into the government's mid-2024 announcement of a revived programme, including 120 Neighbourhood Health Centres by 2030 with another 230 to follow, the prospect of unstitching or reusing LIFT assets, possible financing models (MIM, RAB, NPD, or continuing with an FM contractor), and live legal issues such as Braganza, good faith, and collateral challenges. Sarah closed on termination and procurement, unpacking the lengthy contractual code covering contractor default (material breach, abandonment, performance points, persistent breach), authority default and voluntary termination, and the pitfalls of getting termination right; counting days, serving the correct notices, observing rectification periods, notifying funders, and avoiding waiver, before turning to re-procurement under the Procurement Act 2023, the Regulation 72 "safe harbours" for contract changes, and the risk that a substantial variation triggers a fresh procurement.
Dispute Resolution: Alexander Nissen KC, Lucy Garrett KC and Gideon Scott Holland
Alexander Nissen KC, Lucy Garrett KC and Gideon Scott Holland addressed the topic of dispute resolution in the PFI field. They described how PFI disputes are often complex, high-value and document-heavy, with deductions claims in particular requiring a disciplined approach to identifying the contractual assumptions, inputs and categories of issue that really drive the financial outcome. Lucy emphasised the importance of working from the payment mechanism, focusing on points of principle that can unlock wider settlement, and ensuring that tribunals are given a clear route through representative or priority issues. Gideon addressed the latest proposal from NISTA to set up a council of PFI specialists offering mediation and early neutral evaluation, as well as provision of suitably redacted decisions for guidance to the whole industry. Finally, Alexander considered the drafting and enforcement of tiered dispute resolution clauses, drawing on recent case law to underline the need for clear, workable procedures, defined triggers and timetables, and careful thought about whether courts will stay proceedings where contractual dispute resolution steps have not been followed.
