Regardless of your views on the rights or wrongs of PFI contracts, labour's new policy, if implemented, would be fertile ground for Dispute lawyers. Some PFI contracts already contain early termination clauses but reaching agreement on the correct level of compensation will be a challenging process. For those contracts without such a termination provision, public bodies (such as Health and Education) will no doubt be scrutinising the level of performance to see if poor service provides a route to exit.
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