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DH standard form of project agreement

  • Last modified date:
    12 March 2007
The standard form of project agreement for PFI schemes in the NHS was first published in December 1999. It has subsequently been revised and the current Version 3, published in August 2003, is available from the links below. Also available for download are copies of standard form 3 showing the changes from Version 2 together with all of the unchanged schedules and clean copies of those schedules that are new or have been amended.

There are also two variants of Clause 30 (TUPE and Employment Matters):

  • one of which is to be used for schemes where the retention of employment model (RoE) does not apply but there are staff transfers, for example, where soft services are excluded
  • one to be used where there are no staff transfers.

There is also a plain English summary of the standard form of contract produced in July 2002.

There has been a subsequent amendment to standard form 3 in July 2004 and Feb 2006 to reflect agreed amendments some of which are necessary to implement the revised Treasury Guidance on the Standardisation of PFI Contracts (published April 2004) and the Treasury Guidance on permitted borrowings and senior debt amounts.  There is a download which shows the adaptations needed to standard form 3 to implement these changes.

It should be noted that these amendments have not been incorporated into either the Version 3 project agreement and schedules referred to above.  The schedules affected are Schedule 1 (Definitions and Interpretation),Schedule 6 (Funders Direct Agreement and Schedule 23 (Compensation on Termination).

Other changes and new guidance issued in February 2006 are as follows:-

  • Standard form Early Works Agreement
  • Standard form Independent Tester Agreement (for use in Schedule 15)
  • Changes to the main body of the payment mechanism include a simplified approach to performance failures, whilst retaining the concept of deductions related to whole tariff for unavailability. Further explanatory guidance on the key improvements will be issued shortly.
  • The energy principles paper assists readers in understanding the new energy provisions in the payment mechanism. It includes drafting relating to the Greenhouse Gas Emissions Trading Scheme Regulations 2005. Guidance on these Regulations is available on the DEFRA website.

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