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Key definition
PPP definition

What does PPP mean? A public–private partnership (PPP) is a long-term arrangement where a contracting authority engages a private consortium to design, build, finance and operate or maintain public infrastructure or services, with risk and reward allocated by contract. PPP is a descriptive umbrella term, not a distinct legal form; the governing rights arise from the project agreement and the applicable public procurement or concession regimes. PPPs are commonly delivered via a special purpose vehicle (SPV) owned by private sponsors (occasionally with a public share or joint‑venture element), financed on a limited‑recourse project finance basis. Typical features include 20–30 year terms, performance-based payment (unitary/availability...

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UK PFI, PF2 and PPP glossary: contracts, changes, payment mechanisms, FM services, risk allocation, adjudication and handback

Practice notes
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Abandon

Describes a situation where the contractor halts performing the works for an extended, uninterrupted span of days (eg 20 business days) or for a greater aggregate of non-consecutive days (eg 60 business days) across the project’s duration or within a stated timeframe (eg 12 months), doing so wilfully and without justification at any stage of delivery or execution.

Abandonment is ordinarily treated as a contractor default, enabling the Authority to terminate the Project Agreement and/or permitting Project Co to end the construction contract immediately for cause.

Acceptance Tests

Tests carried out to confirm whether the facility (or another project asset) achieves the standards required for the Authority to deem facility complete and accept it.

Access Protocol

The protocol that Project Co must follow in order to obtain access to the buildings forming part of the project at any time during the term.

For instance, on a social housing scheme or a school, prerequisites would have to be satisfied by Project Co before it or its Contractor could enter dwellings or the school to carry out repairs or refurbishment.

Adjudicator

An individual appointed to determine disputes independently.

Disputes are submitted to an adjudicator, who will resolve them within a short period, roughly 28 days only...

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Web page updated on 22/05/2026

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