{"id":535970,"date":"2026-01-27T12:34:23","date_gmt":"2026-01-27T12:34:23","guid":{"rendered":"https:\/\/www.constructionnews.co.uk\/?p=535970"},"modified":"2026-01-27T12:34:23","modified_gmt":"2026-01-27T12:34:23","slug":"why-contractors-should-take-a-fresh-look-at-ppp","status":"publish","type":"post","link":"https:\/\/www.constructionnews.co.uk\/sections\/long-reads\/opinion\/why-contractors-should-take-a-fresh-look-at-ppp-27-01-2026\/","title":{"rendered":"Why contractors should take a fresh look at PPP"},"content":{"rendered":"<p><b><i>Paul Deverill is head of PFI and PPP strategic advice at consultancy Ridge<\/i><\/b><\/p>\n<p><span style=\"font-weight: 400;\">Deserved or not, public-private partnerships (PPP) often get a bad rap, particularly when they are assumed to be private finance initiatives (PFI) under a new name.\u00a0<\/span><\/p>\n<blockquote><p><span style=\"font-weight: 400;\">\u201cThis is the first time in almost a decade that there has been real political backing to make them happen\u201d<\/span><\/p><\/blockquote>\n<p><span style=\"font-weight: 400;\">No wonder, because it\u2019s when PFI has gone wrong that it has hit the headlines. In December, <\/span><a href=\"https:\/\/www.constructionnews.co.uk\/financial\/schools-pfi-firms-liquidation-to-hit-equans-for-5m-16-12-2025\/\"><i><span style=\"font-weight: 400;\">Construction News<\/span><\/i><span style=\"font-weight: 400;\"> reported that Equans is taking a near-\u00a35m hit <\/span><\/a><span style=\"font-weight: 400;\">following the liquidation of Transform Schools Stoke, the special purpose vehicle set up to build and manage 88 Stoke schools from 2000 to 2025.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But the PPPs put forward to fund many of the new neighbourhood health centres announced by the chancellor in her Autumn Budget will not merely be PFI under a new name. They will use a different model specifically designed to take the best of what has worked well and learn from past mistakes. As such, they are worth a fresh look.\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Projects, pipeline and political will<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">So what makes these new PPPs different? And why should contractors look to get involved?\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Firstly, this is the first time in almost a decade that there has been real political backing to make them happen. These centres are part of a wider government push towards healthcare provided in the community. The Budget set out plans for around 250 neighbourhood health centres, of which 120 are targeted for completion by 2030, and 70 will be newly built. Of the new builds, 80 per cent will be delivered and funded by PPPs.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">That timetable is ambitious, but deliverable. And for contractors, it means there is a visible pipeline, scale, and greater confidence that the schemes will go ahead \u2013 reducing the risk of aborted development time and cost.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Although not formally set out yet, projects are likely to be \u2018batched\u2019 in regions, and contract sizes are likely to be in the tens of millions. There is also talk of a number of tranches that will provide contractors with a pipeline of work and enable investment in people, systems, and local and regional supply chains.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Secondly, the buildings themselves are relatively straightforward, with nothing like the complexity of acute hospitals that in some cases shaped perceptions of the risks of PPP in healthcare. The first tranche of neighbourhood health centres will be designed around primary care, diagnostics and outpatient services. This enables standardised design and easier replication across sites, with a positive impact on the delivery programme.\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Lower risk, local reward<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">While acute hospitals built using PFI tended to be led by tier-one contractors, these health centre PPPs are likely to be led by a development partner, which will then manage the supply chain to deliver them. This lowers the risk profile for contractors, and alters the delivery model, creating opportunity for contractors that engage early \u2013 particularly tier-two firms and those with local knowledge.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The likely delivery model is expected to have similarities to the mutual investment model used in Wales, or NHS LIFT. These combined private finance with a public equity stake and were designed around partnership working.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Together with the scale of the pipeline, this creates space for regional delivery and local benefit. Procurement in regional batches will support stable, familiar delivery teams, deeper working relationships with public clients, and a visible, long-term presence in a place. It will also create better conditions for local employment, apprenticeships and skills development, with social value embedded through continuity of work and long-term relationships.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As such, contractors should not judge this programme solely through the lens of past experience \u2013 this is a new pipeline of work worth tracking closely and engaging with early. Consider your regional strengths, build delivery partnerships and don\u2019t be put off by the historic reputation issues associated with PFI. These PPPs will be a different animal altogether.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Paul Deverill is head of PFI and PPP strategic advice at consultancy Ridge Deserved or not, public-private partnerships (PPP) often get a bad rap, particularly when they are assumed to be private finance initiatives (PFI) under a new name.\u00a0 \u201cThis is the first time in almost a decade that there has been real political backing &#8230;<\/p>\n","protected":false},"author":1,"featured_media":535946,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ep_exclude_from_search":false,"footnotes":""},"categories":[552,567],"tags":[],"class_list":["post-535970","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-financial","category-opinion"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.7 (Yoast SEO v26.7) - 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