6.3  Are there any particular issues relating to dispute resolution with the public sector in relation to PFI/PPP arrangements?

The project company may be in dispute with a subcontractor on an issue in a subcontract, which is essentially the same as a dispute between the project company and the authority under the project agreement. The project agreement and subcontract may have different dispute resolution provisions, which could lead to the project company being exposed to different decisions on effectively the same dispute.

Some Scottish standard form contracts allow the consolidation of related disputes, which helps to mitigate the potential mismatch between decisions at project agreement and subcontract level.

In subcontracts, "Equivalent Project Relief" provisions are often used in an attempt to minimise the project company's exposure to different decisions on related disputes at project agreement and subcontract level. See the Midland Expressway Limited case referred to at question 1.5 above, and the England & Wales chapter of this Guide.