Over the course of a typical PFI/PPP contract, there are likely to be a number of changes to the prevailing legal landscape that need to be recognised and accounted for between the parties. This is particularly so in the waste sector.
Changes in Law can occur at any time, but are perhaps more likely to occur from the commissioning period, as legislation normally only takes two to three years to come into force.
The Changes in Law provisions are very important for a number of reasons. They are a key element of the risk allocation under the Contract. They will determine whether additional Capital Expenditure and/or other costs and/or the impacts on Third Party Income relating to a Change in Law are passed on to the Authority or absorbed by the Contractor or a Sub-Contractor.