3.21 The terms set out in a PFI contract should generally remain in force throughout the contract period except where both parties agree that particular terms are impractical. Departments should resist any contract variations which may reduce the value for money of the project for the public sector. If, however, a consortium seeks to renegotiate parts of a contract in order to improve its own returns from the project then, as an alternative to rejecting such proposals, departments could reasonably seek a share of any refinancing benefits that may arise. In such circumstances, departments should avoid agreeing to variations to the existing contract before they are certain that the refinancing, and the associated benefits, will definitely be achieved.
3.22 At the time that the Prison Service was negotiating with FPSL over the Fazakerley prison refinancing, it was also involved in parallel negotiations on other contractual issues (paragraphs 1.31 to 1.33). In this case, these other contractual negotiations did not materially affect the value for money of the deal, and so the Prison Service quite reasonably did not seek trade-offs between the two sets of negotiations.