Contract and Financial Close Stage

72.  For PFI schemes which have a significant estates element requiring significant planning consent which is fundamental to the success of the project, Detailed Planning Permission should be obtained from the LPA prior to Contract and Financial Close between the MOD and the Preferred Bidder. For PFI schemes which have an insignificant estates element requiring little or no planning consent and that which is required is not fundamental to the success of the project, then Detailed Planning Permission may be obtained from the LPA after Contract and Financial Close between the MOD and the Preferred Bidder, with obtaining planning consent becoming a condition precedent to the Contract.

73.  It is considered that Contract and Financial Close should be scheduled to take place three months after Detailed Planning Permission has been granted by the LPA (to allow for MOD Judicial Review risk, subject to no material planning condition arising).

Close Base Requirements