As PFI schools will know, their position is complex and, unsurprisingly, the conversion process takes longer. The school will also need specialist legal advice on the PFI documents and the funding arrangements. Commonly, PFI schools may include shared facilities or community use arrangements which can take time to renegotiate.  Early engagement, with the involvement of the DfE finance team, is critical.

There is also the key question of who should pay the PFI contractor’s costs of the conversion process – this is particularly the case with primary school conversions. The parties to the PFI contract remain the local authority and the PFI contractor but local authorities often put forward the argument that it should not have to pay the PFI contractor’s costs because it did not initiate the conversion. Early legal advice is advisable.

Our academies team has extensive experience advising both governing bodies and local authorities on the conversion of PFI schools.

Back to top tips.