A principle of PFI contracts is to protect the public sector from poor service delivery. This is achieved through the operation of the payment mechanism. Should a service provided through a PFI contract not meet the standard specified, the authority may make reductions in payments to the contractor in order to create an incentive to improve performance. Where this proves insufficient, it is possible that the PFI provider may be replaced by the funders. If that fails to resolve matters, it is possible for the contract to be terminated by the authority.
The Treasury does not hold information centrally on projects where this has occurred.