In today’s project finance and major capital project efforts, lenders and operators alike have expressed frustration at the project not meeting performance expectations. These experiences have led certain stakeholders to focus on shifting risk rather than deploying risk mitigation strategies.
Current Project Challenges
- Poor communication between lenders, project sponsors, project manager, IE and contractors
- Complex projects forecasted with antiquated technology and methodologies
- Reliance on inexperienced professionals and untried resources
- Project cost overruns, schedule delays and incidents with projects not meeting cash flow and DSCR projections
Keys to a Successful Project
- Enhance communication amongst stakeholders by establishing protocol to track project in a timely manner and use state of the art document reporting
- Avoid Surprises by identifying appropriate budget/contingency and schedule risks upfront prior to financing and during construction monitoring
- Depend on experienced technical personnel with know- how and proven track record
- Have a contingency backup plan to accelerate meeting technical parameters
