The overall objective of a Commercial Due Diligence (CDD) is to scrutinise a company and its assets’ commercial attractiveness and provide a full overview of its internal and external environments. This is typically prior to an investment decision.
We provide a thorough understanding of a company and its assets’ ability to meet forecasted results, considering the external landscape in which it operates/will operate in. Both the competitive landscape and market share will be taken into consideration. Based on this, an informed decision on whether to proceed can be made.
Acting as an Owner’s Engineer, we provide the prospective owner/buyer with an improved understanding of technical issues allowing informed decisions to be made, such as an investment decision. In this role, we may look into and opine on items such as:
- Main Project Participants
- Risk Register
- Project team
- Project Schedule
- Budget (CAPEX) including contingencies
- Economic Robustness
- Operations Philosophy
- Operations Budget (OPEX)
- Rules, Regulations and Class
Acting as a Lender’s Engineer, we protect the interests of a lender, for example, that HSE requirements are adhered to or that quality of workmanship is in accordance with specifications. This involvement may be in the follow-up of the construction of a single piece of equipment or a complete system or structure. Also, elements such as cost, schedule and project team composition, would typically be included. This role typically extends to other areas such as engineering, construction and commissioning.
Making sure that construction is progressing as intended is key to meeting project objectives, successful handover and final acceptance. Factors such as time, cost and quality must be monitored over time to make sure that no single issue is allowed to develop into a serious one.
During construction monitoring, monthly or bi-monthly progress reports are typically issued to clients, regarding key project milestones and more.