Lenders Advisory Services
Our Construction team provides due diligence services to Lenders for all projects of any size or nature including PFI/PPP.
We provide advice on the suitable insurance requirements to be included for the project, provide commentary on the insurance premiums shown in the financial model and generally assist with completing the insurance clauses and schedules required under the loan documents.
Our service can be provided from bid stage through to preferred bidder or award, financial close and for the term of the loan. We also provide due diligence services for variations and the refinancing of projects or specific assets.
Our service includes the following:
- Highlight particular areas of risk and exposure and comment on the extent to which the insurances match the requirements included in the project documentation.
- Comment on the adequacy and likely availability of the proposed insurances.
- Comment on the treatment of exposures and proposed methods to deal with uninsured exposures such as deductibles and any likely significant policy exclusions.
- Assist the Lenders Legal Advisers draft the appropriate insurance clauses and schedule and conditions precedent for the Loan documentation.
- Review the insurance arrangements proposed by the Project Co and their insurance broker.
- A full report on our findings (including bid reports if required). This is especially valuable not just in reporting on the insurances of the project company and its service contractors/suppliers, but also in ensuring continuity into the operational phase of the project.