Contracting and Risk Management
Contracts and risks that hold together before FID
A project is financed on its contracts as much as on its plant. An independent specialist reads your contract package and risk register the way a lender would, and shows where risks fall between parties or stay with you.
Where contracting sits in your project
Lenders look at how revenues, supply and construction are tied together. The contracts to review include your offtake agreements, the feedstock supply contracts and the construction and technology contracts examined in the independent technical review.
How the contracting work runs
1. Map. The specialist lists every contract and risk, and who carries each one.
2. Test. Gaps, overlaps and weak clauses are identified against what lenders usually require.
3. Align. Changes are proposed so that risks sit with the party best placed to manage them.
Who carries out the work. An independent specialist from the network I work with, with a background in project contracts and risk management, leads the work, speaks with you directly and presents the results. My part is to introduce the right expert and to connect the findings to your discussions with investors and lenders.
What the contracting work covers
Contract package
A review of key terms across offtake, supply, construction and operation contracts, and how they fit together.
Risk allocation
A clear matrix of who bears which risk, with the residual risks that remain with the project.
Lender requirements
The points banks and DFIs usually challenge, and the changes that make the package financeable.
What you get from the contracting work
- A review of the contract package and its gaps
- A risk allocation matrix
- A list of changes to align with lender requirements
- Negotiation points for each key contract
- A clear risk summary for investors
Is your technical case ready for lenders?
Tell me which contracts are on the table. I will introduce the specialist who can review them.