Bearing the brunt

Finance

When Standard & Poor’s (S&P) rates a preconstruction infrastructure project, a key consideration is how the sponsors have shifted construction risk from the lenders to the contractor. Also important is whether the contractor can manage the risk – if it cannot, then the risk will probably remain with the lenders.

Construction contracts that provide sufficient penalty and damage payments to ensure the project’s acceptance within the established schedule and budget are characteristic of investment

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