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PROJECT RISK / MITIGATION - INDEX

CCC International

Wide Geographical Area

Type of Projects

Forms of Contract

Types of Risks

Conclusions / Recommendations

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OUR CCC FAMILY

Consolidated Contractors Company (CCC) a private company, was originally formed in 1952 in Lebanon and has been 63 years in the Construction Industry

CCC, with it’s managing office based in Athens - Greece, currently employs approximately 140,000 people in its worldwide operations

CCC is predominately a major construction company, providing project management, engineering, procurement and construction services to the industry worldwide and ranked 22nd in ENR Top International Contractors (2015)

CCC turnover 5 Billion

Operations in 50 Countries

Projects in hand - 150 worldwide

Total manpower – 140,000

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WIDE GEOGRAPHICAL AREA

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TYPE OF PROJECTS

Oil & Gas

Refineries & Petrochemical

Power & Desalination

Mines & Smelters

Pipelines

Water & Sewage Treatment

Airport & Seaports

Heavy, Civil, Dams, Reservoirs & Distribution Systems

Road Networks

Skyscrapers

Environmental Projects

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FORMS OF CONTRACT

Turnkey EPC Packages

Reimbursable Contracts Convertible to

Lump Sum Turnkey Contracts (CLSTK)

Build / Own / Operate / Transfer (BOO /

BOT / BOOT)

Design / Build with Guaranteed Maximum

Price

Re-measurable

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TYPE OF RISKS

Country Risks

Client / Partner Risks

Contractual / Commercial Risks

Technical Risks

CCC Internal Executive Risks

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COUNTRY RISKS

Political instability / Security

Currency exchange

Cannot import labor/staff

Onerous local content requirements

Lack of reliable Suppliers and Subcontractors

Climate conditions

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CLIENT/PARTNER RISKS

Ability of Client to pay on time

Quality of E&P deliverables

CCC’s ability to influence E&P deliverables

Delays by client on approvals or responses

Teamwork (Client/Partner)

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CONTRACTUAL/COMMERCIAL RISKS

Ambiguous, contradicting or onerous contract

terms and conditions

Scope or split of responsibility is not well defined

Non clarity of the Intermediate and/or Completion

milestones pre-requisites to obtain the Client

acceptance certificates

Contract conditions highly unfavorable

Negative cash flow

Dispute resolution mechanism

High LD’s

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TECHNICAL RISKS

Poorly prepared FEED package/ immature design

from the Client in EPC & D/B contracts

Unrealistic schedule

Lack of scope definition

Undefined and/or difficult handing-over

requirements

Uncertainty in soil/underground conditions

Limited time allocated for comprehensive bidding

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CCC INTERNAL EXECUTIVE RISKS

Unavailability of capable sub-contractors

Low labor productivity of Local Workforce

Timely availability of Project Team on site

Growth in Construction Management

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CONCLUSIONS / RECOMMENDATIONS

Early engagement with Client / Partner

Risk allocation to the party that can best manage /

mitigate the Risk

Spend enough time & money on Tender to identify

the Risk

Continuous monitoring of Risk at Project execution

Do not be afraid to walk away from Tenders

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THANK YOU

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