Larger owners quite often acquire major projects from junior developers at various development stages, including potentially close to Final Investment Decision. Of course, such a transaction requires a substantial due diligence, as well as some precautions to fully understand the remaining risks associated with the venture. In our new White Paper [2023-06] ‘Key steps for an Owner Acquiring a Project in Late Development Phase’, based on our experience we expose some of the major precautions that need to be considered from the project management perspective.
Taking over a project in the middle of its development phase is a sensitive issue and certain project management key aspects must be particularly evaluated by the new owner during its due diligence. The execution strategy may need to be updated as well as the risk analysis to account for the impact of the new owner circumstances on the project. Many owners also underestimate the impact of the actual transition of the organisation as a result from the transaction, which will necessarily have an impact on the overall project schedule.
The White Paper states some general issues and focuses on several specific topics:
- project maturity: technical maturity, site knowledge and regulatory aspects, project preparedness
- aspects related to the business case such as estimating uncertainties, contingency, operating costs estimates
- integration of the project organisation in the overall owner organisation
Read our new White Paper [2023-06] ‘Key steps for an Owner Acquiring a Project in Late Development Phase’ to understand better the attention areas if as an owner you consider acquiring an industrial project in development phase.
If you can’t access the link to the white paper, copy and paste the following link in your browser: https://www.projectvaluedelivery.com/_library/2023-06_owner_project_takeover__v1.pdf
