Legal and Technical Evaluation of a construction company

Country
  • Egypt
Duration of assignment

1 months

Year: 2016

Client
  • International Finance Corporation (IFC)
Description of project

Aninver InfraPPP was hired by the IFC for the assessment of an Egyptian construction company, with the goal of obtaining an accurate picture of its balance, portfolio of work, and its positioning in the market.

The assessment was conducted from the technical, economic, and legal perspectives.

Services provided
  • An assessment was conducted of selected key contractual terms including performance and payment bonds, letters of credit, scope, schedule, cost and payment, damages, changes, warranties and performance guarantees, project acceptance and testing.
  • The various components of project execution were considered to identify conflicts, omissions, and misunderstandings regarding the roles and responsibilities of the parties.
  • Comments were made on the existing construction equipment the company owned, its utilization rates, and remaining life.
  • Price estimates of the proposed new construction equipment to be purchased were reviewed for reasonableness and needs/rationale were assessed.
  • The company’s approach to procurement was evaluated and comments were provided on the Project Management Tools the company had for controlling costs and schedule.
  • Comments were made on the Quality Control and Safety procedures employed on their projects.
  • A Risk Management tool was set up for EPC Contracts, with examples of good practices.
  • Recommendations were provided on how best to set up Value Engineering in the company as a tool for an EPC contractor.
  • The company’s organization structure was evaluated and benchmarked against other comparable construction companies.
  • The type of technical training and skills needed for the transition to EPC projects were commented upon.
  • Comments were made on the relevance and risk of having a workforce base of 2000 permanent and 9000 temporary employees, including a review of the Manual to Non-Manual workforce ratio.
  • The company’s technical capabilities were benchmarked against other comparable construction companies in the world.
  • The tracking systems for variation orders were reviewed.
  • The company’s existing progress reports were reviewed and compared with good industry practices.
  • A comparison was made with other construction companies in the region in terms of skills, expertise, and labor rates.

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