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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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