Technical due diligence (TDD) transforms project ambition into factual verification. For investors, it is the first barrier against unrealistic proposals. The OE leads this process, reviewing engineering documentation, permits, contractual structure, and resource planning to confirm that a project is both technically and commercially feasible.
What the bank looks for
Lenders evaluate readiness through the OE’s reports. They expect proof that the design complies with standards, the EPC contractor can deliver, and interfaces are closed. They study whether contingency allowances are realistic, whether local permits are secured, and whether the schedule has credible float. The OE’s verification prevents financiers from funding paper projects built on incomplete design.
Detecting red flags early
Inadequate geotechnical data, unclear procurement timelines, or unproven equipment vendors often surface during TDD. The OE translates these weaknesses into quantifiable risks, recommending mitigation before financial close. A project that passes untested may later require redesign, triggering claims and eroding IRR. Thorough TDD preserves both capital and credibility.
The investor’s shield
For investors, the OE’s due-diligence report is not an audit—it is defence. It allows negotiations to allocate risk appropriately and ensure covenants are enforceable. Technical realism protects the lender’s security and the sponsor’s reputation. Proper diligence costs little compared to the losses avoided by early detection.
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