Construction Risk. There are certain risks inherent in the construction of large scale projects which include shortages of construction materials (e.g. steel bars, cement and diesel) and skilled workers, price increase in construction materials, labour disputes, unavailability and inefficiency of equipment, adverse weather condition, natural disasters, accidents, failure or postponement in the issuance or granting of licences, permits and approvals, and unforeseen engineering or environmental problems. Prolonged delay in the completion of the projects, loss of revenue and cost over-runs are likely to result from such events which could adversely affect MRCB’s business, operations and financial performance. MRCB will seek to mitigate these risks through, among others, close monitoring of the progress of MRCB Land’s construction projects and endeavour to promptly rectify any setback, and liaise with the relevant authorities or parties proactively. MRCB has also established long-term relationships with consultants, subcontractors or suppliers and where necessary, MRCB also makes bulk purchase of building materials in order to reduce the risk of shortage of building materials and/or increase in prices.
Construction Risk. The Blast Furnace Project comprises the construction of blast furnace plant, pellet plant, coke oven plant, power plant, sinter plant, raw material yard with material supply systems, blower, converter and ladle furnace, slab caster and other auxiliary facilities. Several contractors have been and shall be engaged by LBF to construct the Blast Furnace Plant based on their expertise and specialisation. However, there can be no assurance that the services rendered will always be satisfactory or match the targeted quality level on a timely manner. Further, there is a risk that should any contractors experience financial difficulties or other difficulties that may affect their ability to continue with the construction works, thus affecting the progress of completion. Notwithstanding the above, steps have been taken by LBF to mitigate such risk by appointing a project management consultant to oversee the Blast Furnace Project as disclosed in Section 6.3.3 of this announcement.
Construction Risk. All the risks associated with the construction of the facilities, like cost and time overruns and quality risks, would be borne by the Developer.
Construction Risk. The Parties shall be responsible for mitigating construction risk by employing technically and managerially qualified, experienced and competent personnel, consultants and contractors. Where possible the Parties shall mitigate the risk by using fixed price turnkey Engineering, Procurement and Construction contractors with adequate technical and financial capacity and experience. A Party shall be paid by the defaulting Party liquidated damages for proven losses arising from failure to abide by the agreed technical specifications, timescale and budgets.
Construction Risk. Until actual completion of the Work, and issuance of a Certificate of Occupancy, Notice of Completion, Substantial Completion Inspection Report and proof of permanent insurance provided to the Agency, Borrower shall maintain at Borrower's sole expense, with licensed insurers approved by the Agency, policies of insurance in accordance with insurance requirements as indicated on the Agency’s website (xxx.xxxxxx.xx.xxx/xxxxxxxxxxx/XXXX) and such other coverage as may be required by the Agency. If the Work involves rehabilitation, additional insurance requirements may apply.
