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Project Risk Advisory

Our project risk team specialises in advising bidders to public private partnership (PPP) projects. We work as an integral part of the bid team to understand service delivery proposals.

We support bidders in their negotiations with the public sector, sub-contractors, and lenders, all with regard to risk allocation and insurance obligations.

We comment on the concession agreement, with a view to allocating risk to the party best able to manage it, design the insurance solution, and review the flow down of risk to the sub-contractors, particularly with regard to uninsurable risks.

As the bid develops, we provide budgets for insurance over the entire life of the concession (construction and operation) and advise on contingencies for deductibles, insurance premium tax increases, and premium volatility.

Upon financial/commercial close, the project risk team exits from the project in the same way as the sponsors redeploy their bid teams, with the project thereafter handled by the appropriate part of Marsh.

In summary, our expertise comes as the insurance expert of the bid team to PPP concessions, with service that includes:

  • Identifying, negotiating, and managing risk and insurance features contained in all the key project agreements, supplier and customer contracts, and loan documentation.
  • Leading negotiations on behalf of the consortium, with other project parties including government authorities, sub-contractors, and lenders.
  • Providing detailed responses to all clarifications/bid responses.
  • Providing detailed and competitive insurance costs to satisfy each stage of the bid process.
  • Developing a bespoke project insurance design and market submission to generate underwriting appetite.
  • Aggressive insurance broking strategies.
  • The professional and timely delivery of all financial close documentation.
  • Claims administration, management, and, if required, advocacy services.
  • Seamlessly interfacing the construction at operational insurance programmes.
  • Private finance initiative (PFI) portfolio insurance procurement strategies.

We have a wealth of experience across key project sectors, including accommodation, blue-light, custodial, energy, defence, education, health, housing, leisure, roads, transportation, utilities, and waste.

We understand the divergent risk tolerance and particular issues of the public sector, equity investors, lenders, and the construction sector, enabling our team to work extensively with you and your advisers to design and implement solutions (including portfolio insurance procurement) to protect stakeholders and their financial investments in the following phases:

Bid Phase:

  • Risk review.
  • Bankable contractual structure – negotiated and executed.
  • Financial model inputs – fully developed costs and contingencies.
  • Insurance programme design.

Construction Phase:

  • Compliant coverage.
  • Competitive and innovative insurance placement.
  • Site and engineering surveys.
  • Claims advocacy.

Operations Phase:

  • Compliant coverage.
  • Competitive and innovative insurance placement/portfolio procurement.
  • Advice on changing risk environment.
  • Dedicated claims support.