Risk that construction and commissioning slip beyond planned commercial operation date (COD), delaying revenue and increasing financing cost.
Audience: Buyer · Lender
When this guide applies
Greenfield poultry houses, hatcheries, feed mills and processing plants — any project with an EPC or turnkey contract.
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Coverage is severity-weighted, so covering a Critical risk moves the score more than a Low one.
Readiness score
0%
Early stage
0 of 9 mitigations · weighted 0/30
Site conditions differ materially from geotechnical assumptions
Severity: HighLikelihood: Medium
Impact: Foundation redesign, cost overrun 5–15% of civils budget
Mitigations
Commission an independent geotechnical survey before EPC contract signature — not after
Contract price is fixed except for a defined ground-conditions clause with quantified thresholds
Contingency of 5–10% of civils budget held by buyer, not EPC
RFQ / contract clause
"Ground conditions are treated as employer's risk only where they differ from the geotechnical baseline attached as Annex G. All other conditions are contractor's risk within the fixed price."
Late equipment delivery blocks commissioning
Severity: HighLikelihood: High
Impact: Idle civils, idle labour, deferred COD, loss of first placement window
Mitigations
Liquidated damages: typically 0.1–0.2% of contract value per day of delay, capped at 10%
Milestone dates for drawings, FAT, shipment and site acceptance — each with LDs, not just final COD
Long-lead items (breeder cages, evisceration lines, incubators) ordered before ground-breaking
RFQ / contract clause
"Liquidated damages for delay shall accrue at 0.15% of Contract Price per calendar day, capped at 10% of Contract Price, and shall be a genuine pre-estimate of the Employer's loss, not a penalty."
Permits and utility connections delayed beyond project schedule
Severity: CriticalLikelihood: Medium
Impact: Cannot operate even when facility is complete
Mitigations
Permit-tracking register maintained by buyer with named owner per permit
Utility connection (grid, water, gas) applied for at design freeze, not at commissioning
Diesel/LPG backup and water storage sized for 4 weeks of independent operation
RFQ / contract clause
"Utility connections and statutory permits are Employer's risk. EPC Contractor shall provide the technical documentation required for each application within the schedule set in Annex P."
