Due Diligence Service

Invest with Confidence: Kiltoom's Due Diligence for UK and Irish Construction & Infrastructure

Investing in, financing, or undertaking major construction and infrastructure projects in Ireland involves significant capital, long timescales, and exposure to multifaceted risks. From complex building developments to large-scale transport, energy, utility, or data centre projects, the potential for hidden liabilities, unforeseen challenges, and costly disputes is ever-present. Making critical decisions without a comprehensive understanding of the underlying realities can lead to severe financial losses and project failure.

In this high-stakes environment, specialist construction and infrastructure due diligence is an indispensable tool. It moves beyond generic financial audits or legal checks to provide a deep-dive assessment of the specific commercial, contractual, technical, and operational risks inherent in the sector. Relying on incomplete information is a gamble few can afford.

Kiltoom Advisory delivers expert, independent construction and infrastructure due diligence services across Ireland. We empower investors, lenders, developers, public bodies, and contractors with the detailed insights required to make informed decisions, mitigate risks effectively, and proceed with greater confidence.

Why is Specialist Due Diligence Crucial for Construction & Infrastructure in the UK & Ireland?

The Irish construction and infrastructure sectors have unique characteristics demanding specialist scrutiny:

• Diverse & Complex Contracts: Projects operate under various standard forms (e.g., the Public Works Contract (PWC) framework dominant in public infrastructure, NEC contracts gaining traction, traditional RIAI forms, international FIDIC contracts) and bespoke agreements. Each allocates risk differently and requires specific administrative expertise.

• Intricate Regulatory Landscape: Navigating planning laws, environmental consents, health and safety regulations (HSA), utility interfaces, public procurement rules, and payment legislation like the Construction Contracts Act 2013 (CCA 2013) requires sector-specific knowledge.

• Technical & Logistical Challenges: Assessing ground conditions, design feasibility, buildability, long-term operational factors (especially for infrastructure), resource availability, complex logistics, and supply chain resilience demands industry insight.

• Stakeholder Complexity: Infrastructure projects often involve multiple public and private stakeholders, intricate funding models (including PPPs), and significant public interface, adding layers of risk.

• Market Dynamics: Fluctuations in material costs, labour availability, inflation, and the broader economic climate heavily influence project viability.

Benefits of Kiltoom Advisory's Focused Due Diligence:

Robust, sector-specific due diligence provides tangible advantages:

• Informed Investment/Lending Decisions: Understand the true risk profile and potential returns before committing capital.

• Accurate Valuation & Risk Pricing: Identify hidden liabilities and potential cost overruns to inform valuation and negotiation.

• Early Identification of Red Flags: Uncover critical flaws in contracts, project planning, or counterparty capability that could derail the venture.

• Stronger Negotiation Position: Leverage detailed findings to secure better contractual terms, warranties, or price adjustments.

• Effective Post-Transaction Strategy: Develop informed plans for project monitoring, risk mitigation, and integration based on pre-commitment insights.

Key Areas Covered by Kiltoom Advisory's Due Diligence

Our comprehensive due diligence process, tailored to the specifics of your construction or infrastructure project/transaction, typically includes:

1. Commercial & Contractual Due Diligence:

* Contract Analysis: In-depth review of main contracts, subcontracts, consultant appointments, JV agreements (PWC, NEC, FIDIC, RIAI, etc.), assessing suitability and clarity.

* Risk Allocation Assessment: Detailed examination of clauses governing key risks (e.g., design responsibility, ground conditions, delay, defects, interfaces, operational performance).

* Payment Terms Review: Analysis of payment mechanisms, certification procedures, retention, and compliance with CCA 2013.

* Change Management Evaluation: Assessing the contractual procedures for managing variations, compensation events, or instructions.

* Security Package Assessment: Reviewing the adequacy and enforceability of performance bonds, guarantees, warranties, and insurances.

* Dispute Resolution Review: Analysing the agreed mechanisms (Conciliation, Adjudication, Arbitration, Litigation) and their strategic implications.

* Identification of Onerous/Unusual Clauses: Highlighting terms imposing disproportionate risk or liability.

2. Project Status & Performance Review (for ongoing projects/acquisitions):

* Programme Evaluation: Assessing progress against baseline/accepted programmes, critical path analysis, identification of existing/potential delays.

* Cost Performance Analysis: Reviewing budget vs. actual costs, forecast cost-to-complete accuracy, cash flow projections, and earned value analysis.

* Claims & Dispute Landscape: Reviewing existing claims (incoming and outgoing), potential dispute triggers, and associated liabilities.

* Project Documentation Audit: Assessing the quality, completeness, and accessibility of key records (critical for managing claims and demonstrating compliance).

* Operational Readiness (Infrastructure): Reviewing plans and preparedness for handover, commissioning, and long-term operation and maintenance, where applicable.

3. Counterparty Assessment (Contractors, Developers, JV Partners, Key Supply Chain):

* Commercial & Delivery Track Record: Evaluating past performance on comparable construction or infrastructure projects, including safety, quality, timeliness, and claims history.

* Technical Capability & Resource Depth: Assessing the organisation's technical expertise, management capacity, personnel availability, plant/equipment resources, and supply chain robustness relevant to the project scale.

* Management Systems Review: Examining quality assurance, health & safety (PSDP/PSCS roles), and environmental management systems and certifications.

* (Note: We collaborate closely with specialist financial advisors for detailed assessments of financial stability).

4. Integrated Risk & Opportunity Analysis:

* Consolidating findings to present a clear picture of the key commercial, contractual, technical, and operational risks, often rated by potential impact and likelihood.

* Identifying potential opportunities for value engineering, risk mitigation, improved contract terms, or enhanced project governance.

Who Benefits from Construction & Infrastructure Due Diligence?

Our services are essential for:

• Investors & Infrastructure Funds: Evaluating potential investments in projects, portfolios, or operating assets.

• Lenders & Financial Institutions: Assessing project bankability, security packages, and key risks before providing debt finance.

• Public Sector Bodies & Contracting Authorities: Ensuring robust assessment before awarding major PWC or other framework contracts; assessing PPP bids.

• Developers & Employers: Making informed decisions when acquiring land/assets with development potential, appointing main contractors or key consultants, or entering joint ventures.

• Major Contractors: Assessing risks before tendering for large/complex projects, entering JVs, or acquiring significant specialist subcontractors.

The Kiltoom Advisory Due Diligence Process

Our methodology is thorough, independent, and commercially focused:

1. Scope Definition: Working closely with you to understand your objectives and tailor the due diligence scope precisely.

2. Information Gathering: Coordinated requests for information and efficient management of data room access.

3. Expert Analysis: Detailed review and critical assessment of all relevant documentation by our experienced professionals.

4. Targeted Inquiries: Structured engagement (where permitted) with relevant parties to clarify information and probe key areas.

5. Risk Synthesis: Applying our deep sector knowledge to identify, analyse, and prioritise key risks and opportunities.

6. Clear Reporting: Delivering comprehensive yet accessible reports summarising findings, conclusions, risk ratings, and clear, actionable recommendations.

7. Ongoing Support: Providing post-report briefings and clarifications to support your decision-making process.

Why Kiltoom Advisory for Your Irish Due Diligence Needs?

• Sector Focus: Dedicated expertise specifically within the Irish construction and infrastructure sectors.

• Contractual Mastery: In-depth knowledge of PWC, NEC, FIDIC, RIAI, bespoke contracts, and the impact of CCA 2013.

• Experienced Team: Professionals combining practical industry experience with sharp commercial and contractual insight.

• Proven Independence: Delivering objective, unbiased assessments you can rely on.

• Commercial Pragmatism: Focusing on the real-world implications and financial impact of our findings.

• Tailored Solutions: Adapting our approach to the unique demands of buildings, transport, energy, utilities, or other infrastructure assets.

Major construction and infrastructure commitments demand rigorous scrutiny. Don't proceed based on assumptions. Ensure you have a clear, independent understanding of the risks and opportunities involved.

--> Invest and build with confidence. Contact Kiltoom Advisory today to discuss your specific Construction and Infrastructure Due Diligence requirements in Ireland.