Technical Due Diligence
Our team of engineers analyse the condition, reliability, level of maintenance, suitability and other relevant technical aspects of plant, machinery and equipment for the benefit of potential acquirers, investors and financiers. This specialized service is especially relevant for transactions involving mergers, acquisitions and project financing in a variety of sectors. In addition to the usual financial and legal due diligence required for such transactions, technical due diligence is often a key requirement to provide comfort to the parties involved in the project. We provide our technical due diligence services for various industries & sectors:
Residential projects Commercial projects including hotels, malls, o ffice buildings etc. Mixed-use developments Infrastructure projects The typical scope of work for Technical Due Diligence is as follows:
Condition analysis of plant & machinery Assessment of condition of buildings and structures Verification of production capacity Technical capability of the facility to support the projected growth plan meaning to evaluate if the plant is capable enough to undertake the required increase in production as projected by the client Overall plant metrics (operating condition/process flow, etc.) and proffer potential solutions, if applicable. Assessment of the risk in view of the plant’s & its core assets suitability for future upgrades, improvements or potential expansion possibilities. Assessment of level and quality of maintenance Estimation of future maintenance and repair costs Estimation of potential replacement costs of irreparable assets Evaluating key risks to the production facility and/or building structures Reviewing compliance with industry standards Assessment of technology, Project cost and defined implementation schedule Evaluating Technical and / or Functional Obsolescence related to facility, plant, machinery and equipment Claim Dispute Evaluation
Production facilities and factories across many sectors Warehouses and other industrial buildings & structures Infrastructure Development for industries
At ITAQA, we understand the importance of project implementation in accordance with the agreed parameters and the use of appropriate analytical tools to monitor the quality and progress of the various phases of a project.
Our team of engineers and consultants visit the project site regularly and work with the client to closely monitor and report the project performance in terms of finance, time, risk, quality, regulatory approvals and other relevant areas. Our project monitoring and technical consultancy services are very frequently utilized by real estate funds for under-construction projects approved by the regulatory authorities, where ITAQA is appointed as the Independent Technical Consultant on behalf of the Fund Managers and lending banks.
Our expert team then becomes the eyes and ears of the investors and lenders for the project. In addition to monitoring the timeline and quality of the projects and providing detailed progress reports, we also review and approve Progress Payments or Escrow Account Payments to be made to the project developers on behalf the lenders and investors.
Project monitoring scope is tailored to each individual Project and the Clients’ needs with options including:
Statutory – legislation compliance, sustainability Project review – design, contractor Financial appraisal – including valuation methodology and base information, projected cash flows, financial drivers Consultancy and construction agreements Construction costs – advise on overruns, review drawdown requests against forecasts and cost plan Construction programme – monitor progress against terms of agreement and planned progress, early warning of delays, progress photos Construction – monitor as-built compliance against drawings and specifications, advise on the impact of variations on cost and quality Practical completion – confirm discharge of conditions, nonstatutory and statutory consents, documentation complete, outstanding works, future recommendations Typical under-construction projects for which our Project Monitoring services are utilized, include: Production facilities and factories across many sectors Industrial land development projects Warehouses and other industrial buildings Industrial infrastructure