Avoiding Investor Pitfalls in Complex Construction Financing Arrangements
Construction constantly becomes more complex, in engineering and organisation and legal aspects. In this article for Construction Law, Lawrence Winsor says project financing is increasing in complexity as well. Some simple tactics can help avoid pitfalls and disputes.
The frontier for construction project investment continues to grow – not just geographically and technologically – but also structurally, in the legal sense. Both equity and debt investors can employ a variety of complex corporate structures, project delivery methods, and financial realization plans to maximize return. Despite well-drafted and well-intentioned agreements, these complex arrangements often lead to disputes when economic expectations falter.
This article highlights some of the recurring pitfalls observed for investors in complex construction project financing, and offers simple tactics to help avoid the issues and related disputes. These considerations apply to a broad range of construction projects, including energy, power, petrochemical, transportation, logistics facilities, and manufacturing facilities.
Read the article on Construction Law.
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This information is provided by Vinson & Elkins LLP for educational and informational purposes only and is not intended, nor should it be construed, as legal advice.