Construction and Operating Risk 

Construction risk can be a major obstacle to a project's financial viability and its ability to obtain an investment-grade rating.  Some key issues that are considered when assessing a projects construction and operational risks are:

■  Right-of-way acquisition policies;

■  Environmental Permits;

■  Technology and design risk;

■  Contractor qualifications and experience;

■  Type of construction contract and terms;

■  Early completion incentives;

■  Availability of cash reserves.