Red Flag Reports

Due Diligence

We offer comprehensive red flag report services for construction, engineering, and commercial property projects. Red flag reports play a crucial role in identifying major risks or issues that require attention, allowing project managers to address problems early before they escalate into crises.

Our approach to creating red flag reports involves gathering all pertinent details from the parties involved to understand the full scope of the risk. We consult subject matter experts to analyze technical red flags and develop actionable reports that scale and weigh risks, along with mitigation plans. This process requires time, skill, and attention to detail to ensure the reports are of high quality and well reviewed before actioning.

When creating red flag reports, we assign ownership to clearly identify who is responsible for managing the risk and the necessary actions to address it. Additionally, we outline mitigation options, providing stakeholders with actionable strategies to evaluate and mitigate the identified risks. Workshops and meetings can help ensure accurate information, as well as straighten out and clarify recommendations.

Evaluate risk systematically, such as:
The technology for the project does not perform as originally expected; the design of the project is not correct or the advancement of the work is not properly scheduled; and,
This risk arises when there is a possibility of delays, denials, or restrictions in obtaining the essential licenses and permits needed to conduct operations lawfully. Example licenses include Environmental Impact Assessment (EIA) License, Generation License, Grid Connection License, Construction Permit and Operation and Maintenance (O&M) License.
This encompasses the risks related to obtaining necessary permits, adhering to zoning regulations, meeting environmental and social impact assessments and ensuring compliance with local planning authorities’ requirements. Failure to effectively manage planning risk can result in delays, increased costs, or even the cancellation of the project.
The contractor delivers the infrastructure with a delay; The project is delivered but it performs below the agreed upon standards; The final cost of construction far exceeds the original budget.

Our team may also consult other experts such as grid advisors and engineers to address technical red flags effectively.

Red flag reports should be used proactively and frequently throughout the project lifecycle to flag risks before they become unmanageable. They are especially critical at project milestones when major commitments are being made that could be impacted by red flags if not addressed. These reports should precede finalizing budgets, awarding major contracts, approving designs, obtaining permits and financing, commencing construction, and completing real estate transactions.

Identify risks

Start taking action to mitigate problems.

Red flag reports increase transparency among stakeholders, which allows everyone to align on priorities. Early risk mitigation is facilitated by identifying problems in their infancy, allowing for more effective risk management. Red flag reports also enhance accountability by creating a record of who was made aware of risks and when. Additionally, they provide valuable documentation to demonstrate prudent project management in the event of disputes or claims.

Comprehensive red flag report
Risk identification and assessment
Mitigation plan development
Actionable strategies for risk mitigation
Consultation with subject matter experts

Schedule a meeting with an expert or request a proposal