Financial Risks Mitigation for Greenfield Infrastructure Contracts
Manoj Kumar Varma1, Anuja Shukla2
1Manoj Kumar Varma, Ph.D. Research Scholar, Noida International University, Noida, India.
2Dr. Anuja Shukla, Assistant Professor, Noida International University, Noida, India.
Manuscript received on January 01, 2020. | Revised Manuscript received on January 20, 2020. | Manuscript published on January 30, 2020. | PP: 3338-3342 | Volume-8 Issue-5, January 2020. | Retrieval Number: D9254118419/2020©BEIESP | DOI: 10.35940/ijrte.D9254.018520
Open Access | Ethics and Policies | Cite | Mendeley
© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: The Developing economies across the World witness huge Government spending on Infrastructure in order to boost their economy. Mainly these are Greenfield Projects (the projects/investments which are started from scratch level) and require a lot of Financial Planning at pre and post Contract Award level. This research paper identifies and proposes mitigation measures against the Financial Risks involved in Greenfield Infrastructure Contracts namely: 1) Financial Risks due to locked-up bank guarantees, 2) Financial Risks due to prolongation costs in case the works got suspended, 3) Financial Risks due to price escalation, 4) Financial Risks due to de-scoping of major part of the Works, 5) Financial Risks on account of delayed Payments and 6) Financial Risks due to delays and penalties.
Keywords: Financial Risk Management for Contracts, Greenfield Infrastructure Contracts, Contract Risk Management, Risk Mitigation.
Scope of the Article: Industrial, Financial and Scientific Applications of All Kind.