There’s probably never been a more important time for developers to look below the surface of companies providing utility network construction and asset adoption services.
It is an unfortunate fact that there have been some very high profile corporate casualties in recent times, both in infrastructure construction and among energy suppliers and brokers, so rigorous financial due diligence should be high on the list of priorities for organisations involved in residential and industrial and commercial developments.
The consequences of getting it wrong can be huge. For housebuilders, any unexpected halt to utility infrastructure construction can translate into significant slippage in building schedules, with the negative financial impact that involves, let alone the cost of unwinding original contractual obligations and appointing new contractors.
In industrial and commercial sector projects, whether privately or publicly financed, the effect of a contractor or supplier failure can also be far reaching, particularly if the scheme involves multi-occupiers, such as mixed-use development or business park, or is a vital community resource, such as a hospital. And the buck will inevitably stop with the developer.
Then there’s asset ownership. An increasing number of developers are turning to local utility network ownership specialists to realise the inherent value of their gas, electricity, water and fibre assets to offset construction costs.
Here, the same health warnings apply– developers could be storing up problems if their chosen asset adoption company runs into difficulties through a lack of liquidity or an inability to respond quickly to any network issues. And since these relationships will likely cover multiple sites, the benefits of partnering with a network operator with a strong balance sheet and ready access to lines of finance cannot be overestimated.
At Energy Assets, utility network construction and asset ownership are our core business offers – indeed it was our success in these areas aligned with robust financial performance and a strong reputation for excellence that won the support of our shareholders Alinda Capital Partners and Hermes Investment Management.
The result of this financial backing means Energy Assets is well placed to withstand the shocks of any market volatility caused by external events, such as Brexit, while our ongoing investment in a highly skilled direct labour force – and our own network ownership vehicles - provides the flexibility needed to meet the needs of our customers over the longer term.
To find out more about the value of working with Energy Assets, go to www.energyassets.co.uk