Petroholding Development Management Activity

As a standard tested in over 20 years of experience, the following tasks are a good example of the Development Management activities once the target property is purchased:

Preparation of a detailed budget of the project with the support of the Designer and General Contractor. The budget will include all the direct project costs, inclusive of hard and soft costs, but also the costs for the management and running of the dedicated SPV, outsourced services and consultants;

Preparation of a timeline of works and monthly distribution of the budget in terms of cash flow;

Preparation of a project presentation to submit to banks both for the obtaining/renegotiation of a construction loan, and following negotiation of the debt financing;

Continuous management and supervision of bank relations;

Selection and negotiation with contractors and consultants not yet awarded based on the owner’s input;

If appropriate, conduct pre-award conferences with the successful bidders, prepare and negotiate the Project Construction Contracts for approval and execution by Owner and advise Owner on the acceptability of contractors, construction managers, subcontractors and material suppliers for the Project;

Provide recommendations on the Project Construction Contracts to mitigate the risk of cost overruns;

Constantly update the budget every time changes or modifications occur for submission to the Owner;

Supervise and monitor the progress in the Design and Construction activity over the entire duration of the development phase;

Management, discussion and submission of Change Orders to the Owner for approval and execution;

Monthly preparation of a report to the Owner inclusive of all costs incurred and production certificates

Prepare for Owner’s approval procedures for the review and processing of applications for payment by each Contractor and make recommendations to Owner concerning payment;

Schedule and conduct meetings periodically to discuss construction procedures, progress and scheduling with the Contractors and the Project Architect;

Coordinate with the Project Architect in its review of the Project to enable the Project Architect to determine the date of substantial completion.

Upon substantial completion by the Contractors of the Project work (as determined and certified by the Project Architect), monitor the Project Architect in its inspection of the Project and preparation of a detailed list (the “Punch List”) specifying any items which require completion, installation or repair or are otherwise at variance with the Drawings.