Services - Risk Management
Counterparty Financial Assessment
All contracts require a company to assume some level of contractual risk. Understanding who you are doing business with and their financial capacity to complete the contract helps to mitigate but not eliminate that risk, it also helps contracting parties in their negotiation positions and makes the outcomes clear before they enter into contract.
Olvera’s counter party risk assessments operate in three phases:
- Prequalification– evaluation of the financial capacity of contractors or suppliers seeking prequalification for construction, facilities maintenance, general goods and services, Information, Communication and Technology (ICT), trade services, complex medical diagnostic equipment, service consultants and other goods and services.
- Tender– evaluation of the financial capacity of tenderers before they are awarded a contract for construction or facilities maintenance, general goods and services, Information, Communication and Technology (ICT), trade services, complex medical diagnostic equipment, service consultants and other goods and services.
- Monitoring– includes updates on a previous financial assessment and the on-going evaluation of the financial capacity of service providers with contracts that are in progress.
Olvera in conjunction with Curby McClintock can also provide more “deep dive” investigations into key suppliers, criminal history, legal claims when financial assessments only cover one aspect of the contract risk.
Identifying the Risk scope
The level of financial assessment to be carried out should be correspond to the scale, scope, and relative risk of a proposed project.
The table below indicates which reports are recommended according to contract value and contractor revenue.
Government agencies are responsible for determining the appropriate level of financial assessment required, based on the factors above.
Turnaround times are based on the level of assessment and the priority level that a requesting party has specified. The time commences from the date and time the client request is agreed and all documents have been received.
*Comprehensive financial assessments
The required turnaround times for comprehensive financial assessments are to be negotiated and agreed between our clients and Olvera.
Olvera partners with data analytics specialist Anility.io (insert link to site). Anility.io are experts in extracting and collating private financial statements and industry data for comprehensive data management and analysis.
Olvera is on the NSW State Government Treasury Panel for service providers.
How we can help
Olvera’s counter party risk assessments help identify and quarantine risk before entering into long-term or high value contracts where performance failure has significant impact on the project or your business.
Our services include: