Chapter 11: Finance, Regulation and Risk in Project Appraisal

No two projects are the same, even for engineering projects that may have many similarities and commonalities. They are unique in their composition, location, size, time, environment, people and purpose, and, as such, there will be uncertainty over their performance and effectiveness. Therefore, all projects to some extent or another require appraisal. How much time and effort (the degree of detail and expertise) put into an appraisal varies with the nature of the project under consideration. In recent years there has been a significant increase in focus on environmental and social impacts of projects, moving beyond commercial and financial criteria. Some of this is down to government policy and regulatory expectations, but the reputation of an organisation and the risk and opportunity that are reflected in environmental, social and governance factors for organisations and their investors is arguably even more significant as a driver for this change in focus.