Completion risk

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Completion risk

The risk that a project will not be brought into operation successfully or be able to pass its completion test.

Completion Risk

The risk that a project may not be completed and/or produce revenue, either because the financing was cut off before completion or because the project's construction was done poorly. See also: Completion Test.
References in periodicals archive ?
By opting for a complete solution from a single supplier taking full responsibility for integrating all the systems into an efficient, optimized solution, the yards completion risks of this complex semisubmersible rig are minimized and the owners can expect maximum efficiency with optimal lifecycle costs, says Magnus Miemois, Vice President Wartsila Ship Power Solutions.
The objective is not necessarily for all participants to have equal investment, or percentage interest along the entire chain, but to the extent that there is some cross participation in the liquefaction and receiving facilities, some of the complex documentation process and potential project risks such as construction completion risks may be streamlined.
The high level of capital expenditures at both FPL and Capital Holdings creates completion risks, as well as funding risk.
These other factors include, among others: general economic conditions; oil and gas price volatility; our ability to find, acquire, market, develop and produce new properties; the risks associated with acquisitions and exploration; operating hazards attendant to the oil and gas business; downhole drilling and completion risks that are generally not recoverable from third parties or insurance; uncertainties in the estimation of proved reserves and in the projection of future rates of production and timing of development expenditures; potential mechanical failure or underperformance of significant wells; the strength and financial resources of our competitors and our ability to find and retain skilled personnel.
FAVORABLE CONSTRUCTION CONTRACT: The construction contract includes a guaranteed maximum price, thereby reducing potential construction cost variance and completion risks.
Completion risks and mitigants associated with the Fourth
In addition, construction and completion risks are largely mitigated by unconditional completion guarantees from the project sponsors, (several, but not joint) which provide for debt repayment should the project not achieve its commercial acceptance date.
40 times (x) under various stress scenarios, including a combination of low availability, high gas prices, and the potential performance impact of completion risks.
The construction contract includes a guaranteed maximum price contract, reducing construction and completion risks, which will be signed at closing of the series 2010 bond issue.
The Rating Watch Negative is based on the potential for heightened completion risks following an apparent natural gas explosion at the Kleen generating facility on Feb.