I talk about Personal Growth, Management, Infrastructure and More | 👇JOIN +2k readers 👇
What does DSU stand for?
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I’ve been closing some insurance policies these days. For myself. Health, life, mortgage, etc. You don’t appreciate enough a good broker until you get one. If you’re serious about investing, this is your second more important broker after your mortgage broker. ​ But I don’t want to talk to you about personal insurance. But PPP insurance. ​ It’s probably one of those fields, most people mess up. Clients. Banks. SPVs… All parties alike. ​ You have insurance to cover accidents on site causing destruction. But when you have a massive landslide, don’t go to these insurers to compensate you for the millions of dollars in liquidated damages for delays. They won’t come to pay you a visit, and of course, to give you a check. But, this does not mean that you can’t be protected. ALOP insurances are for that. Also known as DSU, Delay in Start-Up. ​ For an affordable deductible and a few millions, you can get protection for these delays caused by events out of your control. ​ As an agency, you can opt for covering this risk yourself. Or preferably, ask in your contract for an ALOP or DSU insurance so that the private sector has some skin in the game and a lot of work justifying insurance companies with armies of lawyers to pay big checks in the range of 250 to 500 k dollars per day of delay. ​ Even COVID-19 could be insured in the past… Probably not the easiest insurance to get for infrastructure projects, but theme parks were used to get this protection for infectious diseases that could potentially close their doors for a while… when you have big debt, the last thing you want in that case is a shut down… (oups… just like with COVID-19 and PPPs…). ​ Anyway, I just wanted to raise this flag, as many students ask about this topic. ​ My best piece of advice… find the best broker you can find, with experience in PPPs and big infrastructure projects. From tender… and beyond… ​ You’re welcome. ​ And if you want more topics, more anecdotes that will help you save your *ss or your clients’ *ss, you can click below. ​My Mentorship​ ​ PD 1: If you liked this email, don't keep it in secret and forward it to a friend. They will thank you enormously one day. PD 2: If somebody has sent you this email and you want to receive emails like this yourself, visit vicentevalencia.com PD 3: If you want unsubscribe, click the link below. ​ ​ |
Vicente Valencia
I talk about Personal Growth, Management, Infrastructure and More | 👇JOIN +2k readers 👇
I’m doing quite a lot of work these days with market lead proposals. I mean, proposals coming directly from the market and made to the government of New Zealand. I love the ideas put forward by proponent. Their enthusiasm. And commitment. Most of them fail in the “exclusivity” criteria. Why you are so good that the government absolutely needs to negotiate with you directly without going to the market. It’s fascinating. That’s a high bar, but some people get through it. IP, exclusive rights to...
Time for a ridiculous story from the world of infrastructure contracts. You know, those multi-billion-dollar deals where one tiny typo can turn into a legendary office joke. Well… here you are one. Picture this. Somewhere in Europe. A massive bridge project. The contract is huge, hundreds of pages of legal and technical jargon. In the middle of all that, there was supposed to be a clause that said the contractor had to provide a "large-tonnage crane." Don’t ask why. Maybe some stupid Spanish...
I receive their email religiously every week. They fabricate and install curtains. You don’t expect to be renewing those things every week. Nor every year. But here they are, sending those emails weekly. On the other hand, I tried to look for 15 min for the guys that do the shampooing of my carpet. That’s something that you should be doing twice or so a year. Not an email. And still… is there anything more recurrent / certain? Probably yes, but it’s Sunday and I have the brain focused on...