Independent engineer
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An independent engineer, also known as a lender's engineer, is a term often given to the engineering representative of the lender, or financier, of a large capital project. The key is to be independent so that opinions on the technical aspects of the project are not biased either in favor of the lenders or the developer/owners. To maintain independence, the independent engineer is typically selected by the lender but paid by the developer/owner.
The role of the independent engineer is to conduct an independent technical assessment of a project or technical due diligence. The qualifications of an independent engineer are unusual in that in addition to understanding the engineering aspects of a project, the independent engineer must also be well versed in the business aspects of project financing. This includes the assessment of the technical aspects of major contracts such as EPC contracts, power purchase agreement, off-take agreements, long-term service agreements, and O&M agreements. An independent engineer will review the technical inputs (output, efficiency, O&M expenses, availability, etc.) to the financial model used by the lender and the developer/owner to justify the financing of the project.