Independent Engineer


An Independent Engineer, also known as the 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. In order 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 provide 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, O&M Agreements, etc. Furthermore, the Independent Engineer will review the technical inputs to the financial model used by the lender and the developer/owner to justify the financing of the project.

Scope of work

While the role of the Independent Engineer is similar to an Owner's engineer, they are distinctly different. An Independent Engineer will deal with the lenders and legal counsel on a regular basis to evaluate the financial health of the project as well as the technical aspects. Conversely, the Owner's Engineer is more often dealing directly with the engineer of record, the constructor, and equipment suppliers with a focus on ensuring that the technical details of the project meet the specifications.
Typical scopes of work for an Independent Engineer often include: