A good team of advisors is present from the beginning of the project, through legal structuring and regulatory compliance, to the start-up and resolution of conflicts if they arise. Having expert professionals is essential to avoid mistakes in the process that could lead to subsequent legal disputes.
In the execution of large projects, legal advisory plays a fundamental role in ensuring their feasibility and obtaining the necessary financing. From legal structuring to risk management and regulatory compliance, lawyers are key players at every stage of the process.
A good team of advisors is present from the beginning of the project, through legal structuring and regulatory compliance. Specialized project lawyers work closely with development teams to legally structure every aspect of the project. This includes ensuring that the project aligns with local and international regulations, thereby avoiding potential legal obstacles that could arise during implementation.
Following this initial step is comprehensive risk management: “The identification and management of legal risks is another critical area where lawyers contribute their expertise. We evaluate and address regulatory, contractual, and compliance risks that could impact the project’s viability or financing, always in collaboration with professionals from other involved areas. This preventive work is essential to mitigate potential legal complications before they become significant issues,” comments Belén Quezada, Senior Associate at Apparcel Uriarte Abogados.
Lawyers are also responsible for negotiating and drafting crucial contracts for the project, such as financing agreements, supplier contracts, and construction agreements. These contracts not only secure the necessary financial support but also lay the foundation for the successful execution of the project.
Moreover, in the event of legal disputes arising during the project’s execution, these professionals play a vital role in conflict resolution to minimize the impact on the project’s continuity and financing.
Legal Steps for the Execution of a Large Project
To execute a large project in our country, it is essential to follow a series of legal steps that ensure regulatory compliance and the project’s viability. The main steps are detailed below:
Feasibility Assessment and Preliminary Permits: Before starting any project, it is crucial to conduct feasibility studies that evaluate technical, economic, environmental, and legal aspects. This includes determining the need for preliminary permits based on the project’s nature and location.
Construction Permit Application: The next step is to obtain the necessary construction permit. In Chile, this can vary depending on the municipality where the project is located. It is important to comply with the specific requirements of each municipality, which may include traffic or environmental impact studies, among others.
Environmental Regulations: According to Chilean regulations, projects must comply with environmental regulations, which in some cases can be very strict. This may involve conducting environmental impact studies and obtaining the corresponding authorizations based on the project’s classification (Environmental Impact Declaration – DIA, Environmental Impact Study – EIA, among others).
Labor and Social Security Aspects: It is necessary to comply with Chilean labor regulations, which include employing workers under proper contracts, paying contributions, and implementing occupational health and safety measures at the workplace. In Chile, these regulations are very strict, and there are institutions that inspect on-site to ensure safety compliance and that there is no risk to on-site employees.
Continuous Monitoring: During execution, it is essential to conduct continuous monitoring to ensure compliance with all legal and regulatory obligations. This includes proper permit management, periodic review of project progress, and timely response to any regulatory changes that may affect execution.
Project Closure and Handover: At the end of the project, it is necessary to fulfill legal and administrative requirements for its closure and handover. This step includes processing final reception certificates and other final documents that confirm the satisfactory completion of the project.
In summary, the execution of a large project in Chile requires careful adherence to established legal and regulatory procedures. It is advisable to have specialized legal advisory to properly guide each stage of the process and ensure the project’s success.
Link to the news: https://www.cdt.cl/el-papel-de-la-asesoria-legal-en-la-viabilidad-y-financiamiento-de-grandes-proyectos/