Procurement’s Final Due Diligence Checks in Construction Contracts: Essentials for 2025

Procurement Due Diligence Construction

Before the Contract is Signed: How Procurement Experts are Raising the Bar on Due Diligence

A LinkedIn post by Ramzi Ibrahim reminds the construction world why last-minute checks are the difference between a secure project and a costly disaster.

Introduction

“Due diligence isn’t an extra step — it’s the final defense against bad decisions.” That was the clear message from Ramzi Ibrahim FCIPS (Chartered), MBA MEng, whose recent LinkedIn post grabbed the attention of procurement and construction professionals alike. In a time when speed often threatens to outrun scrutiny, Ibrahim’s detailed checklist served as a timely reminder: final checks are not optional if quality, compliance, and project success are the goals.

Background & Context:

Ramzi Ibrahim, an experienced Procurement & Commercial Director known for leading mega infrastructure and iconic projects, is no stranger to the complexity of construction contracting. His post comes at a crucial time when companies are under increasing pressure to deliver projects quickly, often at the risk of skipping critical procurement protocols. Ibrahim’s breakdown emphasizes that a thorough vetting process — spanning financial health, legal compliance, operational capacity, and ESG — must happen before any award is finalized.

Main Takeaways / Observations:

1. Financial and Commercial Due Diligence Is Essential

  • Contractors must pass rigorous financial health checks, including audited financial statements, credit ratings, and bank references.

2. Operational Readiness Can’t Be Assumed

  • Verifying technical capability, equipment condition, and key personnel qualifications ensures that bidders aren’t overpromising.

3. Legal Compliance Must Be Proactive

  • Checking registrations, permits, and litigation history prevents future legal entanglements.

4. ESG and Ethical Checks Are Now Non-Negotiable

  • Sustainability records, ethical sourcing practices, and local inclusion commitments are just as important as technical bids.

Community Reaction:

While the post had modest engagement initially (6 likes at the time of capture), the level of specificity and professionalism generated positive private discussions among industry insiders. Several procurement managers and project leads privately reshared the post within their networks, recognizing its practical value for real-world tendering challenges.

Our Perspective / Analysis:

From a legal and contract management lens, Ibrahim’s advice is gold. Contract clauses around warranties, insurance, and liability can only protect you if the underlying entity is financially and operationally capable. The due diligence Ibrahim outlines is, in effect, the real risk mitigation strategy — far stronger than any clause tucked into the agreement. It’s a reminder that good contracts start with good counterparties.

Call to Reflection or Action

If you’re about to sign a major contract, ask yourself: Have you truly looked beyond the paperwork — into the reality of who you’re about to trust with millions of dollars? If not, Ramzi Ibrahim’s checklist might be the most important document you review this week.

Click here to visit LinkedIn Post

Leave a Reply

Your email address will not be published.