Lender's Independent Engineer (LIE) Report: Monitoring a Project Through Implementation
What an LIE is
A Lender's Independent Engineer (LIE) is a technical consultant or Chartered Engineer appointed by a bank, NBFC or lender consortium after a term loan is sanctioned, usually following a TEV study, to monitor the project through implementation and certify disbursements on the lender's behalf.
What an LIE does
- Reviews the DPR and TEV study as the baseline for monitoring
- Conducts periodic site visits verifying physical progress against the implementation schedule
- Certifies disbursement requests tied to actual work completed, not just invoices raised
- Tracks project cost against the sanctioned cost and flags overruns
- Assesses cost-to-complete and revised timelines where the project is behind schedule
- Reviews EPC and vendor contracts for technical and commercial risk
- Issues the final completion certificate at commercial operations date (COD)
Who appoints an LIE
- Banks and NBFCs monitoring a sanctioned term loan
- Lead banks in a consortium or syndicated lending arrangement
- Asset Reconstruction Companies (ARCs) and lenders monitoring an IBC resolution plan
LIE report vs TEV study
An LIE report and a TEV study cover the same project at different phases. The TEV study is a one-time appraisal completed before the loan is sanctioned. The LIE then monitors the same project through implementation once the loan is sanctioned. See our full guide to TEV studies for bank loans.
Related services & resources
Frequently asked questions
What is a Lender's Independent Engineer (LIE)?
A Lender's Independent Engineer (LIE) is a technical consultant or Chartered Engineer appointed by a bank, NBFC or lender consortium, usually after a term loan is sanctioned following a TEV study, to monitor project implementation on the lender's behalf.
When is an LIE appointed?
Typically after a term loan is sanctioned for a greenfield, expansion or modernisation project, remaining engaged through implementation until commercial operations begin. Lead banks in a consortium, and ARCs monitoring an IBC resolution plan, also appoint LIEs.
What does an LIE certify?
An LIE certifies disbursement requests against actual physical progress at site, tracks project cost against the sanctioned cost and flags overruns, reviews cost-to-complete and revised timelines, and issues the final completion certificate at commercial operations date (COD).
Does Axium provide LIE services?
Yes. Axium's partners, Chartered Engineers Harihar S (Registration F-125668) and Kamalakannan C (Registration M-1564255), act as Lender's Independent Engineer for banks, NBFCs and lender consortiums monitoring sanctioned term loans through implementation.
Need a Lender's Independent Engineer?
Have questions first? Call +91-8939-891329
Not ready yet? See all Chartered Engineer services.